10 Tips for Affordable Car Insurance

These tips are no secrets, but they are not common knowledge either. The more you know about how insurance works, the more you will be able to save off your premiums. 




Follow these 10 simple tips and you will undoubtedly not only become a more informed consumer, but you’ll have everything, including the knowledge, you need to know to add to your savings. In this economy, whatever money you can save is a bonus.

1. Drive with caution and care
Your driving record is one of the most influential factors in determining your insurance rate. Tickets affect your insurance rates for up to three years and accidents stay on your record for at least six or seven years depending on where you live! With a bad driving record, you can find yourself paying a lot of extra premium over the years or without an insurance company at all.

2. Drive a “low-risk” car
Insurance rates for cars are based on the previous claims history for that vehicle. The more likely a car is to be stolen or in an accident, the more you pay for your insurance – a known fact. If you are buying a new car, check with the Vehicle Information Centre or compare quotes to see how your dream-car will rate. You wouldn’t want to be stuck with a car that will cost you an arm and a leg to own and drive.

3. New driver? Take a driver’s training course
Licenced drivers who have completed an approved drivers training course in the last 3 years pay lower premiums. Safer drivers always pay lower insurance rates- no matter what.

4. Have an anti-theft device installed in your car
Auto insurance companies recognize that your car is less likely to be stolen if you have an anti-theft device installed in your vehicle. Check to see if your company offers this “Alarm or anti-theft discount” and consider if the price of the device is worth the added savings over the years. If you already have an approved, factory-installed alarm in your car, your insurance company will always take it into account when determining your rate every year.

5. Alternative means of getting work
The more you are on the road, the higher are your chances of getting in an accident. Insurance rates are higher for people who commute to work. So taking the bus or sharing a ride will not only help you save on parking and gas, but will help lower your insurance premiums.
6. Get a quote & apply online
Auto insurance coverage may be the norm in almost every country, but insurance premiums are another story. Coverage from one company to the next can vary by hundreds, if not thousands of dollars. The only way to make sure you are getting the best base price for your policy is to compare, compare, compare and do it online. If you are unsure about something, then you call the company of interest.

7. Make sure all your cars are on the same policy
Many affordable auto insurance companies have something called the “Multi-vehicle discount” for customers who insure more than one car on the same policy. This can bring you savings of up to 10 per cent on all cars.

8. Insure both your car and home with the same company
Many affordable insurance companies have something called the “Multi-line discount”. They offer this savings as an incentive to get your property insurance business too. It’s all perfectly legal and it’s a great way to get another five per cent off your premiums.

9. Increase your deductibles
In a nutshell, the higher your deductibles, the lower you will have to pay your insurance premiums. Insurance was really meant to cover you for damages you could not afford on your own. If you can afford to repair $1,000 of your car damages, then raise your deductibles to $1,000 and pay less for your insurance.

10. Older car? Think about dropping your collision coverage
If your car is getting up there in age, you may want to think about dropping the ;collision coverage’ on your policy. You need to think about this one - it’s not always an easy decision to make. You need to weigh the cost of the collision coverage with the value of your car and your chosen deductibles. For example, if you had a 10-year-old car that was worth about $1,000, and your deductible was $1,000, that collision coverage is not going to any help to you. The affordable insurance company will just write the car off.