So you’re ready to buy your new car and it’s time to shop for car insurance options. Obviously, everyone would like to pay the lowest possible premiums and save money, but how exactly can you do that?
While most would say the only way to pay lower premiums for car insurance is to be over 25 and have no accidents on record, there are more actions you can take to ensure you are saving money. It may take a little bit of extra time, but shopping around and getting competitive quotes is the best way to make sure that you’re not overpaying for car insurance.
On that note, here are eight sure-fire ways to help save you money on your car insurance premiums:
1. Lower Your Deductible
As a rule of thumb, the higher your deductible is, the lower your insurance premiums will be. If you can afford to pay more costs for damages if something happens to your car, choose a $1,000 deductible instead of a $500 deductible to save on annual insurance premium costs.
2. Drop Extra Insurance Options
Sometimes it’s just not worth paying for additional insurance options if your car is not worth that much to begin with. This is because the amount you pay for the deductible plus the amount you pay for the premium may be less than the value of the car itself. A rule of thumb to follow is that if a car is worth less than $3,000, drop these coverages.
3. Buy a “Lower Profile” Vehicle
A significant factor that determines the cost of car insurance is the kind of car you are driving. Some cars are prone to getting stolen much more often than others, while others have a record for being more expensive to repair. Generally, such cars will cost more to insure compared to say, a Subaru Legacy, so always keep this in mind. The sportier the car, the higher the premium you will pay.
4. Take Advantage of Discounts
When looking around for car insurance options, be sure to look into available discounts offered. Some insurance companies give discounts to certain groups of people, such as those who drive less than a certain number of kilometres to work. Other companies also offer discounts specifically to University graduates, such as TD Insurance. If you have a good credit record, you could also be eligible for further discounted premiums.
5. Investigate Anti-Theft Discounts
Your car is at a lower risk of being stolen when you have an anti-theft device, resulting in insurance companies sometimes offering further discounts for added security measures. Check with your insurance company and see if having an additional alarm or immobilizer installed in your vehicle can further reduce your rates.
6. Practice Defensive Driving
Your insurance premiums are greatly affected by your driving record, so it definitely helps in the long run to maintain a clean record. Tickets and convictions have a negative effect on your insurance rates for up to three years, and major accidents can affect your insurance premiums for much longer. Remember, never drink and drive, and always account for others on the road possibly making errors.
7. Compound Your Savings
If you require additional insurance policies or already hold other policies with an insurance company, such as home or life insurance, find out what discount your insurance provider can offer to also provide car insurance along with your other policies. Most insurance companies offer discounts when you buy both your home and auto insurance policies with them, which could save you up to 10% off your insurance premium.
8. Enroll for a Drivers’ Education Programme
If you are a new driver, completing an accredited driver’s education course will result in significantly lower premiums for your car insurance. Though you will have to pay a hefty fee upfront (typically between $600 and $700 dollars), you will be much safer on the road, and you will be eligible for a 10% discount on your insurance premium.
Follow these eight sure-fire ways to save money on car insurance, and you’ll have some extra cash around for a rainy day or in case you wish to customize your new car.