Most people overpay for their auto insurance coverage. Worse, they do so year after year without realizing it. With the price of insurance so high, it's worth doing everything you can to lower your rates. The savings you'll enjoy could add up to hundreds, and even thousands, of dollars over the long run.
Below, you'll find 12 ways to reduce your car insurance premiums while maintaining the coverages you and your family need. Many of them require little more than a phone call to your insurer.
#1 - Complete An Approved Driver Training Class
If you have a teenager who is beginning to drive, encourage him or her to enroll into an approved driver training class. Such classes teach valuable on-the-road safety skills. Many insurers will extend a discount to those who pass them.
#2 - Drop Collision And Comprehensive Coverages
These two coverages are costly. Together, they can add up to nearly half of your premiums. If your car is old and worth very little, consider dropping both of them. Experts suggest doing so when the value of your car is ten times their combined annual premium.
#3 - Install An Alarm System In Your Vehicle
An alarm system reduces the likelihood that your car will be stolen. For this reason, insurers often provide a discount to policyholders that have an alarm system installed in their vehicles.
#4 - Keep Your Driving Record Blemish-Free
The fewer accidents, convictions, and tickets that are listed on your driving record, the lower your rates. This is one of the most important factors used to calculate them. A clean record informs your insurance company that you are less likely to submit claims in the future. As a result, you'll pay less for coverage.
#5 - Raise Your Deductibles
If you're like most consumers, your current deductibles are too low. Most people can raise them without a significant increase in risk since circumstances that generate claims are rare. So, raise them. The higher your deductibles, the lower your premiums.
#6 - Maintain A Solid Credit History
Insurers use credit-based insurance scores to help them set their policyholders' rates. Your payment history, amounts owed, and several other factors are used to compile your score. Insurance companies associated high scores with responsible decision-making behind the wheel. Thus, a good score leads to lower rates.
#7 - Consolidate Your Property And Car Insurance Policies
If you currently have property insurance with one company and your auto insurance with another, consider bringing them under one roof. The reason? You'll qualify for a multi-line discount.
#8 - Drive A Vehicle With A Good CLEAR Profile
The acronym CLEAR stands for Canadian Loss Experience Automobile Rating. This is a system used by insurers to identify which makes, models, and years have a history of frequent and expensive claims. Insurance companies use it as a predictive tool about future claims. A car that has a positive CLEAR rating represents less risk of loss to insurance companies. Thus, driving such a car can help reduce your premiums.
#9 - Avoid Aftermarket Upgrades To Your Car
Think twice before adding a supercharged engine, nitrous oxide system, or high-end stereo to your vehicle. These and other aftermarket components may imply a higher risk of loss to your insurer since they are more costly to replace. As a result, your rates may climb.
#10 - Pay Your Premiums Annually
When you pay your premiums monthly, your insurance company adds a small fee. Although it is usually less than $10 per month, it adds up over time. Pay your invoices once a year, and you can avoid the fees.
#11 - Insure Multiple Vehicles With A Single Policy
Many companies will extend a discount if you consolidate coverages for multiple cars onto one policy. If you and other people in your household currently have coverage from different insurers, consolidate them and enjoy the savings.
#12 - Compare Rates From Several Insurers
A lot of consumers are unaware that rates can differ dramatically from one insurer to the next for the same coverages, limits, and deductibles. Check whether you're enjoying the lowest rates possible by comparing quotes from several insurance companies. There a good chance you're paying more than necessary.
Below, you'll find 12 ways to reduce your car insurance premiums while maintaining the coverages you and your family need. Many of them require little more than a phone call to your insurer.
#1 - Complete An Approved Driver Training Class
If you have a teenager who is beginning to drive, encourage him or her to enroll into an approved driver training class. Such classes teach valuable on-the-road safety skills. Many insurers will extend a discount to those who pass them.
#2 - Drop Collision And Comprehensive Coverages
These two coverages are costly. Together, they can add up to nearly half of your premiums. If your car is old and worth very little, consider dropping both of them. Experts suggest doing so when the value of your car is ten times their combined annual premium.
#3 - Install An Alarm System In Your Vehicle
An alarm system reduces the likelihood that your car will be stolen. For this reason, insurers often provide a discount to policyholders that have an alarm system installed in their vehicles.
#4 - Keep Your Driving Record Blemish-Free
The fewer accidents, convictions, and tickets that are listed on your driving record, the lower your rates. This is one of the most important factors used to calculate them. A clean record informs your insurance company that you are less likely to submit claims in the future. As a result, you'll pay less for coverage.
#5 - Raise Your Deductibles
If you're like most consumers, your current deductibles are too low. Most people can raise them without a significant increase in risk since circumstances that generate claims are rare. So, raise them. The higher your deductibles, the lower your premiums.
#6 - Maintain A Solid Credit History
Insurers use credit-based insurance scores to help them set their policyholders' rates. Your payment history, amounts owed, and several other factors are used to compile your score. Insurance companies associated high scores with responsible decision-making behind the wheel. Thus, a good score leads to lower rates.
#7 - Consolidate Your Property And Car Insurance Policies
If you currently have property insurance with one company and your auto insurance with another, consider bringing them under one roof. The reason? You'll qualify for a multi-line discount.
#8 - Drive A Vehicle With A Good CLEAR Profile
The acronym CLEAR stands for Canadian Loss Experience Automobile Rating. This is a system used by insurers to identify which makes, models, and years have a history of frequent and expensive claims. Insurance companies use it as a predictive tool about future claims. A car that has a positive CLEAR rating represents less risk of loss to insurance companies. Thus, driving such a car can help reduce your premiums.
#9 - Avoid Aftermarket Upgrades To Your Car
Think twice before adding a supercharged engine, nitrous oxide system, or high-end stereo to your vehicle. These and other aftermarket components may imply a higher risk of loss to your insurer since they are more costly to replace. As a result, your rates may climb.
#10 - Pay Your Premiums Annually
When you pay your premiums monthly, your insurance company adds a small fee. Although it is usually less than $10 per month, it adds up over time. Pay your invoices once a year, and you can avoid the fees.
#11 - Insure Multiple Vehicles With A Single Policy
Many companies will extend a discount if you consolidate coverages for multiple cars onto one policy. If you and other people in your household currently have coverage from different insurers, consolidate them and enjoy the savings.
#12 - Compare Rates From Several Insurers
A lot of consumers are unaware that rates can differ dramatically from one insurer to the next for the same coverages, limits, and deductibles. Check whether you're enjoying the lowest rates possible by comparing quotes from several insurance companies. There a good chance you're paying more than necessary.
About the Author:
Having spent twenty years as a GTA auto insurance broker, John has moved north of the city to live out his retirement. If you're looking for the cheapest car insurance Aurora has to offer, take your search online.
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