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Reassess Your Auto Insurance Policy

Just like a smoke alarm, everyone should take a close look at their auto insurance policy every year, to make sure it’s working for you the way you need it to.

Because it’s illegal to drive in Canada without auto insurance, it should come as no surprise that these are one of the most purchased types of insurance. What does come as a surprise to many drivers, even those with long-time experience, is that the premium they pay is not a permanently set price. There are a number of variables considered calculating the price of your auto policy, and if one or more of those factors change, that can raise the price… but it can also drop it.

At DPM Insurance Group, we suggest clients reassess their auto insurance policy each year just before renewal, or when there has been a change in their personal situation that will affect the price they pay, as well as their coverage. Below are a few examples of situations where it would be wise to reassess your policy:

  1. Vehicle Type: The type of vehicle you drive will affect the price you pay for insurance. For instance, the cost of car insurance for an expensive and high-performance sports car will be much higher than for a traditional family car that is used to do local errands and such. It is crucial to inform your insurance provider if you get a new vehicle. The history, make, model and year of the vehicle will all affect premiums. As well, if you buy a fuel-efficient car such as a hybrid, you should be able to get a discount on your car insurance.
  2. Driving History: If you have a history of traffic violations, speeding tickets, and accidents, you will be assessed as a high-risk driver and pay more for your policy. However, if you clean up your record and maintain a good driving record, after a specific number of years, the penalties will be removed from your record. If you have restored your driving record, you should contact your insurance provider and ensure they are aware, because you might be eligible for a lower rate.
  3. Personal Life Changes: Statistics are used to determine the price of a policy. Because research has shown that married people with children tend to have lower incidents of accidents because they drive more carefully, if you have recently married, you should check with your insurance provider to see if you can get a better rate. As well, you should contact your insurance company if you get a divorce or your spouse dies.
  4. Where You Live: The location of a driver will affect the price they pay for their insurance. For instance, more densely populated places that have a high crime rate will be assessed as high risk so people living in these areas will pay higher premiums than people living in more rural and low crime areas. If you have recently moved from a city to a rural area, or even to a quieter and less populated residential community, you should contact your insurance company to see about getting a discount. As well, if the security factors have changed such as you now park your car in a garage at night instead of on the street, or you have recently installed anti-theft devices, you should contact your insurance provider.

Insurance companies rely heavily on research and statistical data to set their policy rates. Because car insurance is something we all must have in order to drive, it is always beneficial to take steps to reduce costs. As well, it is important that we all have the proper coverage. To reduce costs and avoid financial hardship, people should reassess their policy at least once a year.

The brokers and CSRs at DPM Insurance Group are here to help. Contact the office most convenient for you today: https://dpmins.com/locations/

 

Source: Canadian Underwriter

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Blenheim Office

24 Marlborough St. N., Box 479
Blenheim, ON N0P1A0

Phone: 519-676-8159
Fax: 519-676-0020

Chatham Office

250 St. Clair St.
Chatham, ON N7L 3J9

Phone: 519-352-4343
Toll Free: 1-800-561-4949
Fax: 519-352-6484

Essex Office

29 Talbot St. N, Box 69
Essex, ON N8M 2Y1

Phone: 519-776-6457
Fax: 519-776-7400

Harrow Office

65 King St. W., Box 790
Harrow, ON N0R 1G0

Phone: 519-738-2277
Fax: 519-738-2279

Tilbury Office

59 Mill St. E, Box 1239
Tilbury, ON N0P 2L0

Phone: 519-682-0202
Fax: 519-682-2391

Wallaceburg Office

403 Wellington St.
Wallaceburg, ON N8A 2Y2

Phone: 519-627-1777

DPM Insurance is a BrokerLink company. The BrokerLink companies are subsidiaries of Intact Financial Corporation (TSX: IFC)