How to save money on auto insurance
Need to save money? How does 15% sound? We give you the rundown on saving money on car insurance
As the warm weather approaches, drivers are preparing to spend more money at the pumps as a result of higher gas prices typical of summer. Looking to offset some of those costs? Look no further than your auto insurance. but many drivers can expect to get cheaper auto insurance rates this summer thanks to the provincial government’s Auto Insurance Cost and Rate Reduction Strategy. Introduced in August 2013, the strategy promises drivers savings on their auto insurance renewals by 2014, and up to a full 15 per cent average reduction by August 2015.
Don’t wait, anticipate
Many drivers will not see the effects of this decrease until it’s time to renew your policy. Why wait until then? This is a perfect opportunity to compare car insurance quotes and even switch providersfor a better rate. Yes, sometimes this means having to pay a mid-policy cancellation fee, but if the savings you’ll receive on your premiums outweigh the cost of the cancellation fee, why wouldn’t you make the switch?
Take advantage of falling rates and avoid spending unnecessary money on your auto insurance. Compare car insurance quotes to see what you could be saving right now.
Insurance tips to help you save even more money
The province predicts an average drop of 15 per cent in insurance rates, but the truth is not everyone will see this discount. Drivers with a good driving record will be rewarded, while those with checkered driving histories may not see a reduction at all.
If you didn’t get the savings you were hoping for, the good news is there are things you can do now to help improve your rates down the line.
Swap those tires. Changing your tires seasonally could earn you discounts on your auto insurance. Many providers offer up to a five per cent discount to drivers who swap their summer wheels for winter ones when the times comes. Not only are you benefiting from cheaper car insurance, you’re also better equipped to deal with ice and snow, increasing your chances of avoiding accidents.
Pay up front. Paying your insurance premium all at once rather than in monthly installments could help you pay less for coverage. Many companies charge administration fees for monthly payments, which add to your costs. If you can afford it, paying annually pays immediately.
Increase your deductibles. Increasing your deductible, the amount you have to pay in the event of a claim, from $500 to $1000 saves you between five and ten per cent on your auto insurance. However, make sure you can afford that in the event of an accident before making the switch.
Drive smart. The easiest thing you can do to start improving your insurance rates is to driving carefully and cautiously. Your driving record is one of the key factors in determining your auto insurance rates. Tickets stay on your record for up to three years, while accidents stay there for at least six. Become a better driver and eventually you may find yourself with better insurance rates.
Whether you drive a brand new vehicle or a 20-year-old jalopy, hitting the road requires buying at least minimum levels of insurance coverage.
But if you're like most people, you probably don't know what your options are or what coverage you're required to carry, let alone how to get insured without spending a fortune.
Get the Best Price
During tough times like these, insurance companies need your business just as much as you need insurance. This can lead to cheap car insurance rates you might otherwise never expect.
If you're willing to learn, take advantage of a competitive marketplace and compare quotes from more than one insurer, we can help you find the right policy now—affordably, quickly and easily.
So read on for tips and tricks to getting insured, then request your free quotes above. The road to savings starts here!
Secrets You Should Know
Before you accept just any old policy sitting on a shelf, there are some things you should know about insurance rates, the factors that affect your premiums, and how to be your own best advocate when it comes to pricing, namely:
Insurers determine premiums mainly by ratings. You're rated according to the amount of claims risk you present, then grouped with others like you with similar risk rates. Factors like age and gender, where you live, your driving record, your marital status, any prior insurance coverage, how far you drive annually and your vehicle's make and model all affect your ratings.
Discounts can dramatically lower rates. Insurers reward those considered low risk with discounts that can translate into amazing savings. Some of those available include multiple vehicles, educated driver, good student, safe vehicle, low-mileage and multiple policies.
Each state sets its own insurance requirements. Depending on whether your state is a tort or a no-fault state, the type and amount of car insurance you're required to carry by law varies. Check with your state insurance department to find out how your state operates and the legal limits that apply.
Consider optional coverage for your own protection. Unless you drive an older vehicle, you'd be wise to purchase collision and comprehensive coverage for your car. Collision covers damage when your vehicle impacts another car or fixed object, and comprehensive pays for damage from almost all other causes.
Compare multiple quotes before making your final decision. By comparing rates and policies side by side, you can get insured more cheaply than ever before. All it takes is a few minutes, some basic information and wise decision-making.
Now that you better understand your options, it's time to get insured. So for maximum savings, drive safely, avoid tickets and accidents, and heed these secrets to saving money on auto insurance. Then request your free quotes today—and watch the savings stack up.