How To Reduce Your Car Insurance Costs?

how to reduce your car insurance costs

You might feel as though you shouldn’t bother to obtain proper car insurance, but it is a requirement in most countries around the world. In Canada, for example, insurance premiums can go well over $24 billion. It is a financial safety net in case you’re involved in a car accident and left to deal with the costs. It can even cover the costs of any injuries that other passengers suffer during the accident. 

However, insurance doesn’t only come in handy after an unfortunate car crash. Weather events like ice storms, hail, and more can damage your car, as well as vandalism and theft. Simply put,  a good car insurance policy can give you peace of mind and protection for a wide range of scenarios.

Owning and operating a car can be costly, especially when it comes to car insurance. But don’t worry, there are ways to lower the cost of your premiums without compromising on the quality of coverage. In this article, we will go through some effective ways to help you lower the cost of your car insurance and save thousands on an annual basis.

Compare Insurance Companies

To lower the cost of your car insurance, it is important to compare rates from different insurance companies. Make sure you do this before you buy insurance, renew your coverage, or switch to another insurer.

Prices and conditions vary between different insurance providers, and by comparing you can find the insurance that suits you best and at the lowest price. Start by looking for a good insurance broker near you to help you ease the process of looking for a suitable insurance policy. For instance, if you live in Kitchener, Ontario, start by looking for the best car insurance Kitchener-based provider that can meet your specific needs as well as budget. If you do not shop around for car insurance quotes, you will never know what you could save.

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Review Your Deductibles

A car insurance deductible is a sum taken out of your insurance check when you submit a comprehensive or collision insurance claim. When you buy a policy, you select the amount of your deductible. You can change it later if you happen to change your mind. A greater deductible means you pay a lower premium. This is because you’re taking on more of the costs if you file a claim, and there are fewer chances for you to make claims for minor damage because the repair costs won’t exceed your deductible amount by a lot.

Your agent will be happy to explain how raising your deductible might affect your premium. You may save a small amount of money or you may see your annual premiums drop by several percentage points. Raising the deductible is a good idea if you’re reluctant to make smaller claims because of the possibility that your premium will increase.

Consider Multi-Car Discounts

You may end up paying more per vehicle if you ask an auto insurance provider for a quote to cover a single car than if your inquiry was about multiple drivers or vehicles. Insurance companies want to keep you as a client, so they are ready to offer bulk rates. In some cases, they will offer you a discount if you bring in more business.

You can ask your agent if you’re qualified to take advantage of this discount. Typically, multiple drivers should reside at the same address and be related to each other by blood or marriage. The discount may be available to two unrelated individuals, but they must usually own the car together.

Drive Responsibly on the Road

One of the best tips for reducing car insurance costs is to be a safe motorist. It should be obvious, but with the increasing number of distractions on roads today, it is worth mentioning. You’ll save money on your car insurance if you avoid accidents and moving violations. 

Depending on the insurance company, good driver discounts can range anywhere from 10% to as high as 25% depending on your driving history. If you’re unaware, a driver is usually given points for moving violations. More points can result in higher insurance rates.

Downsize Your Vehicle

Insurance for a large SUV can be much more expensive than insurance for a smaller, but safer, commuter vehicle. Some insurers may even offer you a discount if you purchase a hybrid vehicle or alternative fuel.

Save money on your insurance and feel good about leaving a good environmental footprint. Before making a car purchase, find out the exact insurance rates for the vehicles you’re considering.

Final Thoughts

Car insurance rates are more than likely to increase in the future. However, there are a few things you can do to lower your car insurance cost. Compare insurance companies, increase your deductibles, and always make sure to drive responsibly on the road.

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