13.5 Tips on How to save on Auto and Home Insurance in Canada?

Depending on the province you live in, there are different ways you can save on auto insurance. Rates are different between each province and city and may sometimes depend on your age and other factors. In some provinces, you can’t control the costs you’ll pay as they are a part of the public system. This is the case in British Columbia, Manitoba, and Saskatchewan. There are many factors that do have an impact on your car insurance including the vehicle you drive, age, gender, and your location. Basic things like shopping around or bundling auto and home insurance can help you save money.

1. Bundling Home and Car Insurance

You can purchase your home and auto insurance from the same insurance company to get savings. Often if you bundle, you can keep costs of insurance premiums lower when the insurance provider offers a bundle discount. You may have to do some shopping around to find the bundle deals but it’s worth it because it’s also easier to manage policies with one company as opposed to multiple insurance providers.

2. Take the Right Driver Training Course

If you’re a new driver in Canada, the premiums can be higher than average in most provinces. By taking the proper driver training course and passing, some provinces may give you a discount on insurance premiums. This is especially advantageous for new drivers coming to Canada and teen drivers.

3. Consider Usage-based Insurance

There are programs in Canada that gives good drivers incentives. The programs involve monitoring driving habits like how fast a driver accelerates or slams on the brakes. Another consideration is the time of day the driver is generally on the road. When you sign up for it, you often get a 10% discount right away. By demonstrating exemplary driving habits, you can save up to 30% with insurance companies when it’s time to renew. This is a great program for all Canadian drivers but especially for new drivers as it can more quickly help them build up a positive insurance history.

4. Increase Insurance Deductible

If you raise deductibles on your car insurance, your premiums will be less. There are different amounts you can increase the deductible, which can create a drop of up to 30% of collision and comprehensive coverage. The deductible is what you pay “out of pocket” if there happens to be a claim. You can choose between a high or low deductible. A higher deductible means the insurance company doesn’t have to cover as much, which is why your insurance premiums will be less throughout the year.

5. Safeguard Your Vehicle with an Anti-theft Device

One of the things you’re insured for is auto theft so if you add an anti-theft device, the insurance company will see your vehicle as less of a target for being stolen. This will lower your costs. There are different kinds of anti-theft products like high-tech alarms that go as far as shutting down your starter or fuel pump. Event the club on your steering wheel will give you eligibility for savings.

6. Purchase a Vehicle that Brings Savings

There are different types of vehicles, and each can cost your more or less in insurance. If you have a fast, expensive car that’s easy to steal, it’s going to cost you more. There are vehicles that are highly desirable to be stolen so they naturally cost more to insure. Also, fast cars with turbo engines are going to cost more because they have more potential to get into accidents.

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7. Maintain a Clean Driving Record

If you’re able to keep a clean driving record, you can very quickly reduce your insurance premiums. How do you keep a clean driving record? By avoiding getting traffic tickets as they will be on your record. If you’re at fault for an accident, this will cause an increase in your premiums the next time you have to renew. Drive safely and obey the rules of the road. If road conditions are terrible like a blizzard in the winter, stay home to avoid accidents. If you demonstrate a clean driving record for many years, there are deep discounts.

8. Go Green

There are various incentives to driving a hybrid or electric car and one of them is insurance rates. By purchasing a greener vehicle, you can get a discount of up to 10%.

9. Pay All of Your Premiums in Full

If you’re able to pay your premiums upfront, you can save quite a bit. Often, the insurance companies give you an option to pay monthly or quarterly. That may sound great but there are administrative fees connected to this service. These fees don’t apply when you pay for everything up front.

10. Stay Loyal To Your Insurance Provider

Loyalty pays off when it comes to auto and home insurance. When you stick with a provider for all your insurance needs, they will give you every offer they can and work hard to reduce your annual insurance costs. The longer you stick with a provider, the bigger your savings will be through the years.

11. Avoid Claims

Let’s face it, accidents are going to happen but sometimes, you can strategize on smaller claims. If you don’t have any claims, you can take advantage of major savings. Even if you have to pay out for a broken window or a fender bender that was your fault, if you can avoid contacting insurance companies, it might be worth paying out of pocket. Think about your options and the long-term costs before going to your insurance company to file a claim.

12. Review Insurance Policies

Before renewing your home or auto insurance, take a look at what you’re paying for. Your needs may have changed so you can cut out certain costs. You may be able to find discounts that further cut those costs down. You may over insure yourself if you’re not paying attention to the type of insurance you’re being charged for. Some coverage may not apply to you any longer and are making your costs higher than they need to be.

13. Keep On Top of Payments

If you don’t stay on top of paying your monthly expenses for car insurance, the company may cancel your car insurance policy. When you go to renew, you’ll be considered a “high risk” to the car insurance company. This leads to higher premiums.

13.5 Compare Insurance Companies

While we have said it’s good to stay with one insurance company, if they aren’t giving you what you want, you should compare it against others out there. Don’t just settle for the same old rate from the same company. Make sure to check out any other options from different companies. Get quotes and compare. You can easily get free estimates online.

When it comes to insurance, don’t settle for the first option that comes your way. Take charge of your financial security by exploring your options and comparing rates. Check out this comprehensive list of insurance providers.

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Loraine Couturier

Loraine Couturier is a Canadian that has been working as a freelance writer for the past ten years, specializing in topics that include personal finance, medical journals, and the online gaming industry. She is a published author, digital marketing expert and an authority in the fields in which she writes about.