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Ways to save on your Auto Insurance
Auto Insurance
First published by admin June 28, 2018

Having adequate car insurance is both smart and prudent, but there’s no question that it adds to the expense of driving. Insurance premiums can vary by hundreds of dollars depending on a number of factors. Review your coverage upon renewal to make sure your insurance is set up according to your needs, and follow these steps to reduce the bottom line on your auto policy.

You avoid approximately 3% of your insurance cost in administrative and processing fee if you pay for the year upfront rather than going on a monthly plan.

The car you choose to drive is a major factor in what you’ll have to pay for the car insurance; some models are a higher liability! Before deciding on a vehicle, ask yourself if the car is more likely to be stolen? Is it more expensive to repair? How well does it protect you and your passengers in the event of a collision?

New drivers who take, and pass, an approved driver’s training course save on their insurance premiums as it shows they’re learning to be safe and responsible drivers.

As you’re seeing, Insurance companies like safety measures. Winter tires making driving in the winter much after; they offer up to 50 percent or more traction than all-season tires. Having more control of your vehicle during the cold, snowy winter is worth the investment. The discount could be as much as 5%.

By taking a little more risk upon yourself, you’ll save money on the policy and if you don’t make a claim over the years, that’s money saved. Be careful not to set the deductible too high as to cause financial stress in the event of an accident.

Graduates can maximize their savings because many schools, especially post-secondary, take part in a group insurance program. Same goes for many professional associations, societies and employers.

Buying your auto insurance from the same company that covers your tenant/home/condo policy will qualify you for a Multi-Line discount. The discount, which may apply to one, or sometimes even both policies usually ranges from 5 to 15 percent.

You might be inclined towards making some modifications to your ride but be mindful of the potential increase in your insurance premiums. Non-performance enhancements, valued around $1500 or less (the threshold varies by insurer) typically won’t affect your rate; but if they’re worth more, you may find your premiums increasing as you’ve increased the value of your car.

Performance enhancing modifications on the other hand, make your car go above and beyond what it was designed to do, that means it can no longer be rated the same as a non-modified factory-built vehicle, If you make such changes, they’ll cover your rates and potentially your coverage.

It’s good to keep your insurance going as long as possible to maintain an ongoing record. Even if you don’t drive regularly, it’s best to be listed as an occasional driver to build up and maintain your insurance history.

If you don’t drive your vehicle all year round, you can amend your policy and keep the comprehensive coverage on it to protect it against any damage and theft. Storage insurance is typically for people who have a “summer only” car if they don’t like to drive in the winter, snowbirds that take off for warmer weather come winter and leave their car behind or for people who will be abroad for a couple months.

Remember, if you go for this, you’re not covered to drive on the roads. When it’s time to take the car out of storage, you’ll need to give your insurer a call to make sure you put all the legally required coverages.