Car insurance is mandatory for all drivers, but overpaying is not. Most drivers are looking to reduce their insurance premiums; fortunately, there are many ways that Canadian drivers can save on their car insurance.
Renewal time is a great time to find savings, but it is not the only time. You can find savings at any point with many insurance companies—and the savings could far outweigh any cancellation costs.
Shop around for car insurance quotes
Save $700 per year
Just like the title says, shop around. You could pay far less than you’re currently paying with your existing car insurance company. Each insurance company charges different rates to insure the same driver, with the same driving record and the same car.
Look for discounts on your insurance policy
Save $325 per year
There are many discounts available when looking for car insurance quotes; there’s the winter tire discount, multi-line discount, and roadside assistance discount to name just a few. Ask the insurance company for a list of available discounts and apply the applicable discounts to your policy for extra savings. Many drivers are unaware that discounts exist, so be sure to ask about them. Don’t be shy, it’s your money.
Increase your deductible
Save five to 10 per cent per year
Increasing your policy’s deductibles will lower your car insurance policy’s premiums. Many people plan for the "what if" scenario when choosing deductibles, and are afraid to increase their deductible, as they will have to pay more up-front in the event of an at-fault car accident. But the fact is you can save anywhere from five to 10 per cent if you increase your collision and comprehensive deductibles to $1,000. If you can afford to have a higher out-of-pocket cost if something happens to your car, this is worth considering.
Other ways to save
If you’re looking for more savings, you could ask your insurance company if there is a discount for paying the premium in full instead of monthly. While it may be convenient paying monthly, that convenience comes at a price. Many companies charge a little extra to cover the cost of administering monthly payments. If you can afford to pay your premium annually—in one lump sum—then you’ll ultimately pay less for your coverage.
Commute distance also affects your insurance rates. In most cases, not significantly, but each factor can add up to a higher rate. Take a look at your commute and if convenient, try taking public transportation, subway, or even carpooling.
By considering of all the tips mentioned, you should be well on your way to a lower car insurance rate. Get free insurance quotes today, compared against over 30 insurance companies and start saving!