On average, Canadians pay between $1,300 and $1,800 for auto insurance every year. This amount can put a dent in your pocket, especially if you’re living paycheck to paycheck.
Auto insurance is important, but you don’t have to break the bank to afford it every month. In fact, there are plenty of ways to find affordable auto insurance in different provinces or cities in Canada, namely:
Pick the Right Car
If you want affordable auto insurance, consider insurance costs when shopping for a car. You should also conduct insurance price research before paying for a car.
Auto insurance companies look into your car model when assessing how much to charge for your insurance. For instance, car models often targeted by thieves are more expensive to insure, as well as sports cars, vintage cars, and luxury cars.
Utilize the Insurance Bureau of Canada’s CLEAR table to know which car models have low claims against them, as this translates to cheaper auto insurance rates. The information presented here will help you narrow down your options when picking car models.
Compare Rates
Shopping for different auto insurance isn’t always possible for Canadians. If you live in BC, Saskatchewan, or Manitoba, your online option is a public insurance provider.
However, if you live in Alberta, Ontario, or other high-competition provinces, you have the option to shop around and look for the best auto insurance rate. Make use of comparison sites and online reviews to determine which providers offer value.
Stay Loyal
This might oppose the previous tip, but deciding to stay with your existing provider can help you cut costs on your auto insurance. Many companies offer loyalty discounts to customers who reach milestones.
For example, you might earn a 10% discount for your auto insurance after staying with the same provider for three years. In general, the longer you stay with the provider, the better deals and promos you can avail from them.
Don’t forget to inquire every few years or inquire before you renew your auto insurance. Loyalty discounts are one of the easiest ways to save a few dollars on your auto insurance.
Maintain Good Credit
Insurers will look into your credit score to assess how liable they might be. A higher credit score usually decreases your car insurance rate, which means more savings. Conversely, a low credit score and poor history can cause your insurance rate to increase.
With this in mind, take the time to ensure that your credit report is accurate and clear of any mistakes. If you know you have a low credit score, work on improving it first before buying a car and getting auto insurance.
Consider Buying a Used Car
Buying a used car is an excellent way to keep auto insurance costs low. It simply works this way: if the cost of the car is high, then the insurance cost will also be high. This means that buying a brand new Ford Ranger at $60,000 will cost more to insure than a used 2019 model with a $40,000 price tag.
Used cars are common in Canada — you can even find great choices online. Take your time to look for used cars, and you’ll be surprised at how much you can save from your auto insurance!
Invest in Safety Features
The costs of car insurance in Toronto and other Canadian provinces and cities can be reduced when you add safety features to your car. This can include snow tires, driver assist technology, an upgraded anti-theft alarm system, and other techs that prevent collisions.
This rule varies in different areas, so make sure to call your provider to ask about the discounts available when you invest in safety features. You don’t want to spend money on features that don’t cut down your auto insurance rates, right?
Maintain a Clean Record
Your driving record can significantly impact your auto insurance rates. Having too many demerit points, traffic tickets, and collisions on your driving record can spike your insurance costs. In short, you’ll end up spending more on your insurance compared to someone without any violations.
Maintaining a clean driving record also entitles you to discounts on your insurance coverage from several private and public insurance providers. This should be reason enough for you to take a defensive driving course and dispute errors on your driving record.
Bundle Policies
You can save more if you buy items in bulk — the same goes for auto insurance. If you know several individuals who need auto insurance, bundle your insurance services together and avail services from one provider.
Many private insurance providers offer great discounts when you bundle your insurance services, up to 25% per policy. Other benefits you can enjoy from bundling policies with one provider are a faster renewal process and one deductible.
Ditch Optional Coverage
You don’t need to pay for all coverages offered by your insurance provider. Dropping optional coverages can help you save a few bucks on your insurance costs.
For example, if you’re driving an old car, you can skip adding collision coverage to your policy. Many drivers skip this coverage as they believe that their old car isn’t worth repairing as it no longer holds much value.
Comprehensive coverage isn’t required by law, so you can forgo adding it to your policy. Comprehensive coverage protects your car while you’re not driving, like when a tree falls on top of your car, or bad weather floods the interiors of your car.
Knowledge is Power
You can get affordable auto insurance by following the tips mentioned above. These tips are easy and give you immediate savings. Don’t be scared to look for and try other hacks — the more strategies you know, the easier it’ll be for you to get affordable auto insurance!