10 Ways to Save on Auto Insurance in Canada

Are you paying more for your auto insurance than you think you should? Maybe it's time to renew your policies or you are buying another car. Whatever the reason, you'll have more money for other things when you cut your insurance costs. Here are 10 ways you can lower your auto coverage premiums in Canada, without causing any financial hardship.

  1. Increase Your Claims Deductible Amount

    Now could be a good time to raise your deductible because it will lower your premiums. For example, a $250 deductible will cost you quite a bit more than a $1,000 deductible because your insurance company is assuming more risk. If you have money in savings or assets that can be used, you are probably better off assuming the additional risk and lowering your insurance costs.

    Tip - Has it been several years since you filed a car insurance claim with your insurer? Raising your deductible is a good idea.

  2. Trim the Fat from Your Policy

    In some cases, you are better off dropping collision coverage. For example, you may have an older car that is not worth a great deal of money but it may still run fine. If you accidentally totaled the car, you might receive a thousand dollars or less. Over several years time, you may pay more than this amount for your collision and comprehensive insurance, so it makes sense to drop both coverage options.

    Tip - for older vehicles worth $1,000 or less, you are better off with only mandatory coverage on your automobile insurance policy. However, make sure your liability limits are sufficient. Plus, you cannot drop coverage on a vehicle if you still owe money on it, because it is not officially yours until you pay off the loan.

  3. Combine Insurance Policies

    Did you know you can save as much as ten percent or more on your insurance costs when you insure your home and car with the same company? In fact, the more policies you have with the same insurer, the less you will pay. Don't own your home? Combining auto coverage and renters insurance can save you money too.

    Tip - contact your insurance professional about multiple policy discount programs. Most insurers have home and auto discounts.

  4. Good Driver Discounts

    Did you know that most drivers qualify for some kind of good driver discount on auto insurance and the vast majority don't even know about it? Most insurers have more than one company, and they are rated by risk factors. High risk drivers are insured with the high risk companies and they pay the most. Low risk drivers pay the least with the low risk companies. However, all the other drivers are stuck in the middle and this can create a problem.

    Many drivers in the middle group have driving records similar to those in the low risk group, but it depends on which company they are insured with, as driver ratings are not the same with all companies.

    Tip - Talk to an independent insurance agent who can check with many different insurance companies for you.

  5. Ride the Bus

    You'll pay more for your car insurance when you drive to work each day. In fact, you might save a great deal of money by taking mass transit instead.

    Tip - It might be a little less comfortable, but the money you save on gas and insurance, can make it well worth it.

  6. Think Before You Buy

    When car shopping, check out insurance rates before you sign papers. Some cars are stolen more often and involved in more accidents, and you'll pay much more for automobile insurance with these cars. If you are a young driver, it will cost much more to insure a high performance sports car.

    Tip - Check out the vehicle ratings by visiting the Insurance Institute for Highway website, and get an insurance quote before you buy.

  7. Check Your Mileage

    Do you drive less than one thousand miles (1600 km) per month? You might qualify for a low mileage discount.

    Tip - ask your agent about mileage and discounts.

  8. Safety Device Discounts

    If your car has an alarm system, anti-lock brakes, or automatic seat belts, you may get a special discount on your auto insurance.

    Tip - check to see if you are getting these discounts

  9. Student Drivers

    Good students pay less for car insurance. This is an important discount, as young drivers are expensive to insure. Driver training course discounts are available with some companies also.

    Tip - Check into all available student driver discounts.

  10. Credit Rating and Discounts

    Is your credit in good shape? If so, you might be able to pay less for your automobile insurance. Many companies are seeing the correlation between good drivers and good credit and are rewarding these people with lower premiums.

    Do you have credit problems? You might save money by going with a company that is not interested in credit ratings.

    Tip - When you see an independent insurance agent, you'll have help finding all the available discounts, and the money you save can be significant. Your independent agent can check with many different insurers in Canada to find you the best deals at the lowest possible premiums.