Many articles are titled “7 Ways to Save on Car Insurance” or “5 Tips for Lowering Your Auto Insurance Costs”, but wouldn’t it be nice to have all these saving tips and discounts in one place? This is a list of Auto insurance tips and tricks. This comprehensive list provides a complete overview of all savings opportunities for car insurance in Canada. It was compiled through extensive discussions with insurance brokers as well as analyses of various insurance products.
1. Compare and shop around for insurance companies. You can find many insurance providers, and the price of similar policies can vary greatly. Therefore, you should use multiple online tools to compare and speak with several brokers. Each broker will only be able to provide information about a small number of insurance companies.
2. Bundle:Does your home and auto insurance cover you? Bundling them together will get you a discount from most companies.
3. Professional Membership Are you a member a professional organisation (e.g. Certified Management Accountants of Canada (or The Air Canada Pilots Association). Some insurance companies will offer you a discount.
4. Students: A student discount can be obtained by being a student.
5. Alumni: Graduates of certain Canadian universities, such as McGill University or University of Toronto may be eligible to receive a discount from certain insurance providers.
6. Employees / Union members: Some businesses offer discounts for union members.
7. Seniors: Many companies offer senior discounts.
8. Direct insurers: Do you have a history of dealing with agents or insurance brokers? A direct insurer is a company that offers policies directly to customers. Insurers working online or via call-center can often be more affordable than traditional brokers, as they don’t charge an agent/broker commission per policy sold.
9. Monthly payments vs. annual: Annual payments are less expensive than monthly payments. They reward you with lower premiums by sending bills instead of monthly payments.
10. Loyalty: Keeping with one insurer for longer periods of time can sometimes lead to a discount for policy holders.
11. Annual review: If your life circumstances have changed, it is worth reviewing your coverage and policies annually. New discounts may be available.
12. Welcome discount: Insurers may offer a welcome discount.
13. Compare your costs: It is possible to benchmark your insurance costs and find the best insurance provider.
14. Car Insurance Deductibles This is especially useful for experienced drivers.
15. You are a second driver. Instead of being the principal driver, become a second driver.
16. You can drive an old car with little value. You will only get the minimum coverage required by law (primarily liability). However, collision damage is not covered. This means that you are still covered if someone damages your car.
17. You can get minimal coverage if you drive an old or inexpensive car. You will only be able to get the minimum coverage required by law (mainly liability), without collision damage coverage (doesn’t cover damages costs for your vehicle).
18. Use your Credit Card to Get Rental Car Protection. You can save around $20 per day on Collision Damage Waiver Fees by paying with a credit card that offers rental car protection insurance.
19. You can leverage rental car coverage. If you rent cars often and have auto insurance, it is worth checking if that policy covers rental cars. You can save money on Collision Damage Waiver for rental vehicles if this is the case.
20. Rent a car rider: You can add a rental car rider to your auto policy for $20-30 per year. It’s a great deal, especially when you consider the $20/day that you would pay to rent a car.
21. It all comes down to where you live. Car insurance costs can vary from one province (e.g. Moving from Ontario to Quebec can reduce your insurance costs by up to half. You should always check the cost of car insurance if you move within one province. If there are any, it is best to move to a place where they are less expensive (e.g. Burlington, Ontario is home to one of the most expensive car insurance rates in Ontario.
22. CAA Member: CAA Members: Are You a CAA Member? You may be offered lower insurance premiums by some insurance companies, including the CAA.
23. Dashboard camera: Install a dashboard camera on your car. Although installing a dashboard cam does not provide direct savings (insurers do not offer any discount for dashboard cameras), it can prove that you are not at fault in the event of an accident. You can avoid unfair premium increases.
24. Driving Course: Some insurance companies may recognize you as completing a driving class, which could reduce your premiums.
25. Driving record improvement: Are you a poor driver? Your insurance premiums will drop if you have not received any tickets in the last three years.
26. At-Fault Injuries: Are you a victim of at-fault accidents? If you are patient (six years without any accidents), your risk profile can improve and you will be able to enjoy affordable insurance premium rates.
27. Senior drivers have lower auto insurance premiums. Your premiums could drop over the course of several years.
28. Car Make and Model: Carefully choose your car. Some car models are more vulnerable to theft, or have a history with more dangerous drivers (e.g. Insurance premiums for Toyota Camry, Acura MDX and Toyota RAV4 are typically high.
29. Good student: Yes, good grades can have positive effects on your auto insurance rates. E.g. One insurance company offers discounts up to 25% for students under 25 who have good grades and are under 25.
30. Multiple-cars-bundle: Bundle several cars on one policy and your rate can go down
31. Anti-theft systems: Installing an anti-theft certified system in your vehicle can reduce the risk of theft, and may even lead to insurance discounts.
32. Winter tires: Winter tires are important for winter driving safety and can help lower your insurance premiums.
33. Repair costs: Select a car that is more affordable to repair in the event of damage. Some cars, such as the Mini Cooper or BMW, have higher repair costs. Mini Cooper and BMW have higher repair costs than others (e.g. Insurance providers know this and Ford Focus.
34. Claim History: Maintaining a clean claim history can be more cost-effective than filing claims for minor damage repairs, which could lead to higher premiums. Talking to an insurance broker/broker can help you determine what is best for you.
35. Married status: Your insurance premiums will be affected in most provinces, except Nova Scotia.
36. You can commute less distance to work by finding a house near your workplace. This reduces the distance you have to drive each day and lowers your insurance premiums.
38. Drop glass coverage: If you have a car with a low windshield, it may be cheaper to reduce your glass coverage. This is because in addition to the deductibles that will be paid in the event of an accident, you would pay more. Calculating the cost is up to you.
39. Retiree Discounts: Many insurance companies offer drivers different retirement discounts.
40. Disability: There are discounts offered by some companies for those with disabilities.
41. Hybrid vehicles: Many companies offer driving hybrid vehicles with lower insurance premiums.
42. Private Garage: You can park your car in a secure location such as a garage. Private or secure garages usually result in lower auto insurance premiums.