Secrets to Save Money on Car Insurance

February 15, 2017

The average Canadian is paying roughly $1,000 annually on car insurance, and if you’re already on a tight budget, this can quickly add up.

If you own a vehicle, having car insurance is an absolute necessity. Based on the cost of accidents, theft and other automobile related losses, insurance provides drivers with a safety-net in case of an accident on the road. However, it comes with a price. The average Canadian is paying roughly $1,000 annually on car insurance, and if you’re already on a tight budget, this can quickly add up.

If you’re interested in lowering your car insurance rate, consider these three tips:

1) Your Credit History

Your credit history is a fundamental part of your finances, and insurers look at an applicant’s credit score to determine how liable they might be. A low credit score and poor history can affect the rate that you’re quoted, so it’s important to make sure that your credit report is up-to-date and clear of any mistakes.

Before inquiring about car insurance, check your financial statements to make sure that your information is accurate. An established credit history that shows you pay your bills on time and can manage accounts responsibly means you’ll be paying lower insurance costs.

2) Your Driving Record

Things like parking and speeding tickets, demerit points and multiple accidents on your driving record can negatively affect how an insurer calculates your coverage. Multiple driving violations could spike your rates, which could mean that you’ll be spending more compared to someone with a clean driving record. How you drive has a huge say on how much your car insurance will be, so not only is it important to keep this in mind when you’re shopping for quotes, but it also means that you must comply with the law if you want to prevent a raise in price.

3) Your Coverage

How much car insurance is enough for you? Broken down into different types of coverages, picking a package that includes the exact coverage that you need to stay safe, while making sure that you’re not overpaying on fees that you don’t need, requires research. Full package insurance, which includes everything from collision coverage to property damage, could be an unnecessary expense if you know that you’re a safe driver.

Typically, the most basic of insurance policies will be enough protection on the road. However, it’s always a good idea to compare quotes online and talk to your car insurance company to see what they suggest too.

Things like your financial history, age and gender, and the amount and type of coverage that you’re planning on purchasing can affect how much you’re paying to be insured on the road. The next time you’re shopping for car insurance, look for discounts, and keep these tips in mind if you want to lower your quotes and save money.

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