Spend less on your least favourite car costs: gas and auto insurance

Increasingly pinched at the pump, Canadians more than ever, are looking for ways to save on two of their least favourite car costs: gas and auto insurance.

Save money at the pumps

Slow down
On most major Canadian highways the posted limit is 100 km/h. If you have a bit of a lead foot and like to increase your cruising speed from 100 to 120 km/h, you are also increasing your vehicle’s fuel consumption by about 20 per cent. Do you really want to buy 20 per cent more gas?

Relax and enjoy the drive
If someone told you that you could save two or three minutes of your time by burning 25 per cent more fuel would you think it was worth it? Drivers with aggressive driving tendencies (like speeding, rapid acceleration and hard braking), increase their fuel consumption by about 25 per cent. Consider as well that aggressive city driving only saves you about 2½ minutes on a 60 minute trip and it hardly seems worth it.

Minimize the amount of “stuff” you keep in your vehicle
Too often cars become a storage room. While it may seem convenient, it’s estimated that for every additional 100 pounds in your vehicle you are likely reducing the mileage you get per tank by 1-2 per cent.

Not driving? Turn off the car
You get 0 kilometres per litre if your car is idling. You’re not going anywhere, but you’re using up costly gas. Instead of idling at a drive-up window, why not park the car and go in? Not only is it often faster, but idling in a line for longer than 10 seconds burns more gas than restarting the engine. Idle for more than 10 minutes a day and you'll find that you use about five per cent more fuel every year.

Keep your car maintained and running smoothly
Your car was designed with certain minimum requirements for optimal operation and when these minimums are not met your fuel-efficiency suffers. Consider:

• Your tires. Keeping your tires properly inflated helps your car run efficiently. So much so that properly inflated tires can save you up to two weeks worth of gas each year.
• Your motor oil. Improve your gas mileage by 1-2 per cent by using the manufacturer's recommended grade of motor oil – use anything else and you’re not getting all you can from your car.

Save money on your auto insurance

While saving money at the pumps is something you can do every week, the following tips will ensure you have the tools needed to maximize your insurance savings too.

Shop around
Rates can vary wildly between insurers. Only by shopping around for auto insurance and getting quotes from several insurance companies will you know you are getting your car insurance coverage at the best available rate. Don’t pay more than you have to for the car insurance you need. Compare your car insurance rates and coverage on an annual basis.

Select a higher insurance deductible
Policyholders with deductibles set to $500 could save up to 5 per cent by raising them to $1,000. Keep it affordable though because this is how much you’ll have to cover should you need to submit a claim.

Don’t pay for optional coverage you do not need
Review your policy to see if there are optional coverages or features included in your current policy that you may not need. For example, if you drive an older car you may no longer want collision coverage, comprehensive coverage, or both.

Ask about discounts
Most insurance companies offer discounts. The more common include the:

• Multi-vehicle discount
  If you insure more than one vehicle with the same insurance company, you'll likely get a break on the premium on each automobile.



• Multi-line discount
  Consider insuring both your automobile and property with the same company. You'll often get a reduced premium for the automobile and/or property insurance.



• Good driver discount
  It pays to drive safely. Many insurance companies offer driving record discounts for every year that you've had no accidents or tickets.



• Safe driver discount
  If you are a new driver, and have taken and passed an accredited driver safety course many insurers offer a discount to recognize your safe driving skills.



• Anti-theft discount
  If your vehicle has an approved alarm or anti-theft device installed, a lower premium may be available.



• Retiree discount
  Some companies reward your maturity. The qualifying age varies but is usually 50 or 55.



• Low mileage discount
  If you limit how often you drive by taking public transit or carpooling then ask your insurer if they have a low mileage discount. The fewer kilometers you put on your car, the more likely you are to get a cheaper rate.



• Winter tire discount
  Some companies offer a discount when all four of tires are changed seasonally. This discount could save you up to 5 per cent.



• Preferred parking
  Depending on where you regularly park your car at home, you may get a break on your rate. What's preferred? Usually a private, residential driveway or garage. In these locations it is believed your car is less likely to be stolen or vandalized.

While the availability of discounts will vary depending on your insurer, where you live and whether you meet the eligibility requirements, asking about them could save you money.

Consider the cost of paying monthly
You could save money by paying your annual premium all at once, instead of setting up a monthly payment plan. Many companies will charge you a little extra to cover the cost of administering your payments every month.

Drive safely
OK, this last one is obvious but true. Driver’s with no accidents, tickets or insurance claims almost always pay less for their auto insurance coverage. Your driving record is a key factor in determining your insurance rate. Tickets and at-fault accidents affect your insurance rates for years. With a less than perfect driving record, you can find yourself paying much higher insurance premiums over the years.

It all adds up – get started today

Start saving today and get auto insurance quotes from multiple companies. It’s the best way to know you are getting the coverage you need at a price you can afford.

Looking for more on hybrid car trends, fuel efficiency, and auto insurance rates?

Over the years, Kanetix® has compiled a series of articles and news bytes that you might find of interest:

• Hot hybrids: The 10 most popular hybrids
• Hybrid cars in Canada: Will going green save you money?
• Hybrid popularity soars, but will your auto insurance?
• Fact, fiction, rumour or reality? The scoop on hybrids
• Autos that save you money: In gas and in your auto insurance premiums
• Gas prices affecting your choice of vehicle for you next purchase?

Gas-saving tips list compiled from information found on the websites for Natural Resources Canada, the U.S. Department of Energy and the U.S. Environmental Protection Agency.