Don’t let auto insurance premiums eat away at your savings. Stuff your wallet this Thanksgiving with these money saving car insurance tips.
- Drive safely
- Pay your premium annually
- Increase your deductibles
- Bundle your policies
- Seize your winter tire discount
Your driving record is literally in your hands, so steer clear of high premiums and drive safely and within the laws of the road. At-fault collisions and traffic tickets add up and can cost you hundreds, if not thousands of dollars, in unnecessarily high insurance premiums over the years.
Pay your premium in one lump sum instead of monthly
Monthly payments are convenient, but did you know many companies charge a little extra to cover the cost of administering them? If you can afford to pay your premium annually—in one lump sum—then chances are at the end of the year you’ll have paid less for your coverage.
Increase your deductibles
Save five to 10 percent by raising your deductibles. A deductible is the part of an insurance claim you pay so the higher your deductible, the lower your car insurance premium. Keep it within reach though because the deductible amount is what you’ll have to fork over if you need to submit a claim.
Bundle your policies
If you buy your home, condo, or contents coverage from the same provider who insures your vehicle then you’ll likely benefit from a discount in the range of five to 15 percent off of one, or even both of your policies.
Change your tires seasonally? Tell your insurer
Many car insurance companies offer a discount for buying winter tires and driving with them over the season. The winter tire discount will usually save you about 5 percent off your premium.
- As of January 1, 2016 all Ontario car insurance providers must offer a winter tire discount. Make sure your insurance provider knows about your winter tires to take advantage of the discount.
It may come as a surprise to you, but insurance rates often change. In Ontario, for example, the Financial Services Regulatory Authority of Ontario releases the auto insurance rate changes they’ve approved, usually within days of giving the insurer the green light to increase - or lower - their premiums. Some months, one or two insurers change their rates, and other times a handful do. As a result, if you haven’t compared auto insurance quotes lately, there’s a good chance you’re overpaying because the provider who gave you the best rate last time around, may not be the one who offers you the best car insurance rate this year.