Car insurance is mandatory when you hit the road, regardless of where you reside in Canada. In provinces like British Columbia, Ontario, and Alberta, you would be shelling out the highest premiums in the country.
On the other hand, Prince Edward Island, Quebec, or Yukon residents should consider themselves lucky. Nevertheless, it makes sense to find viable ways to reduce your premiums. Ultimately, you will cherish the essence of gratification if you save a few hundred dollars!
Now, the million-dollar question is how to reduce car insurance; the car insurance rates in different provinces in Canada may have some disparity.
However, by working with reputed insurance brokers like Surex, you can find effective means to slash your premiums.
Check out the following link if you want to get the best insurance rates for your vehicle in PEI here: https://www.surex.com/insurance/auto-car/prince-edward-island.
How to reduce car insurance in Canada 101 — A guide for Canadian drivers
First, you should invest in a basic car to keep insurance rates low. Expensive models or luxury cars attract high insurance premiums.
Also, these cars are more susceptible to theft. Naturally, purchasing a low-value vehicle makes it easy to insure.
If you are wondering how to reduce your car insurance, these guidelines should work for you.
1. Get multiple quotes from a broker
When you try to save on your premium, you would naturally consider reaching out to multiple insurers.
Have you considered the sheer waste of time and energy in the process? Each time you reach out to an insurance company, you need to furnish the same set of details time and again. Also, you need to wait for them to calculate your premium and give you a quote.
Why not reach out to an established insurance broker? These industry experts can give you multiple quotes for customized policies within minutes. Depending on your preferences and insurance requirements, they would also recommend the best policy for you. No wonder, you can benefit from their discounts and keep your premiums low.
2. Use telematics or usage-based insurance
Suppose you are a new driver or happen to be a teenager. Naturally, you would repent shelling out higher premiums than usual. How do you plan to explain to your insurer that you are trying to adopt the best driving practices?
The solution here lies in using telematics or an app for usage-based insurance. This is an onboard technology where you need to use an app recommended by your insurer. It would record your driving behaviors as you navigate through the roads. The system would also record instances of hard braking and quick acceleration, along with the time and date.
Now, if you drive safely, your insurer will get to know about it by assessing the information harvested through the app. In some cases, you may even qualify for a discount on your premium during your renewal.
3. Pay a higher deductible
If you find it challenging to keep annual car insurance premiums low, consider paying a higher deductible.
Suppose you are paying $300 as the deductible now. Raise the deductible to $1,000, and try to drive safely. If you manage to keep your driving record spotless and don’t claim anything, you can save around 20% on your premium.
However, you cannot deny the risk of shelling out expenses from your pockets if you need to make a claim. You can fancy paying lower premiums with healthy money-management habits and careful driving.
4. Ditch unnecessary coverage
Well, it’s wise to get the maximum coverage for your car to remain financially resilient. What if your car is too old?
If its value doesn’t exceed $3,000, insurance advisors would recommend getting rid of the collision or comprehensive coverage. These optional insurance coverages significantly raise the premiums. Remove any unnecessary coverage based on the age of your car, location, and driving habits.
A fully loaded policy may not be something you need. If your car is old enough, collision coverage won’t make any difference even if you have it. Even in the case of a wrecked car, the coverage would be lower than what you shelled out in terms of premiums over the years.
5. Integrate safety features into your car
Did you consider integrating safety features into your car? While this would keep your car safer on the roads, you can also qualify for cheaper insurance rates. For instance, installing snow tires can fetch you a 3% to 5% discount, regardless of the insurer.
Likewise, insurers prioritize car owners installing anti-theft devices into their cars. This significantly reduces the risk potential arising from instances like theft. Integrating an alarm system can also shut the starter motor or fuel pump.
6. Make claims smartly
The more you file claims, the higher you should expect your premiums to soar. This is because insurers would consider you to be a high-risk client. So, try to be prudent about what you claim and when you do so. This way, you can keep your future premiums low.
Maintaining a claim-free record goes a long way in keeping insurance policies affordable. Before you file a car insurance claim, consult your insurance broker. Only when you have some strategic benefits or the amount is too high should you file your claim.
7. Avoid getting expensive modifications
It’s alluring to boost your car’s performance or visual appeal by integrating some aftermarket modifications. Do you know that this can make your insurance premium expensive? With more modifications, you would be altering the manufacturer’s configuration. This exposes your car to more technological failure risks.
Moreover, modified vehicles with expensive components are likely to attract carjackers. Always consult your insurer or insurance broker before making any modifications.
Now that you are better informed on how to reduce car insurance, you should be able to find an affordable policy. Working closely with established insurance brokers you can find affordable policies with discounts suitable for your car.
Compare the quotes, ask for personalized features in your insurance policy, and get multiple quotes from reputed insurers. Also, work on safe driving and try to improve your driving record. With a multi-pronged approach to keeping your premiums low, you would love how you save on insurance!