How to Reduce Auto Insurance Rates in Canada

Congratulations! You’ve managed to get a great car insurance rate. But that isn’t the end of the story – you can’t just live happily ever after with your beloved insurance rate. Your car insurance premiums will rise if something happens and the insurance company is forced to pay out – raising your premium is how insurance companies make their money back. In order to maintain or reduce your car insurance premiums, you need to constantly be on guard against things that could drive your rates up.

Here are some tips on how to reduce car insurance premiums:

Know What You’re Paying For

Sit down with an insurance agent and find out exactly what you are paying for. You may be surprised to find out that your policy includes coverage and benefits that you don’t want or need. If you own an older car, you should consider dropping collision coverage on it in order to reduce your car insurance premiums. Sometimes, people are actually paying out more in coverage on older cars than those cars are actually worth.

Keep Your Deductible in Mind

You may also want to consider raising your deductibles. When you file a claim with your insurance company, the deductible is the part of the claim that the company is not responsible for – you have to pay a certain amount of money out of pocket before your policy will kick in and you receive money from your company. If you pay more up front and have a higher premium, your deductible will be lower, but if you agree to pay a higher deductible you can get a lower premium. It’s basically a choice between paying now or later. People who choose to raise their deductibles are hoping that they won’t get involved in any bad situations.

Safe Driving Can Be the Key to Big Savings

In order to keep yourself out a bad situation that will cause your insurance policy to kick in and possibly raise your premium, you should always maintain safe driving habits. This doesn’t guarantee that you will never be involved in an accident, but at the very least it will lower the risk. And if you do get into an accident that isn’t your fault, the insurance company will go easier on you.

Car Theft is a Serious Problem in Canada

Another thing you can do to keep your premiums down is to try to reduce the chance of your car being stolen. Car theft is a serious problem in Canada, with around 480 cars being stolen each day in 2003.

A few quick tips for keeping your car safe:

-Always try to park in well lit areas that have a lot of people walking around nearby.
-Never step away from your car and leave the keys in the ignition.
-Don’t leave valuables in plain sight – that’s the best way to tempt a robber to break into your car.
-Install an approved theft deterrent system in your car.
-Avoid valet parking where you are required to hand over your keys to a parking attendant – it’s far too easy for someone to either steal the keys or copy them.