Have you ever heard the term, “grudge purchase”? It refers to things that you don’t want to buy – but have to anyway. A classic example: car insurance. To take some of the sting out of this unwelcome expense, consider the following seven ways you can lower your insurance payment.
Be a Savvy Shopper
Your quest to save money on insurance should start before you even have coverage! Consider these tips when you’re shopping for your plan.
- Compare quotes. One of the top ways you can lower your premium is by shopping around for the best price before choosing an insurer. It’s easy to do: there are multiple sites that will allow you to quickly compare car insurance quotes online. Insurers change their rates often, so even if you’ve found a stellar plan, do another comparison before you renew each year.
- Pay upfront. When you’re researching insurance plans, ask providers whether or not you can pay your premium upfront in one lump sum; in some cases, you could earn up to nine percent off the total price of your coverage.
Capitalize on changes in your lifestyle
A lot of things in your life will change between the first and last time you get behind the wheel – and some of those milestones could save you money!
- Got married? If you recently tied the knot, give your insurance provider a call to tell them the good news – your new relationship status could actually qualify you for a discount. No, it’s not just a wedding gift from your provider – it’s a discount some insurers offer if their data supports the idea that married couples get less tickets and cause less accidents.
- Buy a house? Many insurers offer discounts to homeowners since they are rated as more stable and less risky. Plus, you could also save money by bundling your home and car insurance policies.
- Retired? As if you needed another reason to wave goodbye to the nine-to-five grind! Once you’re retired, you won’t be logging as many kilometres on your daily commute, and less driving could very well mean a lower premium.
Invest in your safety
Your insurance premium is all about how much risk you pose to your insurer, so anything you do to invest in your safety and lower your risk will potentially lower your payments.
- Install winter tires. Snow, ice, and cold weather can make winter driving dangerous, which is why many insurers offer a discount to drivers who install winter tires on their vehicles. Not convinced they’re worth the money? One winter tire test demonstrated that, when driving on ice, winter tires stopped 1.8 metres (six feet) shorter than all-season tires – space that could make all the difference between hitting the car in front of you and stopping safely.
- Purchase a security system. Installing an anti-theft system can lower the likelihood that your vehicle will be stolen – and that reduced risk could earn you a discount on your premium. Also, a stolen vehicle recovery system increases your chances of finding your car if it is stolen, another way you can lower your risk level with your insurer.
These are just some of the ways you can lower your insurance premium – so use these tips to start a conversation with your provider. If you’re not satisfied with the results, shop around for quotes to see if a better deal is out there.
Even if it’s not time for renewal, a significantly lower premium with another insurer might offset the cost of cancelling your current plan. Once you have that extra money in your pocket, you can end your grudge with your car insurance payments and put that cash towards something you’ll love buying.