Know the rules governing auto insurance to keep rates affordable
Buying auto insurance is one of the responsibilities that come with owning an automobile. As such there are some important points to keep in mind that may impact your wallet and your insurance reputation.
First off, there are a number of issues that may compromise what you pay and have an impact on your driving record — the most notable being a record of driving over the legal alcohol limit and being at fault for a collision.
Another important matter that can have a serious impact is cancellation of your auto insurance policy because you have failed to meet your financial obligations. To that end, it’s important to keep a close eye on your personal accounts and transactions.
There are methods to ensure your auto insurance particulars are managed in a responsible manner. It’s a good idea to sign up for email renewals and updates to avoid any confusion and ensure your automatic withdrawals are being processed appropriately. Missing insurance payments can have big impacts on your credit score. This may seem obvious enough, but those automatic withdrawals have a way of hiding in the back of your mind, especially if you’re moving or changing financial institutions.
Managing payment of auto insurance premiums is an area requiring personal responsibility and one that requires timely action if a problem develops. As with any financial agreement, if there aren’t sufficient funds in your account to make a monthly payment, ICBC will apply a service charge to your payment. A second attempt to withdraw a payment will take place three days later. If the amount is still outstanding the following month, an attempt will be made to withdraw two payments plus the service charge. If that third attempt is unsuccessful, you will find yourself in default of your payment plan and if you continue to carry an outstanding balance due, ICBC may terminate your optional coverage.
If you’re unable to meet your monthly payment obligation, call your insurance provider to suspend your coverage. It’s important to remember that every province has its own auto insurance rules, so researching those rules and auto insurance providers is important — and should occur before making any move from one province to another.
If, as an example, you are moving to B.C. from another province, there is a 30-day window to register, license and insure your vehicle. There is also a 90-day time frame for you to acquire a B.C.’s drivers’ licence.
ICBC offers insurance discounts for claim-free new residents but, as a matter of course, always research your insurance provider for discounts and savings — and talk to a broker to find out what you may be eligible to pursue.
ICBC offers discounts and savings for experienced drivers, but for other factors as well:
If your vehicle is equipped with anti-theft devices, you may be eligible for savings or a deductible rebate.
Seniors’ savings are available if you are over the age of 65.
There are fleet discounts available if you insure five or more vehicles for business or commercial uses.
You may qualify for a discount if you’ve been approved for a fuel tax refund under B.C.’s Fuel Tax Refund Program for Persons with Disabilities.
You may also wish to research insurance premium discounts offered through third-party insurance providers for electric or hybrid vehicles or those that are fuel-efficient.
The final point may be the most obvious, but the best way for you to keep your premium at its lowest level is to drive safely.
Simply put, distracted driving, aggressive driving and at-fault collisions will mean points, penalties and increased premiums, while safe drivers are rewarded over time with lower premiums.