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Tips for saving on car insurance premiums

Tips for saving on car insurance premiums

1. Buy auto and home insurance from the same insurance company

Get a Multi-line Discount if you buy both auto insurance and home insurance from the same insurance company. You can also get an additional Multi-Vehicle Discount if you insure multiple family vehicles with the same insurance company. Because the discount is relatively large, it is strongly recommended to Insure the house and vehicle insurance with the same insurance company as much as possible.


2. Don’t wait until you’re about to renew your policy to start comparing prices

Car insurance is usually purchased for a year and then renewed annually. Many people have a misunderstanding that they feel that they have to wait until the current policy is about to expire before they can start looking for other cheap insurance companies. This kind of waiting is actually completely unnecessary, especially when some important changes in the personal circumstances of some customers during the policy period lead to a large increase in premiums (for example: buying a new vehicle, moving to a new address, starting a family, The children in the family just got their driver’s licenses, etc.).

 If you are not particularly satisfied with your premiums, or your premiums suddenly rise due to changes in your personal circumstances, you can always look for a more suitable insurance company. While early cancellations may incur a small penalty, they often result in higher premium savings.


3. The annual premium is cheaper than the monthly payment

Monthly auto insurance payments typically require an additional 1.3% processing fee. For users with higher premiums, consider making a one-time payment to save on monthly fees.

4. For old cars, consider purchasing only three guarantees

The difference between the three guarantees and the full guarantees mainly lies in the protection of the driver’s own vehicle. If the car you are driving is old and not of high value, you can consider only insuring the “three guarantees” to save on premiums. If the market price of a car is 1500 Canadian dollars, and the price difference between the three guarantees and the full insurance is 500, you can consider only the three guarantees. In the event of a liability accident in the future, buying a similarly priced vehicle at your own expense will not cause excessive financial loss or stress to the driver.


5. Novice drivers are recommended to complete the “General Certificate” course of the driving school

When novice drivers buy car insurance, the price is usually higher because of less driving experience. The general certificate course is a safe driving education course specially set up for junior drivers, usually including 20 hours of theory lessons and 10 hours of driving practice. If a novice driver has completed a general certificate course within the past 3 years, you can get a discount on the purchase of insurance, which is very cost-effective.


6. Install the driving record device or APP of the insurance company

In recent years, several insurance companies have offered discounts on driving record devices. If you agree to install the insurance company’s driving record device or APP, the insurance company will provide you with an incentive discount (usually 10%-20%) for the first year. The device will record the driver’s driving habits (such as sudden braking, speeding, kilometers, driving time, etc.) during use. If the driver’s driving habits are good, the insurance company will renew the insurance based on the tracked data and ratings. Continue to offer reward discounts (most give up to 30% off). If the driver has poor driving habits, the insurance company will not punish or increase the premium. If you don’t mind sacrificing a little privacy, you can reduce your premiums considerably by installing such equipment and driving carefully.


7. Increase your bottom line

When buying car insurance, the higher the deductible you choose, the cheaper the premium will be. Ask your insurance broker more about the different premium options and their corresponding prices, compare them, and choose the most cost-effective premium option.


8. Improve the safety performance of the vehicle

Replacing snow tires on your vehicle during the winter can make your driving safer. Almost all insurance companies offer discounts to customers who have snow tires. If your vehicle is also equipped with an insurer-approved anti-theft device, you can also receive additional discounts for this.

 9. Check if there are any group discounts or membership discounts that apply to you

Some insurance companies offer discounts for certain groups or members (eg: professional associations, college students, CAA members, etc.).


10. For long trips abroad, remember to suspend your car insurance

If you need to travel overseas for an extended period or to visit family (usually at least 45 days), remember to contact your insurance broker to suspend your car insurance to avoid continuing to pay premiums without using the vehicle.


11. Plan ahead for your car buying and housing options

Insurance companies will rate the risk of different models based on the accident rate, theft rate, and claims rate of different models in the past. Car insurance with a lower risk rating will also be relatively cheaper. At the same time, the driver’s residential address also has a very large impact on auto insurance premiums. Before buying a car or choosing an address, if you have several different options, you may wish to compare the premium prices in advance to make a long-term plan for your auto insurance expenses.

12.  Keep your personal and vehicle usage information up to date

Our personal circumstances change frequently, and many of these changes may help us reduce car insurance premiums, so it is extremely important to update the insurance company with appropriate information promptly. For example, the driver has obtained a higher-level driver’s license, the driver’s address has changed, the driver’s marital status has changed, and the number of kilometers used by the car has changed.


 13. Plan ahead and buy additional insurance to avoid some factors that may lead to higher premiums

As mentioned earlier, liability accident records and traffic tickets can lead to substantial increases in insurance premiums. If you have a good driving record in the past, consider purchasing the following add-ons for yourself at an extra cost:

  • Accident Waiver – This additional insurance can be purchased if the driver has not had any liability accidents in the past certain number of years (usually 6-7 years). After purchase, the first liability accident will not affect the price of the driver’s renewal. It is recommended that customers who meet the purchase qualifications purchase.
  • Minor Conviction Protection – This supplement can be purchased if the driver has not had any traffic tickets in the past 3 years. After purchase, the first small ticket (such as a stop sign without a stop, running a red light, etc.) does not affect the price of the driver’s insurance renewal. Recommended for qualified customers to purchase.


The cost of such additional insurance is not high, but once used, it will save you hundreds to thousands of premiums.

Keep a good driving record, car insurance record

A responsible accident record can cause your premiums to go up significantly, and the impact can last for several years (six years or more). Traffic tickets within the past 3 years can also have a noticeable impact on your premiums. Cultivating standardized and safe driving habits can not only protect your own safety, but also avoid liability accidents or get traffic tickets, and save you and your family a lot of unnecessary insurance premiums.

Also, don’t leave a bad insurance record with any auto insurance company. Bad records mainly refer to two aspects, one is that there have been false statements or fraudulent behaviors, and the other is that the insurance company has canceled the policy due to arrears. Such bad records will lead to a substantial increase in your future insurance premiums.

Compare prices from different companies & choose a trusted insurance broker

 The price calculation for insurance companies is very complicated. Although the factors that affect the price are similar, different insurance companies will focus on different factors differently, and there will be some differences in the discount items of each insurance company. Therefore, no insurance company in the market is “invincible on price forever”. We represent dozens of insurance companies and are familiar with the discount combinations of different companies, so please feel free to contact us for the best auto insurance quotes.