No one enjoys spending more than they need to. The same goes for your car insurance. Just as you would scour the market for the best deals on your groceries or the latest tech gadget, there’s ample opportunity to get savings on your car insurance premiums. It’s about finding the sweet spot where you’re not sacrificing coverage for cost. Let us walk you through several tried-and-true methods to keep more cash in your pocket, all while keeping you covered out there on the open road.
Understand Your Coverage Needs
One of the first steps to lowering your car insurance premiums is to understand your coverage needs thoroughly. Not all drivers require the same level of insurance. For instance, while comprehensive insurance offers wide-ranging protection against fire, theft and vandalism it comes at a higher cost. Collision insurance, on the other hand, covers damages from accidents with other vehicles or objects. Meanwhile, liability insurance, which is often the minimum legal requirement, covers injuries you cause to others in an accident.
If you’re behind the wheel of an older car, the value of that car might not justify the cost of comprehensive or collision coverage. These options, while offering broad protection, could end up costing more than they’re worth if your vehicle has significantly depreciated in value. But if you’re still making payments on your car or it’s a lease, you’re likely required to maintain both comprehensive and collision coverage to protect the investment of the financier or leasing company. This ensures that in the event of an insured claim, the car can be repaired or purchased by the insurance company.
Your living situation and daily environment also play a significant role. If you reside or work in an area with high rates of vehicle theft or vandalism, comprehensive coverage offers peace of mind beyond its cost. Similarly, high-traffic areas increase the risk of collisions, making collision insurance more appealing despite higher premiums.
Increase Your Deductible
The deductible is the amount you pay out of pocket before your insurance coverage kicks in after a claim. Opting for a higher deductible can significantly reduce your premiums. For instance, increasing your deductible from $500 to $1,000 could reduce your collision and comprehensive coverage costs by 5% to 10%.
But before choosing a higher deductible, evaluate your financial stability. Ensure you have enough savings to comfortably cover the deductible in the event of a claim. Without this buffer, you could find yourself in a tight spot financially if you need to make an insurance claim.
Note that your vehicle’s depreciation plays a role in determining the deductible. For older vehicles, where the replacement value is lower, a high deductible may not offer substantial savings on premiums relative to the potential out-of-pocket costs in case of a claim. It’s a balancing act between the car’s value, the cost of potential repairs, and the savings on premiums.
Shop Around and Look for Auto Insurance Discounts
While comparison websites are a great starting point, they don’t always show the full picture. Some insurers may offer exclusive deals or discounts that are only available when you get in touch directly.
Often, there are specific aspects of your driving history or car usage that might not fit neatly into an online form.
Insurance companies provide a wide array of discounts that can significantly lower your insurance premiums. For instance, if you insure multiple vehicles with the same insurer, you may be eligible for a multi-car discount. Plus, installing anti-theft devices such as alarms or tracking systems can also lower your premiums. Those who drive fewer miles can benefit from low mileage discounts, reflecting the reduced risk associated with less time on the road.
Some insurance companies have embraced telematics, which involves installing a device in your vehicle or using a smartphone app to monitor driving habits. Safe driving behaviours, such as steady acceleration and avoiding hard brakes, can lead to discounts on your premiums.
But remember, a cheap premium might not be worth it if getting a claim approved becomes a Herculean task. Look into insurers’ claims satisfaction ratings and reviews. Forums and social media can be goldmines for real customer experiences beyond the official ratings, and local insurance brokers can offer a wealth of information.
Combine Insurance Policies
Bundling your insurance policies can lead to significant savings. Many insurance companies offer a discount if you purchase more than one policy from them, such as combining your car and home insurance. This not only simplifies your finances by having a single insurer but can also reduce your overall insurance costs. The discounts for bundling can vary but often range from 5% to 15% off each policy. It’s worth getting quotes for individual policies as well as the bundled price to ensure you’re getting the best deal.
Lowering your car insurance premiums can be simpler than you think. At Keller & Associates Insurance Brokers, we’re all about making sure you get the best auto insurance deal without the hassle. Operating across Niagara Falls, St. Catharines, and throughout the Niagara Region, we’re your local experts committed to finding you the ideal coverage that won’t break the bank. Connect with us today, and let’s make sure you’re not paying a penny more than necessary for your car insurance.