If you feel that you are still overpaying for your car insurance in Canada? Then it may be time to either buy another car or renew the existing policy. Whatever you may end up doing, reducing your auto insurance costs means more money in your pockets. The rates for car insurance vary between provinces, cities, and even neighbourhoods in Canada.
Remember that several factors influencing your car insurance costs can’t be controlled. These include where you live, the make or model of the car you presently drive, your gender, and your age. Besides, costs like public insurance base rates in Saskatchewan, Manitoba, and British Columbia are also beyond your control.
Keeping the constants and variables in mind can help you get the best auto insurance rates in Canada, especially when pairing up with an insurance aggregator like Surex. In this article, we shall discuss how you can save money on auto insurance in Canada.
To know even more about how to save money on auto insurance in Canada, team up with a reputable brokerage, like Surex! The team at Surex can help you control auto insurance costs, check out this link: http://www.surex.com/insurance/auto-car.
How to save money on auto insurance — 8 common methods
There are several steps you can take to save on your auto insurance. They include:
Comparing auto insurance quotes
Before enlisting yourself with an insurance company, it might be a good idea to shop around and compare quotes from different providers. At times, opting for the same insurance provider for your entire family can result in discounts and rebates on auto insurance rates. Therefore, it is always advisable to search and compare auto insurance quotes before finalizing.
However, there are caveats to this. While comparing auto insurance rates from multiple providers, you need to ensure that the quotes are for the same or equivalent products.
This can be ascertained by checking out each component for both insurance quotes – third-party liability, collision coverage, comprehensive coverage, types of losses covered, claims process details, and other options like accident forgiveness, etc.
Often, if the price seems too low comparatively, chances are that you aren’t getting the same value product with the exact specifications. Staying aware would be prudential in these cases.
Never miss a payment
One of the most common and effective financial advice, i.e., staying up to date on loan payments, is also applicable to your auto insurance.
Missing auto insurance payments can make you seem “higher risk” for your insurer and will result in much higher premiums in case of renewal. Also, if your insurance gets cancelled due to missed payments, you may end up paying a lot more and worse in case of an accident that occurs while you aren’t covered.
Inquiring for available discounts
Other than comparing rates for insurance, you may also want to check out other available discounts like bundle discounts. You can also opt to use an app or device like usage-based insurance (UBI) that helps monitor your driving and earn you lower rates. However, according to experts, bundling your auto insurance with others like home insurance can often give you better discounts.
A higher deductible
When you make an insurance claim, you have to make an initial deposit before your insurer pays out the balance. This is known as your deductible. Having a higher deductible can mean having lower premiums. This is because setting a higher deductible at the onset shows the intent of paying more later during a claim. Your insurer sees this as a low-risk behaviour and gives you competitive auto insurance premium rates.
The right vehicle type
Since insurance is all about risk assessment and mitigation, some cars carry a higher risk than others. Brand new cars will almost always have higher insurance rates than older or used cars of the same kind. Moreover, owning a luxury or a sports car is not a great way to get competitive insurance rates as these have higher risks, e.g., higher theft rates, than other car types.
Under these circumstances, you should use the “How Cars Measure Up” tool offered by the Insurance Bureau of Canada. This will enable the comparison of different car models in terms of safety features and relative costs of insurance.
Knowing exactly what you need
Various factors like the condition of your vehicle will dictate your exact insurance requirements. For example, if your vehicle is older, used, or generally isn’t worth a great deal, you may not need comprehensive and/ or collision insurance compared to a newer or high-value car.
Dropping excessive coverage whenever possible is a great way to reduce insurance rates. However, to prevent being underinsured, you should always carry sufficient third-party liability coverage.
Having a clean driving record
Your driving record can play a significant role in determining your auto insurance rates. In Canada, getting a DUI, not wearing a seatbelt, speeding tickets, or any form of high-risk driving behaviour all go into your driving history and increase your risk factor and the insurance premiums.
On the other hand, if you have a clean driving record, you are deemed someone with low-risk behaviour, significantly reducing your insurance rates.
In some provinces across Canada, and especially for teenagers or new drivers, having a successful driving course certificate from a reputed institute can be beneficial. The provinces that recognize this may take off a discount from your premium, giving you lower rates. If your province is eligible for such discounts, your insurer will be able to inform you about the exact details.
As with any insurance type, the key to lower insurance rates is to lower your risks. Your risk levels are determined by your car, your driving habits, and your record, among others. The key is to be aware of the factors that dictate your insurance rates and to be at the right end of the risk scale.
Other than personal metrics, you should also know the factors that can influence your insurer to offer you better rates. Often working with an insurance aggregator like Surex will help. With all these in mind, you should be able to place yourself in a position where you are eligible to obtain the best auto insurance rates.