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6 Tips to Save on Your Car Insurance Premium

1. Drive a smaller, older, or less fuel-efficient car  

The model of your car is one of the most important factors when calculating your insurance. Insurers take into account, among other things, the vehicle’s propensity to be stolen, its sporting vocation, its safety rating, etc.

Visit infoassurance.ca, the Insurance Bureau of Canada (IBC) website, to find out which vehicles could cost you more to insure, such as: 

  • the most stolen vehicles in the country
  • sports vehicles
  • the largest displacements
  • SUVs 
  • models recognized as being less safe for their occupants

You can also take a look at hybrid or electric cars, which sometimes get you a discount on your insurance. 

2. Install an anti-theft device

Regardless of the vehicle, insurers will generally offer you immediate discounts if you install an anti-theft, tracking, or immobilizer device. Chiseling the main components of your car can also lower your premium.

Plus, it provides peace of mind knowing that your vehicle is keeping thieves away.

3. Make sure your credit score is error-free

Before giving you a price for your car and home insurance, insurers take a reading of your credit score.

However, sometimes credit files contain errors, which could penalize you when calculating your premium.

To avoid this situation, take the time to request a copy of your credit report once a year. To obtain this service, free of charge, you must contact Equifax and TransUnion. If you find errors in your file, have them corrected quickly.

4. Negotiate and compare before buying 

Like anything else, it is advantageous to negotiate with your insurer, your broker, or even outright
shop for your insurance with several companies. It is a healthy process to go and see what the insurer market can offer you.

Insurer programs change from year to year, just as your needs change over time; and sometimes all it takes is a simple phone call to get a discount on your premium, or to discover an insurer offering a new, more advantageous policy.

Do not hesitate to mention your membership in a club, association, or professional order: some insurers offer discounts to active members of recognized associations.

Also, by combining your auto and home insurance with the same insurer, you could save big. They generally grant a substantial discount to people who insure several items with them.

5. Create a tailor-made insurance policy

Evaluate what coverages and endorsements adequately protect you, and request that what you think is unnecessary be removed from your policy. The more protection you have, the more expensive it is…

Calculate as accurately as possible the annual mileage you cover with your vehicle. Your insurer takes this factor into account to establish your premium. The less you drive, the less you pay!

If you have a good risk tolerance, you can also reduce your premium by increasing the excess to be paid in the event of a claim. Be aware that in the event of a problem, you will have to pay more.

6. Adopt safe driving behavior

Distracted drivers, whether by their smartphone or something else, cause accidents that increase the number of claims to insurers. 

By adopting safe driving behavior, not only do you help improve your road safety record, but you can also receive a “good driver” discount if you have had no complaints in recent years.

Read also: How Can You Cancel Your Car Insurance?