When it comes to car insurance in Canada, it's not a nice-to-have asset. It's a legal requirement, and you can face some serious trouble if you're caught driving without an active policy.
With that said, you can absolutely secure affordable auto insurance with the right planning and strategies.
Let's get into what you need to know!
Compare Different Rates
Many consumers falsely believe that staying loyal to a certain insurance provider automatically grants them cheaper rates.
This can be a total myth! Sometimes, the only way to secure affordable auto insurance is by shopping around.
It's a good rule of thumb to get a comparison rate at least once a year. By using an aggravated insurance quote form, you can quickly compare and contrast different policies and their prices.
Be proactive in your searching. Many insurers change rates over time, and just because one company had the best rate last year doesn't mean the same policy will apply this year.
Understand the Coverage You Need
It's important to understand what coverage you need. For example, if you're driving a significantly older car, it may not make sense to pay for comprehensive collision insurance.
Only you can truly define the coverage you need. This will largely depend on your comfort with risk, the type of car you own, and your driving habits and patterns.
Raise Your Deductible
Just like with most insurance policies, affordable auto insurance can be easily obtained if you're willing to raise your deductible.
This will lower your monthly or annual payments significantly- even if you're only slightly raising the deductible cost.
With that in mind, however, it's crucial that you have a solid financial strategy and emergency fund. If a tragedy does strike, you want to make sure that you're adequately prepared to cover any additional costs.
Ask For Discounts
Many insurance providers offer various discounts to attract new and existing customers. This can be quite an advantage in helping you find affordable auto insurance.
For example, you may be eligible for a significant discount if you choose to "bundle" different insurance policies together. If you need homeowners insurance, it's wise to get quoted for what a bundled price for both would be.
You may also be eligible for discounted rates for mature drivers, multiple drivers, or taking defensive driving courses.
You can also get discounts for renewing your policy, joining a group rate, or completing new driver training.
Finally, you may qualify for discounts just for being part of a certain organization or profession (such as college alumni or working in the public sector).
Not sure if you qualify for any discounts or not sure if the company has any available? It never hurts to ask!
Pay on Time
This should be a no-brainer, but one of the best ways to secure affordable auto insurance is to be a reliable customer.
You don't want to raise flags about your financial state or have insurance companies chasing you down to pay the bills.
Make sure that you always have enough money in your checking account to actually pay your bills or auto-payments on time.
If your insurance cannot withdraw the payment due to lack of sufficient funds, this could result in your auto insurance policy canceling. You may have to go through the process all over again.
And, if you have to go through the buying process again, you may be charged more because you've failed to pay your premium on time.
Choose the Right Vehicle
If you're in the market for a new car, don't just look at the sticker price and cost of gas mileage.
It's important to also look at the vehicle's average insurance costs. That's because each car varies regarding "risk," and vehicles that have higher theft rates will have higher premiums.
Be sure to choose a vehicle with strong safety features. You can always cross-check online to look at the average insurance rates in your area for that car's make and model.
In general, the more "exotic" or fancy the car, the more the insurance will cost. But, you probably already knew that, right?
There are many reasons to drive safely and defensively, and affordable auto insurance is just one of them.
By driving carefully and obeying laws, you can avoid getting tickets. If you do get tickets, you risk your insurance premiums going up. That's because you'll be deemed as a riskier driver, and your insurer will hike up the prices to reflect that.
So, put away the cell phone. Never drink and drive. Follow the speed limit. You significantly reduce your chances of getting into an accident, and you reduce your insurance costs. Talk about a win-win.
Know How You Use Your Car
Maybe you switched careers, and your previous commute was significantly longer than your current one. Maybe you recently relocated to school, and you are suddenly walking or riding your bike everywhere.
Whatever the case, if you have recently changed your driving habits, it's important to let your insurance company know!
Typically speaking, the less you drive your car, the cheaper your rates will be. Keep that in mind when you're considering a job or real estate switch. It could impact your insurance rates- either positively or negatively.
Final Thoughts on Securing Affordable Auto Insurance
You don't need to choose between affordable insurance and quality, comprehensive coverage. With the right planning and tools in mind, you can definitely have both.
Interested in learning more tips for saving money on your insurance plans? Be sure to check out our blog today!