Whether you live in Quebec, which has the lowest insurance premiums in Canada, or British Columbia, where the cost of living is out of this world, getting the best cheap car insurance rates from top insurers is on everyone's mind, especially when it comes to renewal time.
If you have car insurance, you know all the hassles it brings. Yes, owning a car comes with a lot of paperwork and is quite expensive. But when you own a car, you have to have insurance to cover all your costs in case of an accident.
As a result, car insurance can be costly. In fact, it's one of the most significant expenses you have once you own a car. But there are ways to reduce your monthly car insurance premium and save a little money in the process. Here are eight tips for saving on your car insurance.
Do you need insurance for renters, homeowners, boats, RVs, and motorcycles? Do you have multiple people in your household who require car insurance? Some insurance providers offer steep discounts for bundling your insurance services, ranging from 5% to 25% off per policy. To find the best bundle for your specific needs, it would be wise to contact insurance brokers.
Insurance should be easy, and, luckily, there are insurance brokers, such as AHA insurance, that make it so. They enable you to compare and find cheap car insurance quotes from various providers to find your best price in a matter of minutes.
Usage-Based Insurance (UBI), also known as "telematics," is a type of insurance policy that is based on your driving habits rather than what the insurance company believes you do (mileage, work or pleasure, etc).
Drivers with UBI policies can save up to 25% on their yearly premiums thanks to advances in technology. UBI is a great starting point for "higher risk" drivers, such as those in big cities, young drivers, and so on, because they can save even more.
Most Canadians are unaware that adding features that improve road safety, such as snow tires or an upgraded alarm system, can lower your premium. However, the rules differ by province.
If you change your tires every winter, save your receipt and tire information for when you call your service provider. Even if you don't use winter tires, but rather all-weather tires (which are different from all-season tires), ask. They might give you a slightly smaller discount if you use them.
Vehicles with excellent crash test ratings and low theft scores that aren't flashy or draw much attention generally have lower insurance rates. Sure, driving a hot red sports car is exciting, but is it worth the premium?
Insurance isn't something you should buy only once and then forget about. If you live in Ontario, for example, you are probably paying some of the highest premiums in the country, with an average annual increase of 3.35%.
Simply put, if you live in a high-competition province, you should shop around. Your premiums may decrease as you age. If you don't have any accidents, your insurance premiums may go down. Your premium decreases as your vehicle ages.
This is not something you can do right away when looking for a new policy, but rather as a preventative measure. If you suspect you will miss or be late with a payment, be proactive and call before the due date.
This may seem contradictory to the previous tip, but depending on the company, staying with your current provider may benefit you more.
When their customers reach certain milestones, some businesses offer attractive loyalty discounts. Check-in every few years, or call them when it's time to renew to see if they have a loyalty discount.
Gaps in insurance history are a significant signal to insurance companies and may result in your premium remaining higher.
Even if you don't have a car for a while, see if you can be added as a secondary driver to the policy of a family member or trusted friend to avoid gaps in your driving history. The more you drive, the less you pay for insurance.
When it comes to finding cheap car insurance, it’s important that you know you’re getting a good deal before you sign on the dotted line. The tips we discussed above will help you do that: they’ll help you shop around, understand your coverage options, and make the most out of discounts and special offers. In the end, you may just find that getting your policy online is the best way to save on auto insurance, and that’s something that every driver should be excited about.