How do I reduce my car insurance cost in Ontario?

Car Insurance

The best way to save money is through comparison shopping, one reason why Stingypig’s car insurance calculator is such a big hit with consumers. With all the differences between insurance companies, getting quotes from the widest range of insurers is key to finding the lowest costs for your needs.

Once you’ve identified the company with which you wish to work, tuning your policy to best match your driving habits and lifestyle can appropriately price your policy.

Here are some key factors to discuss with your agent or broker:

  • Is the amount you drive accurately reflected in your policy? If you’re listed as driving 25 km to work daily, and 30,000 km annually, yet you walk to work and drive 15,000 km a year, you may be overpaying.
  • Are your deductible rates set at a level with which you can cope in case of an accident? While raising your deductible saves money on premiums, the greater cash outlay after an incident may be hard to reach, particularly if you are injured and miss work. Raising deductibles may be a false economy in some cases.
  • Do you have extra coverage that doesn’t apply to your situation? Carrying non-owned vehicle coverage when you never rent other cars may not be worth the additional cost.
  • Have you checked to see that all discounts and promotions for which you qualify are added to your policy? Insurers rarely add discounts without your explicit request. Talk with your agent or broker regularly to ensure any discounts are now applicable to your case.

How Much Money Will I Save If I Increase My Deductibles?

Managing your deductible limits is a great way to control policy costs. A deductible is the amount you pay after an incident before the insurance company contributes. These apply to collision and comprehensive coverage additions to your policy.

Since you’re adopting more responsibility when you select a higher deductible, your insurer responds with a lower rate, because they are risking less on your particular policy. Of course, if a high deductible puts you in financial hardship, choosing a lower amount protects your bank account from a sudden hit after an accident. You’ll pay more per month for that protection. You don’t need to carry the same deductible for both collision and comprehensive coverage. You might opt for a higher deductible for collision coverage and a lower amount for comprehensive, which protects against vandalism, fire and theft.

Once you’ve decided on a car insurance company, working with an agent or broker can pinpoint exactly what each option will cost. Since every insurer has not only their own rates but their own procedures for calculating, precise savings are impossible to pinpoint before you’ve chosen an insurance company and the amount by which you wish to increase your deductible.

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