The rate you pay for your automobile insurance is partly based on where you live, drivers in the home, vehicle use, how far you drive to work and annual mileage. It’s important to take the time to review your policy as your coverage requirements will often change as you reach important milestones in your life (marriage, having children, changing jobs, retiring etc).
Deciding on what coverage you require is complicated due to optional coverage that is available under the Accident Benefits section of the policy. So, in addition to the standard decisions you need to make, you must also decide how much additional coverage you may require in case of an accident. It’s important to speak to an insurance broker to ensure you understand your options
The following tips may help you save money on your auto and car insurance:
Take advantage of discounts that may be available to you.
Ask us about Multi-Vehicle; Graduated License; Short Commute; Retiree; Conviction Free; Experienced Driver; Student away from home.
Build a good driving history free of accidents and convictions.
This means driving carefully and obeying the rules of the road. Wear your seat belt and don’t use your cell phone or text while driving. Don’t drink and drive.
Don’t pay for coverage you don’t need.
For example, it may not be cost effective to have Collision or Upset and/or Comprehensive Coverage on a vehicle that is worth less than $1,000, because any claim you make would not substantially exceed your deductible or the annual premium.
Consider higher deductibles.
This means you’ll contribute more toward the loss if you have an accident, but it will also mean a lower premium. For example, a zero-dollar deductible usually applies to your DC-PD Coverage. However, you may be able to lower your auto insurance premium by increasing this deductible.
Make sure you always pay your premium on time.
If you pay your premium by cheque or through automatic withdrawals from your bank account, make sure you always have enough money to cover your payment. If your insurance company is unable to withdraw your payment because you don’t have enough money in the account, it could result in the cancellation of your automobile insurance policy. If your policy is cancelled for non-payment of premium many companies may consider you a higher risk, and you could end up paying much more for your automobile insurance.
Choose the type of vehicle you drive, wisely.
For example, if you buy a vehicle with a high theft rate, your premium will be higher. Choose a vehicle with good security features. Call us to discuss different vehicle premiums.
Make sure you tell us about any changes to your policy (e.g., different drivers, different use of the vehicle)
In some cases, your premium may drop!
Finally, don’t switch insurers mid-way through the policy term.
Wait until renewal time, to avoid penalties for cancellation.
Tips for Young Drivers
As a young driver, here are a few tips on getting the best rate for you:
- Take a driver-training course that is recognized by the Ministry of Transportation
- Consider gaining experience as an occasional driver under the insurance policy of a parent or guardian, rather than as a principal driver of your own vehicle. Premiums for young, occasional drivers are much lower than premiums for young, principal drivers.
- Ask us if there are any student discounts. Some insurance companies give discounts to young drivers with good grades or who live away from home for part of the year while attending school.