There are several articles titled “7 ways to save on car insurance” or “5 tips to lower your car insurance costs” etc., but wouldn’t it be great to have all these tips and discounts in one place? Below is such a list for car insurance. This list is a comprehensive overview of all the opportunities to save on car insurance in Canada and has been compiled based on the results of numerous discussions with insurance brokers and analyzes of different insurance offers.
1. Shop: Search, compare and switch insurance companies. There are many insurers and their quotes for the same policies can be very different, so use multiple online tools and talk to multiple brokers since each will cover a limited number of insurance companies.
2. Pack: Do you need home and auto insurance? Most companies will give you a discount if you bundle them together.
3. Professional Membership: Are you a member of a professional organization (eg Certified Management Accountants of Canada or the Air Canada Pilots Association)? Then some insurance companies offer you a discount.
4. Students: Being a single student may result in a student discount.
5. Elders: Graduates of certain Canadian universities (eg University of Toronto, McGill University) may be eligible for a discount with certain insurance providers.
6. Employees/union members: Some companies offer discounts to union members.
7. Elders: Many companies offer special rates for seniors.
8. Direct Insurers: Have you always dealt with insurance brokers/agents? Getting a policy from a direct insurer (i.e. insurers working through a call center or online) can often be cheaper (but not always) as they don’t pay an agent commission /broker for each policy sold.
9. Annual or monthly payments: Compared to monthly payments, annual payments save insurers administrative costs (e.g. sending invoices) and therefore reward you with lower premiums.
10. Loyalty: Staying with an insurer longer can sometimes result in a discount for long-term policyholders.
11. Annual review: Review your policies and coverages annually as new discounts may apply to your new living situation if it has changed.
12. Welcome discount: Some insurers offer a so-called welcome discount.
13. Compare your costs: Knowing how much other consumers similar to you are paying for their insurance can help you identify the best insurers.
14. Car insurance deductibles: Increase your car insurance deductibles if you think you are capable of incurring higher payments for damages in the event of an accident. This is particularly suitable for more experienced motorists.
15. Being a second driver: Do you only occasionally drive a car? Become a second driver instead of a primary driver
16. Minimum coverage: Driving an old car without much value? Get minimum coverage required by law (primarily liability) with no collision damage (you’re still protected if you damage someone’s car, but damage to your car won’t be covered)
17. Minimum coverage: Driving a cheap old car? Then only get a minimum coverage plan that is required by law (mainly liability) with no collision damage coverage (does not cover damage costs to your vehicle)
18. Take advantage of your credit card: Check to see if your credit card insurance includes coverage for the rental car. Paying with a card that has rental car protection insurance can save you about $20 a day in collision damage waiver fees.
19. Take advantage of rental car coverage: If you frequently rent cars and have a car insurance policy, you should check whether your own car insurance policy actually covers the rental car. If so, you can save on all collision damage waiver charges for rental vehicles.
20. Rental car driver: If your existing car insurance policy doesn’t cover your rental car, you can often add it as an endorsement (policy extension) for $20-30 per year. Compared to the $20/day you would pay renting a car, that’s not a bad deal!
21. Location, location, location: Car insurance costs are different from province to province (ex. moving from Ontario to Quebec will surely cut your insurance costs in half). If you are moving to a province, you should check for any changes in car insurance costs and ideally you should move to a lower cost location (for example, Burlington, Ontario has one of the car insurance in Ontario)
22. CAA Member: CAA Members: Are you a CAA member? Some insurers will reward you with lower insurance premiums, including, of course, the CAA.
23. Dash Cam: Get a dash cam for your vehicle. Even if installing a dash cam doesn’t lead to direct savings (insurance companies don’t offer any dash cam related insurance discounts) but it can prove that you don’t ‘re not at fault when this happens in an accident. This saves you from unfair premium increases.
24. Driving lessons: Successful completion of a driving course is sometimes recognized by some insurers and could help you reduce your premiums.
25. Improve your driving record: Do you have a bad driving record? Every three years, previously incurred traffic tickets are removed from your insurance history and your insurance premiums may drop.
26. At-fault accidents: Have you been in a few accidents in the past where you were at fault? With a little patience (six accident-free years), your risk profile will improve and you will once again be able to enjoy reasonable insurance rates.
27. Age: Older drivers benefit from lower car insurance premiums. Thus, in a few years, your premiums may drop.
28. Make and model of car: Choose your car wisely, as some car models are more susceptible to theft or even have riskier driving histories (e.g. Toyota Camry, Acura MDX, Toyota RAV4 and Honda Civic are usually quite expensive to ensure)
29. Good student: Yes, having good grades can have many positive impacts, and even on your car insurance rates! For example, an insurance company rewards students who are under 25 and have good grades (B average or higher) with a discount of up to 25%.
30. Multiple Car Bundle: Combine multiple cars on one policy and your rate can drop
31. Anti-theft system: Installing a certified anti-theft system in your car reduces the risk of theft and can therefore lead to insurance reductions.
32. Winter tires: Having winter tires is important for winter driving safety, but can also help lower your insurance premiums.
33. Repair costs: Choose a car that would cost less to repair if damaged. Repair costs for some cars (eg Mini Cooper or BMW) are higher than others (eg Ford Focus) and insurers are aware of this.
34. Claims history: Keeping a clean claims history can sometimes be more financially feasible than submitting claims for small damage repairs that could result in higher premiums. Contacting an insurance provider/broker might help you figure out what makes sense.
35. Being married: In most provinces, your marital status affects your insurance premiums (except Nova Scotia)
36. Short distance to work: Finding a house close to your place of work reduces the distance you have to travel daily to get to work and thus leads to lower insurance premiums.
38. Tempered glass cover: For cars with cheap windscreens, it may be more economical to drop the glass cover because in combination with the deductibles to be paid in the event of an accident, you would pay more. It’s up to you to calculate.
39. Discounts for retirees: Some insurance companies offer different retirement discounts for drivers.
40. Disabilities: Some companies offer discounts for people with disabilities.
41. Hybrid vehicles: Many companies reward driving a hybrid vehicle with lower insurance premiums.
42. Private Garage: Parking your car in a safe place (for example, a private or secure garage) normally results in lower insurance premiums from car insurance providers.