Saving on your car insurance isn’t rocket science; you just need to have the right tips: choosing the right vehicle, negotiating the premium, etc. Let’s take a look.
1. Drive a smaller, older, or more fuel-efficient car
Insurers consider, among other things, the vehicle’s propensity for theft, its sporty design, its safety rating, and more.
Check out the Insurance Bureau of Canada (IBC) website to find out which vehicles might cost you more to insure, such as:
You can also look into hybrid or electric cars, which sometimes allow you to get a discount on your insurance.
2. Install an anti-theft device
Regardless of the vehicle, insurers will generally offer you immediate discounts if you install an anti-theft, tracking, or immobilizer device. Chiseling major components of your car can also lower your premium.
3. Make sure your credit score is free of errors
Before giving you a quote for your car and home insurance, insurers take a look at your credit score.
However, sometimes credit reports contain errors, which could penalize you when calculating your premium.
To obtain this service, free of charge, you must contact Equifax and TransUnion. If you detect errors in your report, have them corrected quickly!
To learn more, read our advice capsule “Is your insurer interested in your credit profile? Don’t panic! “
4. Negotiate and compare before you buy
As with anything, it’s beneficial to negotiate with your insurer, broker, or even shop around for insurance from multiple companies. It’s a healthy process to explore what the insurance market has to offer.
Insurer programs change from year to year, just as your needs evolve over time; and sometimes all it takes is a phone call to get a discount on your premium, or to discover an insurer offering a new, more advantageous policy.
Don’t hesitate to mention your membership in a club, association or professional order: some insurers offer discounts to active members of recognized associations.
Also, by combining your car and home insurance with the same insurer, you could save a lot! In fact, they generally offer a substantial discount to people who insure multiple items with them.
5. Create a tailor-made insurance policy
Evaluate which coverages and riders adequately protect you, and request that any that you consider unnecessary be removed from your policy. The more coverage you have, the more it costs…
Calculate your annual mileage as accurately as possible. Your insurer will take this factor into account when setting your premium. If you have a good risk tolerance, you can also lower your premium by increasing the deductible you pay in the event of a claim. Be aware that if something goes wrong, you’ll have to pay more.
6. Practice safe driving behavior
Distracted drivers, whether by their smartphone or otherwise, cause accidents that increase the number of insurance claims. By adopting safe driving behavior, not only do you help improve your road safety record, but you can also receive a “good driver” discount if you have not had any claims in recent years.
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