45 Ways To Save Money On Your Car Insurance
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.
Consider this rule of thumb : If your car is worth less than $3,000, you probably want to drop the collision insurance and comprehensive insurance.
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
Driving hybrid car or electric car is not only good for the environment, it’s good for your wallet too! Get a discount of up to 10% for drivers with hybrid or electric vehicles.
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.