Canadians are often paying high premiums on their Canadian auto insurance policies. In some cases, annual policies exceed $1,500 each year. What most people don’t realize is that there are many things they can do to reduce the cost of their insurance plans. Check out these great tips.
It’s easy to get into a rut when it comes to insurance. You may start out using the same company your parents used, then never changed it. You may have shopped around when you first bought the plan, but haven’t compared rates in a while. The best thing you can do is to get quotes from a few different companies once a year. Your situation changes and your insurance policy should reflect those changes.
Review Your Needs
Even if your current plan is still the most affordable, it doesn’t hurt to see if there’s anything you could change about your policy. For instance, you might be paying an extra fee for roadside assistance, but already get that benefit from a different company. Once you’ve paid off your car loan, you might consider removing coverage for cosmetic damages. A few little changes like this could mean big savings.
Ultimately, the best way to get lower insurance rates is to drive safely and resist the urge to make claims against your policy. For instance, if you get into a minor accident and your car needs repairs that only slightly exceed the deductible, consider paying for those damages out of pocket. Otherwise, the company is likely to increase your rates. If you’ve been accident-free for several years, you should qualify for a discount, so be sure to ask about it.
Choose Your Car Wisely
Each year, the insurance industry publishes a list of the cars that are most likely to be stolen. If your car is on that list, you’ll be paying more for insurance. While that’s not necessarily a good excuse to go out and buy a new car, it’s certainly something to think about the next time you’re car shopping. Choosing a car that’s unpopular and has additional theft-prevention features reduces your chances of having your car stolen. It will also reduce your insurance rates.
The more you’re on the road, the more likely you are to get into an accident. That’s why people with long commutes tend to have higher insurance rates. Keep this in mind when choosing a place to live. If you’re closer to work, you’ll drive less and can adjust your insurance accordingly. You could also ask your boss to work from home a few days a week or see if there are co-workers who are interested in carpooling.
Bundle Insurance Plans
Almost all insurance companies will offer you a discount if you choose to combine your insurance plans. Check out these discounts if you have more than one car or if you also require homeowner’s or renter’s insurance. However, it’s still important to shop around. In some cases, you’ll get a better deal by purchasing from different companies. It all depends on your unique situation.
Increase Your Deductible
The deductible is the amount of money you pay before the insurance starts picking up some of the tab. It can run anywhere from $100 to $1,000 or more. While most people like to keep it low so that they can avoid paying a lot of money if there’s an accident, increasing it can have a big effect on the premiums. For instance, increasing the deductible from $250 to $500 might save you more than $250 in premium charges. It’s definitely worth comparing the costs, but remember that you will be responsible for that amount if you need to make a claim. Those without an emergency savings account may find the lower deductible more attractive.
Think carefully about your auto insurance plan and pay attention to automotive news to look for trends in insurance. The more you do your research, the better the deal you’ll be able to get.