Mar 3, 2022
Best Tips To Save On Car Insurance
People love to save money. Don’t you? We’ll drive across town to save a few bucks on fuel, we bundle our phone & cable, use loyalty cards, and scour the weekly grocery flyers to find the best deals.
But when it comes to saving on car insurance in Canada most people don't take action. They let their policy renew automatically, they fail to compare options, as a result, they are missing out on savings.
With premiums on the rise, it has never been more important for drivers to find ways to save money. Want to save more on your car insurance? All drivers do! We have all the best savings tips to help you lower your costs.
Here Is Our List Of The Top 45 Tips To Save On Car Insurance
Saving is much easier than you think. With these tips you could save hundreds every year!
1) Compare Quotes
Just like the well-known real estate mantra for home buyers and sellers is location, location, location, when it comes to saving on automobile insurance, one of the most important things you can do is compare.
If you’re only getting one quote from a single insurer, what are the odds that it’s the lowest price out there?
2) Get Savings Advice From An Insurance Expert
Working with an advisor is a great option to save on car insurance in Ontario and other parts of Canada. They are insurance experts who work for you. It's their job is to help you find the best prices from the companies they work with.
They can help you compare options, make sure your coverage meets your needs, and provide expert advice. They are your advocate when dealing with insurance companies.
3) Bundle Up
Do you drive? Rent or own a home? Then you can benefit from a home and auto insurance bundle. Combining will immediately qualify you for savings between 20% on auto and 50%. Ask your insurer for more information about how to combine your policies.
4) Sign Up For Usage-based Insurance
These are Usage-based insurance or telematics programs that reward good drivers.. They monitor driving habits such as quick acceleration, hard braking and the time of day you drive.
Typically you receive a 10% discount as soon as you sign-up. And depending on your driving habits, you can save as much as 30% when it comes time to renew. These programs are great for all good drivers but young drivers and new drivers can really benefit as it helps them build insurance history much quicker.
5) Increase Your Deductible
Insurance deductibles and costs are directly linked to each other. By raising your car insurance deductible your premium will decrease. Depending on how much you increase your deductible, they can drop by as much as 15% to 30% on your collision and comprehensive coverage.
6) Remove Unnecessary Coverage On Older Vehicles
With the diminishing value of an aging vehicle, you’ll want to determine if the deductible you’ll pay in the event of a claim and if what you pay is worth it.
7) Install An Anti-theft Device
One of the reasons insurance costs are more in Ontario, is because auto theft is more prevalent than in other provinces in Canada. Having an anti-theft device will help lower your costs and make your vehicle less of a target for thieves.
Whether you have a high-tech alarm system that shuts down your fuel pump or starter motor, or a lower-tech visible “club-like” theft deterrent, you will qualify for a savings.
8) Choose A Vehicle That Is Less Likely To Be Stolen
The vehicle you drive impacts your rates, particularly if it is frequently targeted by thieves. How often is your make and model of car is stolen? According to the Insurance Bureau of Canada (IBC), “How often your make and model of car is stolen is one of the factors insurers use to set your insurance premium.”
9) Drive Less
If you only use your vehicle to drive short distances, for example, 5 km or less back and forth to work, you should be paying a lower amount than someone driving the same vehicle further for their daily commute. Talk to your advisor about how much you drive to see if there is a low mileage discount available.
10) Ask About Discounts
There are many types of discounts available. Car insurance discounts can vary between providers so ask about the discounts you may be eligible to receive.
11) Invest In Driver Training
Insurance is much more expensive for new and young drivers who don't have a lot of driving experience or a history as an insured driver. Taking a Ontario Ministry Of Transportation approved drivers training course will qualify young and new drivers for additional savings.
More importantly, it will teach you how to become a safe and effective driver and establish good driving habits.
12) Keep A Clean Driving Record
Keeping a clean driving record is one of the best ways to keep your costs down. If you have traffic tickets on your record or have been involved in an at-fault accident, you can expect your costs to increase at renewal time.
Drive safe – avoid distracted driving, obey all traffic signs and rules, and stay home if road conditions are poor.
13) Choose An Insurance Friendly Vehicle
The type of vehicle you drive impacts your costs. More expensive and rare vehicles cost more to insure. For example, you can expect to pay more for a luxury sports car than a sedan or SUV.
If you are in the market for a new vehicle, consider premium costs as part of your decision making process. Insurance friendly vehicles have great safety ratings, are less prone to break downs, and are not common targets for thieves. Find out the cheapest cars to insure.
14) Go With A Green Vehicle
15) Multiple Vehicles
Do you have multiple vehicles in your household? Save up to 10% for combining all vehicles under the same policy. This means each vehicle insured will save up to 10%.
16) Use Winter Tires
Using winter tires makes driving safer. It provides drivers with better traction, helps them stop quicker and more effectively in snowy conditions, gives you peace of mind. Get up to 5% for using winter tires.
17) Pay Your Premiums In Full
Paying your premium in full rather than paying monthly or quarterly will save you money. Insurers charge an administrative fee to process monthly payments. You will not pay this fee by paying in a lump sum.
18) Drive A New Car
Did you know you can qualify for a discount for driving a new car? When you purchase a new vehicle that is less than 3 years old you can save up to 10%. Some restrictions may apply.
19) Senior Drivers
Are you a senior? Recently retired? Over 50? Most insurers offer discounts to retirees, seniors, and mature drivers over 50 with good driving records. In some cases you could pay up to 10% less.
20) Be A Loyal Customer
Insurers like loyal customers. Customers are rewarded when they renew each year with the same insurer. The longer you are with the company, the greater the savings.
21) Study Your Way To Insurance Savings
Are you a full-time student between the age of 16 and 25? If you have good grades, you may be rewarded with savings of up to 10%. You may need to provide a report card or transcript to qualify.
22) Stay Claims Free
Remaining claims free is important to capitalize on savings. Be strategic about filing smaller claims. Considering your deductible amount, does it make sense to file a claim and risk an increase? Always assess your options before deciding to file a car insurance claim.
23) Out of Town Students
Do you have children that are away for college or university? Make sure to notify your insurer. If they are listed on your policy, you can save up to 30% while they are away studying.
24) Alumni Or Professional Associations
Many post-secondary institutions and professional associations offer lower group prices for their members or alumni. If you are part of a professional group or graduate of a post-secondary institution, you pay qualify for a group rate.
25) Review Annually
Insurance policies typically last for one year. A lot can change in a year. Reviewing it each time it comes up for renewal is an opportunity to assess your needs, find new discounts, and adjust your policy to cut costs.
26) Graduated Licensing For New Drivers
We all know that young drivers pay the most for insurance. Even without a full licence, there are savings available as new drivers graduate through each level of the graduated driver's licensing program. You can save 10% when you move from your G1 to G2 and another 10% when you get your full G license. Get your full license as soon as possible to pay less.
27) Make Sure Your Information Is Accurate
Costs are determined based on the information you provide. Always review your policy to ensure the details about your driving history, vehicle, and personal information is correct. An error could cost you more money.
28) Don’t Over Insure
More is not always better when it comes to insurance. You can have too much and it cost be costing you in the form of higher payments. Some types of coverage may not be applicable to you and increasing your limits too high may not make financial sense. Make sure you have the right amount for your specific driving needs.
29) Park In The Garage
Parking in a garage or a private driveway as opposed to the street or in a public lot could qualify you for a better price. Parking in a garage keeps your vehicle safe and reduces the odds of it being stolen, a claim being filed for weather damage, or having your vehicle damaged or vandalized.
30) Drive Safe
Focusing on safe driving practices is your best defense to prevent an accident. Pay attention to your surroundings, adjust your driving based on weather conditions, and avoid distracted driving.
31) Avoid Adding Costly Vehicle Modifications
Adding aftermarket parts and car modifications will increase its replacement value, increase repair costs, and make it more likely to be targeted for theft. All of these factors could increase your rate. Think about the repercussions before making changes to your vehicle.
32) Avoid A Lapse In Insurance
Having a gap in your history as an insured driver is not a good thing. Maintain your record as an insured driver as long as possible. A lapse could impact your premiums and make it more difficult to get insured in the future.
33) Consider Installing A Dash Cam
Have you thought about installing a dashboard camera? They are a great safety feature. They can be a valuable asset to have if you were involved in an accident, have your vehicle stolen or targeted as part of an insurance fraud ring.
34) Don’t Automatically Renew
Many drivers simply allow their insurance to automatically renew. While automatic insurance renewals are convenient, you could be leaving money on the table. Policy renewal time is your opportunity to compare options and look for a better price. Don’t pass it up!
35) Location, location, location
Where you live can have a large impact on your coverage. Your province, city, and even your postal code are factored in when insurers determine costs. If you are planning on moving, make sure you consider the impact on your rates as part of your decision.
36) Choose Drivers Wisely
The drivers you include as an occasional driver driver on your policy will influence how much you pay for insurance. Adding new, inexperienced, or bad drivers will increase costs.
37) Improve Your Driving Record
Accidents happen. Drivers get tickets for traffic infractions. It’s common. If you have a couple blemishes on your driving record you can get lower premiums by working to improve your driving record. Avoid getting any additional tickets or being involved in at fault accidents. Once your ticket or accident is due to come off your record, make sure it is removed and notify your insurer.
38) Combine Insurance With Your Partner
Combining households? Moving in with your partner or even a roommate? Why have two separate policies when you can have one? Combine insurance to take advantage of a variety of discounts.
39) Make Updates When Things Change
Whether you are moving, need to add a driver, are getting a new car, or need to update your personal information, updating your policy could result in you saving more.
40) Don’t Miss A Payment
Missing an insurance payment or two could be a costly mistake. Missing a payment is grounds to be cancelled for non-payment. If you are cancelled, you could have issues getting coverage or pay a lot more. Set up automatic payments and always pay on time.
41) Adjust Coverage For Seasonal Vehicles
Have a seasonal vehicle? Drive a motorcycle? What about a recreational vehicle? If you only drive a vehicle part of the year, adjust your policy when it is in storage to reduce your costs.
42) Take A Defensive Driving Course
Even if you are an experienced driver, driver training can still help you lower you insurance. Completing a defensive driving course from an MTO approved driving school could qualify you for a discount.
43) Don’t Switch Insurers Mid Term
If you decide you want to switch insurers, try to do so upon renewal. You will charge a cancellation fee if you want to way to switch before renewal.
44) Go Paperless
Some providers offer customers a lower premium for going paperless. Get your bills and documents online and save.
45) Compare Annually
Each year you have the opportunity to find a better rate. If you compare car insurance quotes every year this will help you maximize your savings.
Talk to your advisor about applying as many of these tips as possible to save more.