Types of Car Insurance Discounts in Canada

When you’re shopping around for car insurance, one thing you need to be savvy about is what types of car insurance deals are available. It would be such a pity if you ended up with a more expensive premium just because you weren’t aware that there were any discounts. Discounts are the best way to save money on auto insurance as opposed to other money saving tactics like raising your deductible – raising your deductible may help you in the short-term but if there’s an accident you’ll have to pay out of pocket all that money you saved. With a discount, there’s no such downside. Your penny saved is truly your penny earned.

Make Sure You’re Covered

Be aware, however, of the distinction between an insurance discount and discount insurance. Insurance discounts are reduced rates available for reputable insurance companies. Discount insurance on the other hand may appear to be cheaper at first glance, but take a closer look at the policies of these self proclaimed discount auto insurance companies – oftentimes the coverage they offer is ridiculously shoddy and low.

Multiple Policy Savings

One simple discount you can get is a multiple policy discount. This kind of deal kicks in when someone purchases more than one kind of insurance with a particular company. For instance, if you buy car and home insurance with the same company, they may offer you this discount.

Good Driving Can Save You Money

If you’re a good driver and haven’t had any accidents or received any tickets for several years, you may be eligible for a lower premium. Taking a provincially approved defensive driving class can also score you an affordable policy – but keep in mind that if you are taking a driving class only because the court ordered you to do so, you aren’t eligible for this discount.

For drivers under the age of 25, if you are enrolled in school and get good grades, there’s a discount for you. Typically you have to send in a transcript or report card to prove that your grades are as good as you say. On the other side of the age spectrum, drivers who are retired can apply for a senior discount.