Simple tricks to save money on auto insurance
Staying safe, communicating and shopping around can save you big bucks when looking for insurance
There’s no way around it: If you own a car and plan on driving it, auto insurance is a necessity, and there are some simple tricks that can lower the cost. The Star reached out to Anne Marie Thomas, an insurance expert at insurancehotline.com, for her top tips on saving money on car insurance.
Give usage-based insurance a try: Interested in insurance discounts of up to 25 per cent? You may want usage-based insurance (UBI).
The technology connects to your car to monitor your driving habits, Thomas explains, monitoring driving behaviours such as speed, braking, acceleration, and the time of day when you’re usually behind the wheel.
While this type of insurance is not for everyone, consistent safe driving can eventually result in lower premiums.
Shop around: “Comparing quotes is probably the best way to lower your car insurance rates,” says Thomas. “If you haven’t compared auto insurance quotes lately, there’s a good chance you’re overpaying.”
Compare rates at least once a year before you renew your existing insurance plan to make sure you’re not paying more money than you need to be.
Be safe: It may seem obvious, but one of the biggest factors insurance companies look at when determining rates is your driving record. “Traffic tickets can raise your insurance rates for up to three years, and accidents stay on your record for at least six,” explains Thomas. “Over several years, a bad driving record can cost you hundreds, even thousands, of dollars.” Communicate: If you swap your allseason tires for winter tires when the temperature began to drop. But does your auto insurer know this is a seasonal habit of yours? Make sure they do and you could save close to 5 per cent on your premium, according to Thomas.
Pay your premiums all at once: This could save you money in the long run. “Many insurance companies charge drivers a little extra to cover the cost of administering monthly payments,” explains Thomas. “If you can afford to pay the cost of your annual premiums in one lump sum, you can avoid those extra fees that are tacked onto your premium.”
Increase your deductibles: This could save you 5 to 10 per cent on your auto insurance premiums, says Thomas. “A deductible is the portion of an insurance claim you pay, so the higher your deductible, the lower your car insurance rate,” she says, adding that it’s important to still keep your deductible affordable, as you’ll need to pay that amount if you submit a claim.
Mix it up: If you are in the market for both home and auto insurance, consider using the same company to save anywhere from 10 to 15 per cent.
“Multi-line is insurance jargon for what might be better described as multi-product,” explains Thomas. “Auto insurance and home insurance are different products, and when you buy them from the same insurance company, they’ll often reward you for bundling.”
Many people think only a home insurance and auto insurance policy qualifies for a multi-line discount, she adds, but snowmobiles, RVs, motorcycles, or tenant insurance can all usually be bundled to qualify, too.