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How To Save Money On Car Insurance: 10 Tips

Owning a car isn’t cheap, but there are ways to save on the car insurance you need. The following tips, compiled by Kanetix.ca, will help you save money and keep your car insurance premiums in check.

1. Pay your premiums all at once rather than in installments
Many insurance companies charge a little extra to cover the cost of administering monthly payments. If you can afford to pay the cost of your annual premiums in one lump sum, you’ll ultimately pay less for your car insurance.

2. Increase your deductibles
Take a look at what your collision and comprehensive deductibles are set at if you have one or both of these optional coverages. Increasing your deductibles from $500 to a $1000 can possibly save you somewhere in the region of five to 10 per cent. Of course, increasing your deductibles also means you’re increasing the amount you’ll have to pay should you need to submit a claim, so make sure you’re comfortable with the deductible you choose and it won’t stretch your bank account.

3. Ask about insurance discounts
Regularly check for available discounts your insurance provider may not have initially offered. Ask for your insurer’s list of discounts because you never know what you may find. Some common hidden gems include:

  • Change your tires seasonally? You could be eligible for a Winter Tire Discount that can save you about five per cent off your premium.
  • Have a student that’s making the grade? A Good Student Discount may be available.
  • Is your student away at college or university? If they only drive the car when home visiting, some insurers offer a Student Away-At-School Discount.

4. Bundle it to save
Most insurers offer discounts to customers who insure multiple items—like a car and home—with them. By having multiple policies with one company, you can often reduce the rates on all policies, and the discounts will often save you in the range of five to 15 per cent. 

5. Don’t wait until renewal time to shop around
A lot can happen in a year. You could buy a new car, move, or your teen driver could get their driver’s licence. As life happens, it’s prudent to shop around. Car insurance rates are determined in part by the type of car you drive, where you live, and the drivers listed on the policy. If any of these factors change, your rate may change too, and there may be other insurers that can offer you a better deal. Don’t wait until you get your renewal notice to compare car insurance quotes, otherwise you could be overpaying for your coverage.

6. Choose your new car with care
When it comes to auto insurance rates, not every vehicle is the same. Some are stolen more often, cost more to repair, or have better safety features which all play a part in how much you end up paying for insurance. Before you buy a new set of wheels, compare car insurance rates first because rates will vary considerably based on the ride you choose. 

7. Encourage new drivers to take a driver’s training course
Auto insurance will probably be expensive for new drivers, but the cost can be minimized by taking (and passing) an approved driver’s training course. The cost of a driver’s training course for young drivers is often recouped in the first year of having car insurance, and typically benefits new drivers for three years so long as they stay free of tickets or at fault collisions.

8. Consider a usage-based insurance program
If you're like most Canadians, you may not be familiar with usage-based insurance (UBI). Basically, it's a device that you plug into your car that monitors your driving habits. If you join a usage-based program (which many insurers offer) you can typically save five to 10 per cent just for signing up, with additional savings of up to 25 per cent for good drivers. The device itself is free and the information gathered from it can only help you lower your rate; it cannot be used to increase your premiums.

9. Drive carefully
Your driving record is a big player when it comes to the insurance rate you pay. Tickets and at fault collisions can affect your premiums for years to come. Tickets affect your insurance rates for up to three years and accidents stay on your record for at least six.

10. Compare rates for the best deal on car insurance
Like anything else you buy, you have to shop around to get the best deal and save money, Kanetix.ca can help you find those savings. On average, Kanetix.ca customers save $750 on their car insurance. Kanetix.ca shops the market for you; no one else covers as much of the market. It’s quick and easy to get quotes for your coverage from the top providers all in one place. Compare car insurance quotes today for a better price.