Some people buy car insurance from the first provider they find online, and others won’t rest until they’re paying as little as possible on this necessary expense. If you fall into the first category, consider these five secrets of people who save on car insurance – their tips just might put some extra cash back into your wallet.
- They regularly shop around for better deals. People who save money on car insurance aren’t settling for the first plan they’re offered; they’re shopping around to find the best deal possible. You can easily compare quotes online to find an affordable and comprehensive plan. Keep in mind, insurers change their rates regularly, so you should be comparing quotes at least once a year before renewing with your current provider.
- They have an impeccable driving record. Besides keeping you safe, minding the rules of the road has a major upside when it comes to your insurance rate. Did you know that just one speeding ticket could increase your premium, and a few could more than double your rate? Or that in British Columbia, two distracted driving tickets in the span of three years could add $2000 to a driver’s premium? And more serious offences, like driving under the influence, could void your policy and make it hard to secure traditional coverage in the future.
- They take advantage of discounts. There are many discounts that could lower your premium, and smart drivers are regularly talking to their insurance providers to make sure they’re not leaving any money on the table. The easiest way to find out if you qualify for discounts is to give your insurer a call and ask. And always keep your insurer in the loop after a major change in your circumstances. For example, contact your insurer if you move, get married or retire – exciting milestones that could also lower your premium.
- They consider insurance when buying a new vehicle. Saving on your insurance starts with buying the right car. Contrary to popular belief, the colour of your car doesn’t affect your insurance rate, but the make and model of your vehicle will. Cars with a higher safety rating are cheaper to insure, and cars that are frequently stolen are pricier to insure. Also, cars that are expensive to repair or replace increase premiums.
- They carefully consider their payment and coverage options. Paying your insurance premium in one lump sum at the beginning of your term could save you up to 9 percent – a significant saving. Also consider whether you need all types of coverage on your plan. For example, collision coverage isn’t legally necessary – and might not be worth it if you’re driving an older car that costs more to insure that it would to replace.
Just because you have to pay for car insurance, doesn’t mean you should be handing over more money than necessary. If you think you’re paying too much for insurance, call your provider to see if you can lower your bill. If there’s nothing they can do to save you money, it’s time to shop around for a better deal.