- Helping you drive happy

Reduce the cost of your car insurance: 6 tips

There are a number of ways that you can reduce the cost of your car insurance. First and foremost, your driving record is highly influential in determining your insurance premiums. It’s important to keep that in mind and drive carefully at all times! If you want to avoid high insurance premiums, keep in mind that your insurer aims above all else not to receive claims from you and have to indemnify you. If you represent a risk for your insurer, they will increase your premiums accordingly. By the same token, if you have a good driving record, this will keep your premiums down

Here Are Six More Car Insurance Tips to Help You Reduce Your Premiums:

  1. Increase your deductible. If you commit to taking on a higher percentage of the initial costs in the event of a road accident, your insurer will take that as a reassuring gesture! Ask your insurer to present you with different options for deductibles, and compare the insurance costs associated with each one.
  2. Install an antitheft or ignition interlock system that is approved by Transport Canada. Your insurance company can likely provide you with a list of systems approved for use.
  3. Insure your car and home with the same insurer. Insuring both your home and your car – or cars, if you have more than one - with the same insurance company can help you reduce the cost of your car insurance. Most insurers can offer an additional discount in such cases.
  4. Use your car less. Insurers take into account the distance you drive on average every year when calculating your premiums. If it’s practical to do so, why not opt for the bus or the subway to commute to work? You will reduce your fuel consumption as well as your insurance costs, and help out the environment to boot!
  5. Make sure your insurance is for the right car.  Every vehicle has its own unique identification number, and the type of vehicle you drive can strongly affect your insurance costs.
  6. Research the vehicle you’re going to buy. Different vehicle types, makes and models entail different insurance costs. Your insurer can inform you about insurance costs for any vehicle model.

In addition to taking steps like these, carefully reading and understanding your car insurance contract can help you choose the best insurance products for your needs. Keep in mind that insurers must always advise you about ways to reduce the cost of your car insurance. If you are on a tight budget, tell your insurer. Your broker, agent or insurer can help you lower your premiums.