Whenever you think of monetary planning to curtail costs, the good old advice from financial experts clicks in your mind – ‘saving money is earning money’. While applying this concept to plan your household expenses, it’s easy to overlook hundreds of extra dollars you have been paying on your car insurance premiums.
Car owners in Canada often fret over expensive insurance premiums. To help you keep your policies affordable, we have come up with these tips on getting cheap car insurance.
If you are yet to consult an insurance broker, we would recommend you reach out to Surex. Visit surex.com/Insurance/auto-car/calgary to compare quotes from multiple insurers. The experts can recommend the most affordable policies from top insurers and help you slash premiums.
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How expensive is car insurance in Canada?
Depending on your provincial norms, you might be shelling out anything between $1,300 and $1,800 annually as your automobile insurance premiums.
Before helping you with cheap car insurance tips, let’s look at the average premiums in different provinces.
In British Columbia ($1,832), Ontario ($1,528), and Alberta ($1,316), car owners shell out the highest premiums. Quebec ($717), Prince Edward Island ($816), and New Brunswick ($867) attract the lowest insurance rates.
Provinces like Nova Scotia ($891), Manitoba (1,140), Saskatchewan (1,235), and Newfoundland ($1,168) involve moderate insurance rates.
In British Columbia, Manitoba, and Saskatchewan, drivers must purchase public car insurance policies from the government. Car owners in these provinces repent shelling out high premiums. In Quebec, auto insurance follows the hybrid model, and the premiums are the cheapest. While owners need to purchase the mandatory policy from the government, they can go for the optional policies from private insurers.
In the remaining provinces, car owners are free to narrow down their options from several private players to keep their premiums moderately low.
Keep your premium low with these car insurance tips and tricks
Explore these car insurance tricks and tips so that you don’t repent shelling out high premiums.
1. Shop around
Well, you love bargaining on apparel, electronics, and gadgets. Why not shop around several insurance providers when it comes to covering your car? Shopping around is one of the best tips on getting cheap car insurance.
Rather than settling with the first insurer you come across or renewing your coverage with your existing provider, explore the cheapest policies with the same features.
Depending on your profile, different insurance companies provide the same coverage features at different rates. Why not take advantage of their criteria and make potential savings?
However, obtaining quotes from dozens of insurers turns out to be a time-intensive affair. Consider reaching out to an insurance broker to compare quotes instantly.
2. Choose an insurance-friendly model
The risk profile of the driver as well as the car, determines insurance premiums. Are you planning to purchase a sports vehicle or a luxury car? Be prepared to fork out high premiums!
Your insurance premiums are a recurring expense. So, ensure adequate foresight on how you plan to curtail premiums. Economy cars, sedans, and models that don’t attract carjackers lower your risk profile.
Top insurance providers in Canada consider historical data to evaluate the risk profile. For instance, cars that frequently get stolen attract high premiums. Again, insurance premiums for minivans are surprisingly lower. Insurers believe that families carry cargo in these cars and consider them extra-vigilant.
Check out the CLEAR table of the Insurance Bureau of Canada to discover car models having low claims. Being tactical with your choice of model can keep your premiums low.
3. Review your deductibles
Depending on your expertise at the wheel, it pays to review your deductible every year. Paying higher deductibles translates to lower premiums. This is because you would be bearing more costs when you file a claim. So, if you are confident in your driving skills, why not raise your deductible from $200 to $1,000? This can help you save around 30% to 40% on insurance premiums.
However, make sure to put aside adequate funds if you raise your deductible. If you decide to file a claim, you must pay the amount upfront before your insurer compensates for the rest of your loss.
4. Bank on discounts
Talk to your insurance broker about special discounts and rebates from top insurers. From time to time, insurance companies roll out these benefits. For car owners, keeping track of all these offers might be a challenge. This explains why you need to count on reputed brokers. To give you an idea, insurers offer the following types of rebates to car owners.
- Vehicle safety discount: Integrating your vehicle with the latest safety devices like airbags, anti-lock brakes, and GPS tracking can qualify you for a discount.
- Multi-car discount: How many cars do you have in your household? If you insure two or more cars under the same policy, your insurer would reduce the overall premium.
- Good driver discount: Insurers habitually reward responsible drivers. If your driving record looks neat, without any accidents in the last few years, your insurer might offer you a discount of up to 40%.
- New car discount: Have you purchased a new car in the last three years? Check out whether you are eligible for a new car discount. This generally ranges between 10% and 15% on your premium.
- Student discount: If you are a student, you might be worried about high insurance rates. Well, being a student can also fetch you a decent discount on your auto insurance premium.
Before we wind up, check out these additional tips on getting cheap car insurance.
- Bundle your home and auto insurance policies to qualify for a discount on both.
- Pay your premiums annually rather than monthly.
- Undergo a defensive driving course to keep premiums low.
- Install winter tires to be eligible for up to a 5% discount.
- Switch to usage-based insurance if you are a young driver.
Consult a reputed insurance broker if you are not happy with the premium you are currently shelling out. Utilizing their industry contacts and resources, the experts would recommend affordable policies from top insurers.