Car insurance is an important aspect of owning a vehicle in Canada, as it provides financial protection in case of an accident or other covered event. However, the cost of car insurance can be a significant expense, and many drivers are looking for ways to reduce their premiums. In this blog post, we’ll explore some strategies for lowering your car insurance costs in Canada, with examples to illustrate how these strategies can help you save money.
Table of Contant
Shop around for the best rates
One of the best ways to reduce your car insurance premiums is to shop around for the best rates. Each insurance company sets its own rates, and the prices can vary widely between companies. By comparing quotes from multiple insurers, you can find the company that offers the best coverage at the lowest price. For example, a driver living in Ontario can expect to pay an average of $1,500 per year for car insurance. However, by shopping around and comparing quotes, that same driver might be able to find a policy with a premium of only $1,200 per year. That’s a savings of $300 just by spending time to research and compare rates.
Raise your deductible
Another way to reduce your car insurance premiums is to raise your deductible. The deductible is the amount of money you pay out of pocket before your insurance kicks in. By raising your deductible, you are effectively taking on more of the risk in case of an accident, which can lower your premium. For example, if you have a $500 deductible and your premium is $1,200 per year, raising your deductible to $1,000 could lower your premium to $1,100 per year.
Bundle your car insurance with other types of insurance
Many insurance companies offer discounts for customers who bundle their car insurance with other types of insurance, such as home insurance or life insurance. For example, if you have both your car and home insurance with the same company, you might be able to get a discount of 10-15% on your car insurance premium.
Consider a usage-based insurance plan
Usage-based insurance (UBI) is a type of car insurance that uses telematics technology to track your driving habits and adjust your premium based on your behavior. For example, if you are a safe driver who avoids sudden braking, excessive speeding and drive mostly during the day and less during the night, your premium will be reduced. Some insurance companies in Canada are offering discounts of up to 30% for drivers who sign up for UBI.
Take a defensive driving course
Many insurance companies offer discounts to drivers who take defensive driving courses, which teach you how to avoid accidents and drive safely. For example, if you’re a driver over 55 years old, taking a defensive driving course could qualify you for a discount of up to 10% on your car insurance premium.
Be smart with your car choices
Car choice is another way you can reduce your insurance premium. Certain cars are more expensive to insure because they are more expensive to repair or because they are more likely to be stolen. It’s wise to consider these factors when buying a car and then talk to your insurance agent to make sure you understand any potential impact on your premium.
In conclusion, there are many ways to reduce your car insurance premiums in Canada. By shopping around for the best rates, raising your deductible, bundling your insurance, opting for usage-based insurance, taking a defensive driving course and being smart with your car choice, you can lower your car insurance costs and keep more money in your pocket. Keep in mind that some of these strategies may not be available in your province and it is always good to consult with a professional insurance agent to find the best
