For road users, car insurance can be a significant monthly expense. Especially if you’re young, you could be faced with paying hundreds of dollars per month. This leads many to wonder how they can reduce their premiums.
That’s where we can help. Here we’ll look at many tips to lower car insurance in Ontario. Some of these tips may not be immediate solutions, but you’ll find a lot of useful information here. Read on to find out how you can get cheaper insurance rates.
1. Shop Around
The most obvious point is to shop around. Your premiums are effectively a risk assessment, and each insurer assesses risk differently. Due to this, it’s important to compare quotes from multiple providers.
There are generally two ways to do this either using online comparison tools or consulting with an insurance broker. A broker will be able to discuss exactly what you need and provide insights into the more cost-effective plan for you.
Related Article: https://bucklerins.com/what-is-the-cost-of-car-insurance-in-ontario/
2. Increase Your Deductible
Your deductible is what you have to pay out-of-pocket before you make a claim. A higher deductible will always mean a lower premium. However, this is somewhat of a gamble. If you do have an accident, then you can be forced to pay that higher deductible. Due to this, always ensure it’s something you can reasonably pay.
3. Bundle Insurance Policies
Many insurers will allow you to bundle policies together. For example, you could have home and auto insurance with the same provider, with a lower combined cost. Check with your insurance company to see what’s available.
4. Maintain a Clean Driving Record
Your driving record can be a significant factor. If you have a history of at-fault accidents, this can hugely increase your premiums. With good driving over time, these accidents will fall off your driving record and your rates will steadily come down. With or without an accident, having a long history of no claims will reflect positively on your premium.
5. Take Advantage of Discounts
Are there any discounts that your insurer offers? A common one is a multi-vehicle discount if you have more than one vehicle in the household. Others can include a good student discount, safety features discount, and low mileage discount. As your insurer if they have any offers that may apply to you.
6. Drive a Car That’s Cheaper to Insure
High-performance and/or expensive cars will lead to higher premiums. Conversely, low-powered cars and those with great safety ratings will lead to lower premiums. If you have yet to get a vehicle, then consider insurance costs before you do. Low-cost safe cars are generally less likely to be stolen, less likely to be in an accident, and are cheaper to repair.
7. Improve Your Credit Score
Along with assessing your risk of an accident, insurance companies can also assess your financial risk. Having a good credit score can demonstrate financial responsibility, which insurers can reward with lower rates.
8. Use Winter Tires
In Ontario, you can get a 2-5% discount on your insurance if you use winter tires during those colder months as they reduce your chance of accidents. However, it’s important to note that if you have this discount and forget to put on your winter tires, you could breach your insurance contract if those tires could have helped prevent the accident.
9. Consider Usage-Based Insurance
Usage-Based Insurance (UBI) programs have become increasingly popular. Also known as telematics, this is where a device is installed in your car to track your driving. This will include how much you drive, your speed, braking patterns, and more. If you prove to be a safe driver, this will lower your premiums.
10. Review and Adjust Your Coverage
Make sure to review your policy to ensure you have the appropriate coverage. Many people renew their policy each year without thinking about it. This means that you have to pay for coverage that you don’t need.
11. Join a Group Insurance Plan
Some associations and organizations offer group insurance plans to their members. These can have significant savings as the risk of an accident is shared across the group. If you are a part of any company or organization, check to see if they have such a plan.
12. Limit Your Claims
If you have a minor accident, consider whether making a claim is worth the potential increase in premiums. For minor damages, it may be better to agree on a deal with the other party or pay out of your own pocket. This is because frequent claims, even if small, can lead to higher premiums.
13. Take a Defensive Driving Course
Defensive driving courses can be a good way to demonstrate your commitment to safe driving. Depending on the insurer, this may qualify you for an insurance discount. Even if it doesn’t, it can give you valuable skills to help you avoid accidents and drive more safely.
14. Pay Your Premium Annually
Most insurers will charge a fee for taking monthly payments as they’d rather receive all the money upfront. Obviously, many people can’t afford to do this but if you can, it will reduce your overall cost.
15. Stay Loyal, But Not Too Loyal
Finally, staying with the same insurer can qualify you for loyalty discounts. However, it may not be the cheapest option. It’s still a good idea to shop around to check if you can get a better auto insurance deal, but staying with the same insurer can have its benefits.
Final Thoughts
Lowering your car insurance premiums in Ontario can be simple but needs a proactive approach. Whether it’s shopping around or contacting your insurer for discounts, there are many ways to save money.
However, it can be tricky to know what’s best for your situation and not everyone has the time to ring around different insurance companies. If you want a simpler way to get affordable car insurance, contact Buckler Insurance today and we’ll work hard to find the perfect policy for you.
