Auto insurance premiums have been on the rise in Canada over the last few years, and Canadians are looking for ways to get the right coverage for their vehicles without breaking the bank. In this day and age, managing finances can be tough. The added financial strain of insurance premiums can be very frustrating! While many factors are outside of an individual’s control when it comes to high insurance premiums, such as location-based increases, there are numerous ways Canadians can save on auto insurance. Keep reading to discover tips on how to save on your auto insurance premiums!
1. Bundle Your Home and Auto Insurance
If you are currently working with more than one insurance company for all your policies, it’s time to bundle! Take advantage of the discounts that are available to you by bundling your home and car insurance under one insurer. By bundling your policies, you will be eligible for a discount and it will make your life a little easier. If you own more than one vehicle, consider bundling your auto insurance under one policy. Adding a second car to your policy will trigger a multi-vehicle discount, which can further decrease your auto insurance rate.
2. Be Cautious On The Road
Distracted or careless driving can increase the risk of tickets and accidents, both of which can hike up your auto insurance premium. Obeying traffic laws and being alert on the road can help preserve your current rate. If you have a good driving record, your insurer might even be able to lower it. Many insurers even offer telematic discounts that can monitor your driving. These devices collect data of your driving behaviour and can also lower your car insurance premium by 30%. Speak to your broker about adding this to your policy!
3. Purchase A Car That’s Cheap To Insure
When you’re shopping around for a car, you often asses the quality of the drive, safety features and the price of the vehicle. However, when you’re looking into purchasing a new vehicle, make sure to also look into your insurance premium. Talk to your insurance broker about which car models will increase your insurance rate. Similarly, if your car is an older model, it might be time to reassess your current coverage. If your vehicle’s value has depreciated to an acceptable level, talk to your insurance broker about deleting certain coverages on your policy that may be unnecessary for your car.
Even more, consider adding winter tires to your vehicle during the winter months. Winter tires are not just necessary for your safety but can help you save on auto insurance. If you decide to install winter tires during the winter months, make sure to inform your insurance broker to receive a discount.
4. Stay On Top Of Your Payments
Also important for your insurance policy, regular payments are essential for maintaining your current auto insurance rate. If payments are missed, your insurer might cancel your policy and your new insurance company may charge you more. To avoid an increase in your insurance rate, pay your premiums on time and avoid missing a payment. Furthermore, two or more non-payments in the last 3 years will exclude you from getting monthly payments. This means that your insurance broker will have to ask for payment in full.
5. Take Advantage Of The Good Student Discount
Students often receive the shorter end of the stick when it comes to their auto insurance premiums. Young and new drivers tend to receive a higher auto insurance premium. Yet, there are still ways for students to minimize their auto insurance premiums. Students who receive good grades may be eligible for a good student discount. To receive the discount, students must be a licensed driver and receive a grade of A average or 80% plus. A copy of the student transcript or report card must be received. The discount will remain until the student is deleted from the policy or turns 25 years of age. Talk to your insurance broker if you believe that you are eligible for a discount!
6. Vehicle Use Matters
Whether you’re a commuter, or a business owner, how you use your vehicle can impact your auto insurance rates. When considering job opportunities, or your home’s location, think about your vehicle’s use to save on auto insurance. If possible, consider finding a job closer to your home to avoid commuting long hours every day. Also, keep in mind that commercial auto insurance premiums can be more pricey than personal auto insurance. Make sure you notify your insurance broker if your vehicle use changes to be properly protected.
7. Marital Status Can Help You Save
Who knew tying the knot could help you save on your auto insurance? Young males under the age of 25 years old who are married or in a common-law relationship receive lower auto insurance rates than their single counterparts. If you are in a common-law relationship or are planning on getting married, make sure to inform your insurance broker!
8. Get Your G License
The sooner you can get your G license, the sooner you can save on your auto insurance. While obtaining your G license can seem like a tedious task, you’re missing out on an opportunity to lower your auto insurance premium. Similarly, consider signing up for a driver’s training course, which can also lower your auto insurance premium if you’ve been licensed for less than 3 years.
9. Moving Provinces? What You Need To Know
If you’re moving to another province, or you recently relocated to Ontario, be sure to bring your experienced letter from your previous insurance company and driver’s abstract from your jurisdiction to help prove your record. These two documents can work in your favour when signing up for a new insurance policy.
10. Steer Clear Of License Suspensions
Your driving record can significantly influence your insurance premium. While you’re on the road, make sure to avoid any traffic violations or speeding tickets that can get your license suspended. If you have had your license suspended, insurance companies can consider you as a high-risk driver, which can hike up your auto insurance rate.
11. Avoid Insurance Lapses
Whether your policy was cancelled due to a non-payment, or you chose to cancel your policy if you don’t drive your car anymore, a lapse in insurance can lead to an increase in your auto insurance when you sign up for a policy again. If you missed a payment or did not renew your policy in time, make sure to contact your insurance broker immediately. Certain lapses are rateable on your automobile policy.
How We Can Help
Keep your most prized possessions protected, without breaking the bank. Our team at Keller & Associates can help you find the right coverage for your vehicle, with an insurance premium that fits your financial needs. Contact us today! If you currently have a policy with us, talk to us about your current insurance premium and how you can save! Curious for more insights on your auto insurance? Check out our blog on why auto insurance premiums are rising!
