How to Save On Your Car Insurance in Canada

Car insurance premiums in Canada can vary by hundreds of dollars from one company to another. It’s hard to get a good deal on car insurance and even harder to keep your premiums from rising. We are always searching for ways to save so here are some suggestions:

Increasing your credit score – Almost all insurance companies pull a credit report because they see a connection between your credit score and the likelihood of you filing a claim. If you pay your bills in a timely manner and kept the same credit accounts for a while, you seem more stable that those who open and close accounts frequently. This is one factor that helps the insurer determine your insurance rate. You should clean up your credit history as soon as you can to start saving money.

Pay in Full – Not many people are able to pay their insurance annually. The majority payments are set up monthly or quarterly. Insurance companies charge a premium fee to break up the payments and the more you break them down, the more fees you will pay. If you’re able to pay in full, you will save yourself a few dollars, try to pay semi annually if not, try quarterly and if not, stick to monthly. Sometimes if you’re in financial hardship, the few dollars you save is not worth the pain of paying a big lump sum.

Higher Deductibles – When you file a claim, the deductible is the amount you pay before your insurance kicks in. The higher your deductible, the lower your premium so if you’re increasing your deductible from $500 to $1000 on collision, you can save yourself 30% or more. This means that if you had to file a claim and the claim was for $2000, you will have to pay the first $1000. If you have an older vehicle, it may not make financial sense to pay premiums for collision and comprehensive coverage, especially if the value of your vehicle is under $1000.

Buy a low profile car – Cars that have a high theft rate like a Honda or are expensive to repair have higher insurance rates. Prior to purchasing a car consider all the facts about the vehicle. Also keep in mind that many insurers give discounts for safety features such as car alarms, antilock brakes and air bags.

It’s always a good idea to maintain a relationship with your insurance agent or any creditor for that matter.

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