Tips to Cheaper Auto Insurance
If you’re like most people, your auto insurance is a recurring expense you’d like to save money on. It’s one of those things that can be easy to overpay for too. So, consider these few insider tips to cheaper auto insurance and see if you can save yourself a bit of cash.
Increase your deductibles
You can likely save somewhere between five and 10 percent on your premiums if you increase the deductible. The deductible is the portion of an insurance claim you pay before the insurance kicks in, so the higher your deductible, the lower your premium. But make sure to think this through because this will be the amount you have to dish out first if you need to submit a claim.
Grocery stores, internet service providers… there are plenty of consumer products and services that give you a deal when you buy in bulk or “bundle” your services. It works the same for insurance too. If you get your property insurance from the same company as your auto insurance, then you’ll save money on your combined premiums.
Your driving record has a direct impact on the rate you pay and one of the simplest things to save you money on premiums. At-fault accidents and tickets add up and might end up costing you hundreds, if not thousands of dollars, over the years it takes for them to fall off your record.
Take an accredited driving course
Young new drivers (under the age of 25) who pass an accredited driver’s training course will be eligible for a discount. The discount generally lasts for three years. That’s because insurance companies know that drivers who are taught by professionals tend to be better, safer drivers and so they reward these young drivers with auto insurance premiums lower than what they would otherwise pay.
Pay your premium annually
Many companies charge a little extra to cover the cost of administering monthly payments. If you can afford to pay your premium annually in one lump sum, you’ll likely pay a bit less for your coverage.
Drop some optional coverages on an older car
It might not make sense to pay for coverage with a $1,000 deductible if your vehicle isn’t worth much anymore. Many owners of older vehicles don’t realize collision and comprehensive coverage that made perfect sense on a new car may no longer be worth it once the vehicle is many years older. You must weigh the cost of the coverages with the value of your car and your chosen deductibles.
Use winter tires
Winter tires are a great way to tackle the winter season safely. In Ontario, having them will ensure you get a discount, usually around five percent. The Ontario winter tire auto insurance discount has been in place since 2016, and all insurers in the province must offer it to drivers who change their tires seasonally.
Ask about discounts
There are loads of auto insurance discounts that can help you save on your coverage. Ask your broker for theirs because you never know how the details of your life could save you money.
Have an academic in the family? There’s the Good Student discount that may be available. Is your child away at a post-secondary school? If they only drive the car when home visiting, some insurers offer a Student Away at School discount. Have you recently joined a roadside assistance program? There’s often a discount for that too.
Keep insurance in mind when buying a car
New or used, what you park in your driveway is one of the factors in calculating your car insurance rate. Cars that are more likely to be stolen, for example, may come with a heftier insurance bill. When shopping for a new car, keep in mind to shop for insurance to find a premium that’s as nice as your new set of wheels.
Find a lower rate if you move
Where you live factors into what you pay, and chances are your premiums will change when you move. However, your insurer may no longer offer you the best rate in your new neighbourhood. Make sure you’re getting the best deal at your new address and compare rates for a lower price once you’re settled.