How much do you pay for car insurance every month? If you are like most drivers, then the answer is probably, “Way too much!” The public has been promised by the politicians that they will handle it and guarantee your rates will come down. If you had a dime for every time the officials pledged to lower your insurance premiums, you would have a lifetime of free auto insurance by now.
It is estimated that the average car insurance policy in Ontario costs just less than $2,000 per year. The rest of the country pays an average of a little more than $1,300. The reasons for this disparity vary, but you can take matters into your hands instead of waiting for the government to do something about it. Whether it is taking the subway or becoming a better driver, there are plenty of minor things that you can do to generate bigger long-term savings. In this economy, it is imperative to find any nickel.
So, rather than depending on your MP or MPP, you can take action right now. But how? We have compiled nine tips on how to lower car insurance premiums online:
1. Perform Insurance Price Shopping
When you are looking for a way on how to lower car insurance premiums, it is important to perform some basic price shopping. You would do this for your groceries, and you would do this for a new 60” television.
So, why not for your auto insurance? And it is easy, too, thanks to a wide variety of digital comparison tools at your fingertips. You can find many good car insurance quotes online. Plus, if you contact customer service and you inform the agents you are looking to change insurance providers, you may receive discounts, too.
2. Use the Same Insurance Provider
Do you have home, life, and accident insurance but with different providers? Well, this may be costing you a lot of money in the end. On the surface, you might think you’re saving money. However, many institutions would be willing to match others’ premiums or extend discounts if you merge all your insurance policies under one umbrella. Consult with your auto insurance provider to explore your different bundling options.
3 Drive Your Car Less
How do you reduce the risks of an accident? That’s easy: You don’t drive!
Many insurance providers will reduce your monthly or quarterly premiums if you clock in fewer kilometres on your automobile. By choosing to take the bus into work or going for a walk to the grocery store, you could save yourself some money. It might not be an enormous haul in the beginning, but the dollars and cents add up over time.
4. Reconsider the Type of Car
It would be great to drive a massive SUV or traveling in a luxury sedan. Unfortunately, insuring a top-of-the-line or large vehicle can add to your overall costs. A lot of insurance companies will offer a discount if you choose to purchase a smaller, safer, and low-cost automobile. If you’re in the market for a new car, perhaps it is best to buy or lease a Honda or a Toyota instead of a Tesla or Ferrari.
5. Increase Your Insurance Deductibles
When you are browsing the car insurance market, you generally select a deductible. This is the amount of money you would be required to pay before insurance pays the rest in the event of an accident or theft. You can expect to pay anywhere from a couple of hundred bucks to as much as $1,000. That said, the lower the deductible, the higher the premiums – and vice versa. You could find that raising the deductible, even by a few percentage points, is a sensible decision for your pocketbook.
6. Improve Your Credit Rating
For the most part, a driver’s history is the biggest factor in determining how much a customer is going to pay. The second-most important element? Your credit rating.
Indeed, a lot of customers would be surprised to learn that your credit score/rating plays a crucial part in figuring out your insurance premiums. Therefore, you have two options: do your best to improve your rating or try hard to sustain a high score. Your insurance company is counting on you!
7. Install Anti-Theft Devices
If your automobile is stolen, your insurance company is on the hook for a lot of money. Therefore, a growing number of providers are offering discounts upward of 25% if clients install anti-theft devices. Everything from state-of-the-art car alarms to real-time tracking to find your vehicle, these inexpensive tools can result in both savings and peace of mind that your car is about as hard to steal as a James Bond vintage roadster.
8. Enroll in a Defensive Driving Course
A defensive driving course is a win-win for everybody.
First, insurance companies will provide double-digit discounts for motorists who have completed an approved defensive driving course. Second, the government could reduce the number of demerit points on drivers’ licenses by taking a defensive driving course. Third, you become a better driver.
Every province has its own accredited defensive driving course. So, do your due diligence, contact your insurance provider, and obtain a list of schools and potential savings.
9. Inquire About Discounts
Unfortunately, too many people make the mistake of not contacting their insurance provider about discounts – any discounts – to help cut down on monthly or quarterly costs. They think that they got the best deal or that it is a futile endeavour to ask about discounts. There is nothing wrong with asking.
It is said that telecommunication services will typically provide savings or add-ons at no extra cost for simply saying that you are thinking about changing providers. Why not do the same for your car insurance? Sure, you might need to spend 15 minutes on the phone, but it is worth the hassle!
