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Auto insurance discounts you might be eligible for

Other than paying for your vehicle, insuring it is likely one of the biggest expenses associated with operating it. But insurance companies also offer ways to cut costs in the form of discounts.  The potential savings are based on a variety of factors – including a driver’s profile, vehicle type, claims history, driving habits, and coverage levels. In some cases, the saving can reach almost 30%.

Recently, Insurance Business Magazine checked out the policies of some of the country’s top car insurance providers, and compiled a list of the most common rate-reduction opportunities.

Policy discounts

Bundling discount

All insurers contacted offer discounts for policyholders who combine different insurance products. Bundling your auto insurance and home insurance with the same provider allows you to slash up to 20% from your car policy. Tenants can also combine their auto and renters’ insurance to save on premiums.

Multi vehicle discount

Most insurance companies typically reduce premiums by as much as 15% for households insuring more than one vehicle.

Price comparison website Lowestrates.ca describes this type of rate reduction as a “win-win” for both the policyholder and the insurance provider as “[the insurer] gets more of your business, and you get a discount.”

Group discount

Some insurers offer group rates for drivers holding memberships with an eligible group, which may include the company they work for, a professional or occupational association, non-profit or charitable institution, or union membership. Check with your broker to find out if this type of discount is available to you.

Loyalty discount

Several car insurance providers reward loyal customers with reduced rates come renewal time. Typically, the longer motorists stay with their insurer the higher the discount. Economical, Peel Mutual, The Personal, and Wawanesa offer this type of discount. Peace Hills offers policyholders premium reduction if they remain with the insurer for at least three years while L’Unique gives drivers who opt for a two-year policy a guarantee that their rates will not increase for the duration of the contract, even if they file claims.

Vehicle discounts

Discount for anti-theft devices

Because such devices make vehicles harder to steal, many insurers will offer give discounts to motorists who install certain security features in their cars. SGI Canada slashes premiums for customers who have installed “a non-factory device that automatically disables ignition or an approved vehicle tracking system” in their vehicles. Economical, meanwhile, offers security discounts to policyholders for equipping their cars with anti-theft systems.

Winter tires discount

Equipping a vehicle with winter tires is viewed as a responsible act that can contribute to everyone’s road safety. This is one of the reasons why many insurance providers offer discounts to drivers who have installed winter tires and keep them on during a certain period.

In Ontario, it is mandatory for insurers to give drivers a 5% reduction in premiums if their vehicles are equipped with winter tires.

Hybrid or electric vehicle discount

Some insurers offer between 5% and 10% discounts for policyholders who drive hybrid or electric vehicles (EV). Insurance companies view these types of vehicles as sustainable because of their very low emissions and low risk as they tend to be safer and less likely to break down.

Private parking discount

Where a car is parked is one of the many factors insurance companies take into account when calculating premiums. A vehicle parked on the street is exposed to more risks compared to those in a laneway or garage. Some insurers give discounts to policyholders with private parking.

Driving discounts

Telematics discount

Telematics, also known as usage-based insurance (UBI), has been gaining popularity in recent years, thanks to the technology’s ability to monitor a policyholder’s driving habits and use the information gathered to reward safe drivers in the form of discounted premiums. Intact, for example, takes 25% off the annual premiums of motorists with good driving habits through its ‘my Driving Discount’ program.

Clean driving record

Insurance companies often reward drivers with a clean driving record with significant discounts. Aviva Canada, Desjardins, Economical, Gore Mutual, RBC, RSA, The Personal, and Sonnet, among others, reward policyholders for either having no convictions and violations or not filing claims.

Individual discounts

Age-based discount

Some insurance providers give discounts to drivers between the age of 30 and 75 as they are seen as low risk compared to their younger counterparts.

Retiree discount

Several auto insurers offer between 5% and 15% premium reductions to drivers who have retired or reached senior age.

Marital status

Some car insurance companies also give lower rates to married couples compared to those for single policyholders.

Graduated license discount

Drivers who progress through the graduated licensing system can receive a rate reduction of 10% on all coverages if they have no chargeable convictions or at-fault accidents when entering Level Two (Class G2 license). The same applies to motorists who become fully licensed (Class G license).

Good student discount

Some insurers give full-time students with good grades up to 10% discount on car insurance premiums. Parents who have children studying at a university or college away from home can also save on the student’s coverage.

At DPM Insurance Group, our brokers and CSRs are committed to working with you to find you the best coverage at the best possible price. If you’d like to review your current policy to see if we can save you money, contact the office nearest you today: https://dpmins.com/locations/

 

Source: insurancebusinessmag

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