1) Keep a Clean Driving Record
If you only follow one recommendation on this list make it this one. Driving safe will save you lots of money on car insurance and it will also help make the roads safer for all Canadians.
2) Take the Time to Shop Around
There are hundreds of insurance companies in Canada offering similar products. A good analogy is that buying car insurance is like buying a can of Coca-Cola. If you buy a can of Coke at an NHL hockey game it will cost you a lot more than it would at your local grocery store. The product is the exact same except the price is very different. Take the time to get a few quotes before you sign up for a policy. You’ll need to start researching companies before the day that you need to get your insurance renewed though. Otherwise you might not have many options.
3) Bundle Your Coverage
If you insure your home and car with the same company then you will likely find great savings. If your insurance company doesn’t have any bundling discounts then consider finding a company that does.
4) Lump Sum Payments
You can save money by paying for your insurance in large lump sum payments. Some companies will allow you to pay in 6-month increments; otherwise you’ll have to pay for the full year, before your coverage begins. Paying monthly might be more convenient but it costs more.
5) Only Insure One Car
If you’re serious about saving money on transportation, and you currently own two vehicles, then you should think about only keeping one of them. You can try biking or walking to work. Public transit might also be an affordable alternative to driving. Insuring fewer vehicles can save you lots of money.
6) Don’t Cancel & Don’t Miss a Payment
Missing a payment or cancelling your policy is the quickest way to get in the insurance company’s doghouse. Insurance companies keep track of “questionable” customers so don’t miss any payments and do your absolute best to avoid cancelling your coverage. You may also be subject to additional penalties if you cancel or miss a payment.
7) Miscellaneous Discounts
There are all kinds of discounts to look out for when insuring your car: seniors discounts, loyalty discounts, good driver discounts, good student discounts, multi-line discounts, multi-car discounts etc.
8) Go With a Higher Deductible
Proceed with caution on this one. A higher deductible is a great way to lower your insurance premiums but it can also be expensive if you get in an accident.
9) Drive Less
There are a few Canadian insurers that offer low-mileage discounts. Consider carpooling or taking public transit a few times a week to become eligible for these discounts. You’ll also spend less money on fuel and carpooling is a great way to get to know your coworkers and share the stress of having to drive to work every day.
10) Avoid the Extras
You can slim down a car insurance policy to a pretty basic coverage. Avoid vehicle replacement coverage and consider dropping or lowering your coverage for collision or comprehensive if you own an older vehicle. Dropping collision and comprehensive is risky though. You should weigh out your options before you make a final decision. It is a good way to save money but you might end up paying more in the long run. If you have a newer car, or if you are mechanically inclined, then you might want to consider forgoing roadside assistance coverage.