Ways to Save Money on Auto Insurance

By on 4-09-2021 in Insurance

There are several articles titled “7 ways to save on car insurance” or “5 tips to a your auto insurance premiums,” but wouldn’t it be awesome to have all of those money-saving tips and deals in one place? A list of auto insurance companies can be found below. This list is a detailed summary of all ways to save money on car insurance in Canada, and it was compiled based on the findings of multiple conversations with insurance agents and analyses of various insurance options. Have a look atĀ SR22 Insurance Form FAQs.

1. Shop around for insurance: Look for, compare, and transfer providers. Since there are several insurance agencies and their price offerings for the same policies will vary greatly, use various online tools and speak with many brokers, as one can only cover a small number of insurance firms.
2. Insurance Bundle: Do you need both home and auto insurance? If you buy them all at once, most companies will give you a discount.
3. Professional Membership: Do you belong to a professional organisation (for example, the Certified Management Accountants of Canada or the Air Canada Pilots Association)? Then you might be eligible for a discount from certain insurance providers.
4. Students: Being a single student can qualify you for a student discount.
5. Alumni: Graduates of some Canadian universities (for example, the University of Toronto and McGill University) may be eligible for a discount from certain insurance companies.
6. Employees and union members: Certain businesses provide discounts to employees and union members.
7. Seniors: Many businesses give discounts to senior citizens.
8. Direct insurers: Have you ever worked with an insurance broker or agent? Since they do not pay an agent/broker fee on each policy sold, buying a policy from a direct insurer (i.e. insurers that operate via call centre or online) is often (but not always) less expensive.
9. Annual vs. monthly payments: Compared to monthly payments, annual payments save insurers money on operating expenses (such as bill mailing) and thereby reward you with lower premiums.
10. Loyalty: Keeping a policy with the same insurer for a longer period of time will result in a long-term policy holder discount.
11. Annual review: Review your policies and coverage every year, as new discounts can be available based on your new life situation.
12. Welcome discount: Certain insurance companies have a “welcome discount.”
13. Calculate your expenses: Knowing how much other customers in your situation pay for insurance will help you find the most cost-effective options.
14. Increase Your Auto Insurance Deductibles: If you think you are capable of incurring higher damages rates in the event of an accident, increase your car insurance deductibles. This is best suited to more seasoned automobile drivers.
15. Being a second driver: Do you just drive a car on occasion? Rather than becoming the primary driver, become a backup driver.
16. Minimal coverage: Do you have an old car that isn’t worth a lot of money? Get the bare minimum coverage allowed by law (mainly liability) with no crash damage (you’ll still be covered if you damage someone else’s vehicle, but not your own).
17. Minimal Coverage: Do you drive an ancient, low-cost car? Then only get the bare minimum of coverage provided by law (mainly liability) and no crash injury coverage (does not cover damage costs for your vehicle)
18. Use your Credit Card: Check to see if your credit card’s policy covers rental car coverage. You can save about $20 a day on Collision Damage Waiver fees by paying with a card that has insurance for rental car cover.
19. Leverage rental car coverage: If you borrow cars often and have an auto insurance policy, you can check to see if your own policy covers the rental car. If this is the case, you can save on all rental vehicle Collision Damage Waiver rates.
20. Rental car rider: If your current auto insurance policy does not cover your rental car, you can usually add it as a rider (policy extension) for $20 to $30 per year. It’s not a bad deal as compared to the $20/day you’d pay to rent a car!
21. Place, location, location: The cost of car insurance varies from one province to the next (e.g. moving from Ontario to Quebec will surely reduce your insurance costs by half). If you travel within a province, you can look for increases in car insurance rates and, preferably, relocate to a province with lower rates (e.g. Burlington, Ontario has one of the highest car insurance rates in Ontario)
CAA member number 22: Members of the CAA: If you belong to the CAA? Some insurance companies, like the CAA, will reward you with lower insurance rates.
23. Vehicle dashboard camera: Invest in a vehicle dashboard camera. Even though installing a dashboard camera does not result in immediate savings (insurance firms do not provide any insurance discounts related to dashboard cameras), it will help prove your innocence in the event of an accident. As a consequence, you prevent unjust rate increases.
24. Driving Course: Taking a driver’s education course is often recognised by insurance companies and will help you save money on your premiums.
25. Getting your driving record in better shape: Do you have a poor driving record? Previously incurred tickets are excluded from your insurance records every three years, and your insurance premiums can be reduced.