With the rise of inflation and the increasing costs of groceries and gas, among other things, many car owners are looking for ways they can save money, including on their car insurance.
Ontario drivers will be happy to know there are quite a few ways they can lower their car insurance premiums and save money every month. Continue reading below to discover all the ways you can save money on your car insurance.
How Much Does Car Insurance Cost?
Your car insurance rates will be different than your neighbours, friends, family, or anyone else you know because everyone’s auto insurance costs depend on numerous individual factors. Some of these factors include age, gender, location, driving record, car make and model, marital status, and more. On average, in Ontario, an individual will pay approximately $1,500 annually for car insurance in 2022. Oftentimes teen drivers or new drivers may pay higher rates due to their lack of experience, making them higher-risk drivers to insurance companies.
How to Save Money on Car Insurance
1: Use an Insurance Broker
Comparing insurance prices is one of the best ways you can find the most affordable policy with the best coverage for your individual situation. When you work with an insurance broker, they will take the time to research different rates and coverages for you. They will work with many insurance carriers to find the best price and coverage that meets all of your insurance needs. They also have a lot of experience within the industry and can be a very helpful point of contact for any questions you may have. Their knowledge advice and experience can also help you to discover different discounts you are eligible for. To learn more about how to choose an insurance broker to work with, click here.
2. Consider Paying a Higher Deductible
Your deductible and the price you pay for your insurance are directly related! If you pay a higher deductible for your car insurance, your premium may decrease. The amount you save will depend on how much you increase your deductible, but it can be as high as a 15% to 30% decrease.
3. Bundle Your Home and Car Insurance
Bundling your insurance policies with one insurer can help you save money! The most common bundle of home and auto insurance will qualify you for savings on both your auto and home insurance policies. These savings often range from 20% to 50%! If you have motorcycle or RV insurance, you may want to consider bundling those with your home and auto as well.
4: Add Multiple Cars or Drivers to One Policy
You can also add multiple cars or drivers to one car insurance policy for potential extra savings. If you have multiple vehicles within your household, you can combine them all to save up to 10%. Typically, the drivers on the policy must live in the same house and be related by marriage or blood. Two people that are not related may be able to obtain a discount if they both own the vehicle. Make sure to speak with your Ontario insurance broker for more details.
5: Always Drive Safely and Keep a Clean Driving Record
Making sure you aren’t involved in any accidents and that you maintain a clean driving record is a great way to avoid increases in your insurance prices. To do so, always make safe driving your number one priority. Being a safe driver is your best way to save money and keep everyone on the roads, including yourself and your family, safe. Another tip to increase your safety and lower your insurance rates is to take a defensive driving course. You may qualify for a car insurance discount if you take a course at a driving school that is approved by the MTO. Some insurance carriers may also offer a safe driver discount, your insurance broker will be able to advise you on which companies.
6. Choose A Safe, Low-Risk Vehicle
Certain vehicles will result in higher insurance premiums, so when you are shopping for your next vehicle, be sure to consider insurance prices. Vehicles that are more expensive or are considered rare may cost more to insure, therefore costing you more annually. To find a car that will allow you to pay cheaper insurance rates, look for one with high safety ratings. You should also consider getting a car that is less likely to be stolen. If a car is a less likely target for thieves, you may not have to pay as much to insure it. You may even qualify for an insurance discount if you purchase a car that is brand new or less than 3 years old. This discount is typically 10%. Be sure to inquire about this discount with your insurance broker as some variables can exclude you from being qualified for this particular discount. To learn more about vehicle options for cheap car insurance, click here.
7. Drive Less or Use Public Transportation When Possible
Individuals who use their car less often and primarily for short distances can save money on their car insurance premiums. If you don’t drive very often or have a short commute, this is a detail you should inform your insurance broker of so they can determine the correct amount you should be paying for your insurance plan.
8. Park in Covered, Low-Risk Areas
If you can park your car in a garage or in a private parking area, may help to decrease your insurance premium. Having your vehicle parked in a garage decreases the risk of theft, or damages to your vehicle from vandalism, or weather-related issues.
9: Consider Installing an Ant-theft Device
As mentioned above, if your car has a higher risk of being stolen, you may pay higher insurance premiums. Some insurance companies may offer a discount if you install an anti-theft device on your vehicle.
10: Ask Your Insurance Broker About Possible Discounts
Contact your insurance broker to inquire about any car insurance discounts you may be eligible for. Some may include owning an electric or hybrid vehicle, having good grades in school, or installing winter tires.
11: Consider an Electric or Hybrid Vehicle
Some insurance companies may offer up to a 10% discount on your car insurance premiums if you drive an electric or hybrid vehicle. For more information on hybrid and electric vehicles, click here.
12: Pay Your Car Insurance Premium In Full
Paying your car insurance premium in full, instead of making monthly or quarterly payments may help you save money.
13: Be Loyal to Your Insurance Carrier and Don’t Let Your Insurance Lapse
Having a lapse in your insurance coverage can cause your car insurance premium to be higher. Some insurance companies may offer discounts to those who stay with them year after year.
14: Ask Your Insurance Broker Before Making Vehicle Modifications
Some vehicle modifications may increase your car's replacement value and repair costs. Certain modifications may also make it a target for theft. Make sure to speak with your insurance broker before making any vehicle modifications. Learn more about how vehicle modifications can affect your insurance here.
15: Set up Automatic Payments
If you miss a car insurance payment or two, you may be at risk of having your insurance cancelled. If your insurance is cancelled, getting new insurance may prove to be more difficult, and more costly. Setting up automatic payments is a great way to ensure you never miss a payment.
16: Consider Reducing Optional Insurance on Older Vehicles
If your car is older and worth less than 10x the amount you pay for the insurance premium, you may want to consider not having comprehensive and/or collision coverage. To see if this applies to you and your car, you can look up the value of the vehicle for free at Kelley Blue Book, the National Association of Auto Dealers (NADA), and TrueCar.
17: Ask About Group Insurance Programs
Youngs Insurance Brokers offers group home and auto insurance discounts to members of Ontario companies, unions, or associations through group buying power. Contact us today to see if you qualify. Eligible members may be able to save up to 30%!
Youngs Insurance Brokers will work with you to assess your personal situation and consider the numerous variables that go into determining your insurance policy so we can help you find the best insurance coverage, at the best price. We have relationships with over 25 insurance carriers and over 100 years of experience in the insurance industry. Let us use our experience, relationships, and expertise to help you save money on your car insurance!
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Disclaimer: The information provided on this blog is for educational purposes only and is not intended as professional insurance advice. The coverage, terms, and conditions of each insurance policy are unique and subject to individual circumstances. The information provided does not guarantee the availability or suitability of any insurance policy for your specific needs. You should not rely on the information in the blog as an alternative to professional advice from your insurance broker or insurance company. If you have any specific questions about any insurance matter, please consult a licensed insurance broker for personalized advice and guidance.