We know that our customers are always looking for ways of lowering their auto insurance premiums. Auto insurance is a regulated market but it’s also highly competitive. The best way to get cheaper auto insurance rates is to understand how rates are determined and then shop around with different insurance providers. Rates can vary greatly depending on the risk appetite of the insurer.
Tips on lowering your auto insurance premium
Make changes to your insurance
Reviewing your current auto insurance policy is a great first step in understanding what you are currently paying for and how you might be able to get reduced rates. Look at your coverages and amounts and make sure that they are in line with your current needs. For example if your car is fairly old and you plan on purchasing a new one in the near future, you may consider dropping your collision coverage. Of course the easiest way to reduce premiums is to increase your deductible! Setting money aside in case you do have to make a claim, can help you in the long run if your monthly premiums are cheaper.
Bundle your insurance
You probably have insurance for more than just your automobile. Most people also have home insurance or tenants insurance and perhaps commercial insurance depending on their line of work. Most insurance providers will offer a discount if you bundle your insurance together. Combining home and auto is common, but some providers let you combine it all. Speak with your insurance provider about what type of discount you could receive if you bundle.
If you have comprehensive coverage in your auto insurance policy, then you should pay attention to ways of keeping your vehicle protected when you aren’t driving. High rates of theft for certain makes and models can be a factor driving up your insurance premiums. While most newer models of automobiles have theft deterrent systems, many older cars do not. Installing a theft deterrent system in your automobile that has been approved by the Insurance Bureau of Canada can help lower your insurance premium.
The changing seasons bring about different types of risks for Canadian drivers, and winter driving can be especially challenging. For your own safety it is recommended (and in some provinces required) that you switch from all season tires to winter tires while driving in winter months. Beyond being safer, you will also be rewarded! While most insurance companies have historically provided a discount for winter tires, starting in 2016 all insurance companies in Ontario now offer a discount.
The best way to help ensure you get the lowest insurance rate and continue to receive low rates is your own driving behaviour. With new distractions like smartphones and dash mounted interfaces and GPS units, it is more important than ever to keep your eyes on the road. Distracted driving, driving while impaired and careless driving leads to accidents and driving convictions that can impact your driving record and result in increased premiums for up to 10 years! Some insurance companies offer a claims forgiveness endorsement and a conviction forgiveness endorsement that can help keep your premiums lower for a first offense.
There are a few other things to consider in the future when it comes to your auto insurance rates. Consider the insurance rating of vehicles when you are shopping for your next automobile. Buying a vehicle that is less popular with thieves and cheaper to repair can save you money compared to other vehicle types. Another thing to consider is your commute to and from work. Shortening your commute can also help reduce your insurance premiums, so consider public transit options, carpooling or telecommuting if your work allows it.
This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.