Ah, good ol’ auto insurance. It’s something we all must have that no one wants to spend too much on.
Unlike home insurance, auto insurance is mandatory in Ontario, but that doesn’t mean it has to be expensive.
So, what are some potential ways you could save money on your auto insurance?
Before we begin, let’s start with a piece of advice: Although reducing policy limits and deleting vehicle coverage(s) can save money on your policy, it is highly recommended to discuss such changes in detail with your insurance agent to best understand the overall impact on your auto insurance policy. Changes you make may impact the physical damage coverage of the vehicle(s) or accident benefits for injury in an auto accident.
SHOP AROUND
I know, it’s kind of weird for an auto insurance company to put this first in the list of ways to save money on auto insurance, but this information is for YOU, not us.
We’re sometimes the best option for auto insurance, we’re sometimes the cheapest, but regardless, we suggest you shop around with other providers to make sure you’re choosing the insurance provider that you’re most comfortable with, cost included.
While it’s tempting to choose the cheapest quote, it’s important to compare:
- Coverage limits
- Deductibles
- Accident forgiveness options
- Claims process reputation
- Customer service ratings
Sometimes, a slightly higher premium offers significantly better protection and long-term savings.
BUNDLE INSURANCE
This is one you’ve likely heard of many times before from all those fancy commercials on TV and online (save up to whatever % by bundling your home and auto insurance with us).
Well, it’s true!
One of the easiest ways to reduce your premium is by bundling your insurance policies. Many insurers offer discounts when you bundle, including us.
INCREASE YOUR DEDUCTIBLE
But wouldn’t this mean we need to spend MORE money when we make an auto insurance claim? Yes, but it may also mean you spend less money overall.
Increasing your insurance deductible from $500 to $1,000 could save you enough money monthly to more than cover the difference.
Besides, like home insurance claims, auto insurance claims shouldn’t be made for the little stuff. If you have something small, like a busted taillight or cracked windshield, you may be wise to just go out of pocket and save:
- the cost of the deductible
- the hassle of dealing with an insurance claim
- the increased monthly premiums that could result from making too many claims
TAKE ADVANTAGE OF AVAILABLE DISCOUNTS
A good insurance agent will share and explore all available discounts when you first sign up, but you should also review your auto insurance policy annually and ask about any new discounts that may have become available since you signed up or last renewed.
Some potential auto insurance discounts out there include:
- Safe driver discount
- Multi-vehicle discount
- Good student discount
- Student Away at school discount
- Defensive driving course discount
- Short commute discount
- Low mileage discount
- Anti-theft device discount
AVOID SENSELESS CONVICTIONS
Maintaining a clean driving record is one of the most effective (and often easiest) ways to keep auto insurance costs as low as possible.
In fact, there are often optional programs you can sign up for, such as DriveMutual.
DriveMutual is a telematics app that uses your smartphone’s GPS and built-in motion sensors to monitor driving habits. By demonstrating safe driving behaviour, policyholders may qualify for savings on their Erie Mutual auto insurance renewal premiums. Click here to learn more.
Any convictions on your driving record can lead to higher auto insurance premiums. One of the best ways to help keep your auto insurance costs as low as possible is to avoid them.
1/ Buckle up! It takes less than 5 seconds to buckle your seat belt, but it can save lives and money.
2/ Watch your speed. Life moves fast, slow down! Likely whatever you’re speeding to arrive at will still be there 10-15 minutes later, what’s the rush?
3/ Keep your phone out of reach. Distracted driving is a major conviction and can cause insurance premiums to increase by as much as 100-150%, not to mention fines, demerit points on your driver’s license and a possible D/L suspension (is it really worth it). Not to mention the risk and danger you put yourself, your passengers, and others in.
OWN A VEHICLE THAT IS CHEAPER TO INSURE
How easy this one is to try depends on your situation. Who knows, maybe you’re lucky, and you’re already driving a vehicle that is cheaper to insure!
If you’re in the market for a new vehicle, make sure to factor in what each option’s insurance rates would be while you make your decision.
Vehicles that typically cost less to insure include:
- Sedans over sports cars
- Trucks over cars
- Vehicles with strong safety ratings
- Cars with lower repair and replacement costs
- Autos with lower theft rates
High-performance or luxury vehicles usually carry higher premiums due to repair expenses and theft risk. Besides, if we’re focused on saving money here, we should be skipping the luxury cars, too!!
CONSIDER USAGE-BASED INSURANCE WHERE AVAILABLE
Does your car sit in your driveway most days while you work from home? Do you walk or bike to work? Auto insurance rates based on usage may be the answer for you.
If you drive less than average or practice safe driving habits, usage-based or telematics programs like DriveMutual can reward you with lower rates based on actual driving behaviour.
These programs track factors like:
- Mileage
- Speed
- Braking patterns
- Time of day driven
Related article: How to save money on home insurance.
For safe, low-mileage drivers, this can mean meaningful savings.
Saving money on auto insurance shouldn’t mean cutting corners or sacrificing quality coverage. If you have any questions about your auto insurance needs, please don’t hesitate to contact us anytime.
