You don't have to be a superhero to get great auto insurance premiums. All you need is a little behind-the-scenes knowledge. The following is Kanetix.ca's version of the Fantastic Four; the Fantastic Four money-saving auto insurance tips, that is. Starting at number...
4. In the driver's seat? Drive carefully
OK, perhaps obvious, but true. Drivers with no accidents, tickets or insurance claims almost always get cheaper 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. Tickets affect your insurance rates for up to three years and accidents stay on your record for at least six! With a less than perfect driving record, you can find yourself paying much higher insurance premiums over the years.
3. Increase your deductibles
A deductible is the amount of a claim that you must cover before your insurer pays the remaining balance. Often people select lower deductibles, so their out-of-pocket expenses are minimal at the time of a claim. But the truth is, the higher your collision and comprehensive deductibles the lower your auto insurance premium. So why not minimize your out-of-pocket expense now rather than in the case of a "what if"? You can shave hundreds of dollars off your auto insurance premium if you raise your deductible to the highest amount you can comfortably afford.
- Older car? Think about dropping your collision coverage all together
If your car is getting up there in age, you may want to think about dropping the collision coverage on your policy. You need to think about this one though as it's not always a clear-cut decision. You need to weigh the cost of the collision coverage with the value of your car and your chosen deductibles. For example, if you had a 10-year-old car that was worth about $1000, and your deductible was $1000, that collision coverage is not going to be worth much.
2. Ask about discounts
Most insurance companies offer discounts. The more common include the:
- Age discount: A discount on your insurance as you pass certain age milestones. If available, the qualifying age differs from insurer to insurer.
- Multi-vehicle discount: Available if you insure multiple vehicles with the same insurer.
- Multi-line discount: Offered if you insure your home and auto with the same insurer.
- Anti-theft discount: Obtainable if your vehicle has certain anti-theft devices installed.
- Low mileage discount: Available if your vehicle is not driven often.
- Occupational discount: Offered if you work in a certain field or hold a certain degree.
- Auto club discount: Available if you are a member of an auto club, like CAA .
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 significant money.
1. Shop around
There are two widespread myths that many people believe that prevents them from shopping around for their auto insurance coverage. They are:
- It doesn't matter which insurance company they go with for their auto insurance coverage, they'll end up paying the same rate.
- Shopping around is for people with tickets or accidents only.
Both of these are in fact myths, and could be costing you money, each and every year. Even with a conviction-free driving record, you may be paying way too much for car insurance because auto insurance rates vary wildly between companies, all for the same coverage.
Only by shopping around for auto insurance coverage and getting quotes from several car 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-shop around for your car insurance policy.
The Kanetix.ca Fantastic Four can save you money. Visit www.kanetix.ca today to compare instant, online car insurance quotes to get started!