Auto insurance is one of the expensive aspects of owning and driving a car. There is a strong possibility, though, that you are actually paying more than necessary for the coverage that you maintain on your vehicle. Here is what you can do to lower your auto insurance rates and save money in Ontario.
Own a lower profile car
The cost of insurance is partly determined by the kind of car that you own. Some cars are prominent targets for auto theft. Others are more expensive to repair. These kinds of vehicles tend to cost more to insure.
Be a safe driver
Being a safety-conscious driver can save you money. If you have no traffic violations or accidents, then you can qualify for extra discounts. Graduates of Ministry of Transport-approved driver instruction courses receive a discount. Having safety features such as airbags, automatic seat belts and anti-lock brakes will also lower your rates.
Raise your deductible
Raise the deductible on your auto insurance policy -- especially if you’re a safe driver. The higher you set your deductible, the lower the premium you’ll be charged. Yes, you run the risk of having to pay for damages to your vehicle out-of-pocket if you have an accident, but the savings on your premiums can be as much as 15 to 30% annually.
Low-mileage discounts
Some auto insurers offer discounts to motorists who drive less than a pre-determined number of kilometers. Try to qualify for these low-mileage discounts. If you live in the suburbs, organize a carpool with other drivers who want to lower their premiums. Drivers who lease cars are well-placed to obtain a low-mileage discount since the lease agreement often sets a maximum number of km per year.
Ask about anti-theft device discounts
If your car has an alarm system that disables your ignition or shuts down your fuel pump, you may be eligible for a discount. Some auto insurers provide discounts for visible theft deterrents such as "The club".
Drop collision coverage on older models
Sometimes it's not worth buying collision coverage if your car is not worth much at the outset. If you’re driving a clunker, the money you receive on a collision claim might be far less than what you paid for collision coverage over just a couple of years. One rule of thumb is that if a vehicle is worth less than $3000, it’s not worth buying collision coverage for it.
Tell your agent about better deals
Auto insurance is a competitive market, so be sure to comparison shop. As you talk with your agent about various options, let the agent know of a better deal you’ve been 6ffered by another insurer.
Bundle your policies
Consider bundling your insurance policies with one insurance company. If you require home insurance, ask if you can receive a discount for getting coverage for both your house and your vehicle with the same insurance company.
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