Save Money on Car Insurance
Posted by Gail | Filed under SensibleSpending
If you’re paying a whack of cash for car insurance, here are four things you might want to consider to get your transportation costs back in line:
1. Bundle your insurance. By insuring both your home and automobile through the same insurance company you can take advantage of a “multi-line” discount saving up to 15%.
2. Increase your deductible. You’ll pay less for insurance if you’re willing to pay a higher deductible should you file a claim. Raise your deductible from the standard $250 to $500 and you could save up to 20% on your premium. Go for a $1,000 deductible and you could save 30% or more.
3. Keep your record clean. While many insurance companies will forgive one minor moving violation, like a seat-belt ticket or speeding ticket for less than 30 km/hr over the limit, they are very unlikely to be as soft on the second or third moving violation. And since those indications of your “high risk factor” and stay on your motor vehicle record for two years, you can end up paying though the nose for your inability to moderate!
If you want to pay the least for your insurance, stay free of at-fault accidents, and keep your moving violations to one or less in a three-year period. Otherwise, you’ll find yourself in a lower classification paying up to 20% more for your insurance. A third conviction at best will increase in your premium significantly and at worst oust you from the regular insurance market, forcing you into the so-called “high-risk” market, where you could pay as much as 250% more for your insurance.
4. Know how your age affects your insurance premiums. If you’re over 50, you may be able to claim a mature driver discount. If you’re under 25, you’ll pay through the nose unless you take a qualifying driver’s education program, which could cut your costs by as much as 30%.
October 30, 2012 at 7:27 am
I’m going to phone my insurer this week and ask if they have a loyalty discount. I’ve been with the same broker for over 30 years – that should be worth something, in my book anyway. If they say “no”, than I am going to see what other providers can offer me.
I used to have a $250 deductible – many moons ago – it’s not even offered anymore; so my deductible is $500, and I will be inquiring what a $1K deductible will save us. Insurance is sooooooo expensive these days, and shortly my daughter will have her G1, so I must save now where I can. She is taking instruction at Young Drivers (NOT CHEAP!), and I hope that will help. Hubby will be the big 5-0 next year, I’m hoping that will help as well (fingers “x’d”)
October 30, 2012 at 8:05 am
Car insurance brokers can generally only offer specific insurance companies if they give them enough business. The result is that car insurance brokers don’t shop the entire market, just the companies they have. And that means if you actually want to shop around, you’ve got to call numerous brokers. We’re unlikely to get a real market-wide quote out of calling just our local broker.
October 30, 2012 at 8:12 am
Every year, I call numerous brokers and check rates. We did get a multi-discount with our home and car insurance, but it is amazing at the difference between brokers/companies. We actually switched to two separate companies because the one we had our car insurance with, couldn’t match another companies home insurance rates for a much better rate. And even with the multi discount, it didn’t match. You really have to check around for the best deals. It can make a HUGE difference!
October 30, 2012 at 8:14 am
I just switched car insurance providers last week, since my current provider wanted to increase our rates by $400 for next year (two cars). The new company is going to be $100 cheaper than what I’m currently paying, and I get a discount on my home insurance with the multi-policy discount. I called the company directly and it is far cheaper than the insurance my broker offered.
October 30, 2012 at 8:22 am
Bundling saved us but raising the deductible wouldn’t so we didn’t bother. Not only does our company not forgive one at-fault incident (well, you can pay through the nose for that priviledge), they don’t forgive a not-at-fault either. Shopping around didn’t really do much for prices but it did get us the company with intelligent and good customer service.
October 30, 2012 at 8:36 am
Here in Manitoba we have one provincial insurer…but the part about raising the deductible still applies.
October 30, 2012 at 8:57 am
Here in SK there is one provider and they also, do NOT forgive not at fault. The points (fees) they ding you with are horrendous.
October 30, 2012 at 9:22 am
I graduated from Brock University and UWO, where both Alumni Associations are partnered with TD Meloche Monnex. (UWO had the better rate for me)
I pay $77.63 including taxes per month for my 2009 Chevrolet Aveo. $1,000 deductible, which is bundled with my home insurance.
Prior to switching I was with State Farm, paying $75 more per month — which is equivalent to my monthly condo fee!!
October 30, 2012 at 9:51 am
I was a insurance rep in bc for a while. There is only one provider here too. You must buy your basic (2000000 liability)through icbc and you could shop around for around for optional coverage(accident, more liability). You are also not penalized for a not at fault accident.
October 30, 2012 at 10:34 am
We just switched our auto insurance provider last week! Just got a flyer in the mail and happened to call for a quote… Turns out, we’d be saving 100$ A MONTH for BETTER coverage, when we bundled our home and auto! Needless to say, we made the switch. Our previous company said their rates were locked in with the ON gov, so they couldn’t match it. Our premiums kept increasing, even though we had never made a claim of any kind and we were older… There are always better rates out there, just call and ask!
October 30, 2012 at 1:54 pm
How can ins. companies charge you for not at fault accidents?? Am I missing something?
October 30, 2012 at 4:47 pm
Does anyone ever question why when you are ticketed with a traffic violation, you pay both the fine and your insurance rates typically go up ?? In essence, you would be paying 2 or 3 or more fold for one infraction ? Despite having a pretty good Insurance rate, I beleive that for the most part, rates are much too high.
October 30, 2012 at 5:17 pm
I’m in sask and was recently rear-ended. Our one and only insurance provider, SGI, did NOT penalize me in any way. I’m not sure how they ever could given it was not my fault. Not sure what Jolie meant by his/her comment.
October 30, 2012 at 6:33 pm
The result is that car insurance brokers don’t shop the entire market, just the companies they have. And that means if you actually want to shop around, you’ve got to call numerous brokers. We’re unlikely to get a real market-wide quote out of calling just our local broker.
October 31, 2012 at 12:14 am
I live in BC and I am able to bundle home and auto coverage to some degree, with the BCAA insurance agency – I get a good multi-line discount on the annual membership fee. I have had private insurance for the optional stuff over ICBC’s basic rates, but have ended up switching back to 100% ICBC coverage, because the private companies either didn’t cover my particular car, or their rates were not competitive. ICBC is not outrageous when you are a good driver, folks!
I have a new driver (son got his ‘N’ about a month ago) covered on one car and we didn’t have to pay through the nose, but we are accident free in the last 25 years, except a parking lot fender smack which was 50/50 at fault. If you keep your record clean, and look for savings one deductibles etc. it is way more cost effective than my European relatives pay!
October 31, 2012 at 8:10 am
You could also check to see if your university or college offers insurance for graduates. (I’m sure there are other groups as well) The rates for this sort of association plan are often quite low, based on demographic profiles.
October 31, 2012 at 11:30 am
Make sure your file is up to date too. My husband changed jobs recently and when I notified our broker about the new workplace our auto insurance premium went down substantially due to his much shorter commute. Savings almost $450 per year!!
October 31, 2012 at 12:17 pm
I had car insurance through the same broker for 20 years and when I got sick of the rising premiums with no cause ( no accidents, no tickets), I called around. CAA gave me better coverage, its $225 a month Cheaper and it also includes my home policy.
October 31, 2012 at 10:47 pm
Another good way to save is to have an older vehicle. When I bought a new car, I was shocked at the difference in my plates and insurance. Funny… you’d think they would penalize people with old rickety deathtraps that damage the environment and are hard to find parts for rather than the people who are driving newer gas efficient vehicles with safety features and parts still in production.
November 5, 2012 at 9:53 am
Since I’ve had my car 2 years ago, I haven’t been into any at-fault accidents. So I paid less on my next insurance payment.
Tiffany G. Richert, Proponent of Simple Living!
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