If you want to drive in Canada, there’s an important thing you need before you hit the road: car insurance. Every single driver in Canada is required by law to have a car insurance policy. If you get caught driving your car without insurance, the penalties are steep. Your car could end up being impounded for up to 90 days, and your license could be suspended for up to a year. Repeat offenders may also be facing jail time.
It's not all bad news! There are ways to save on your car insurance policy. We’ve put together a list of tips and tricks that can help keep your car insurance bill down. Keep reading to learn more about ways to save on car insurance in Canada.
Follow these tips to save on car insurance
Always ask about discounts
It never hurts to ask the broker you’re speaking with about what discounts may be available. There may be special offers you qualify for – it never huts to ask! Some popular discounts that insurance companies offer are: multiple car discount (when you own more than one vehicle) and snow tire discount.
Identify the coverages you need and do away with those you don’t
Car insurance policies offer a variety of different types of coverage. You may not actually need some of those coverages. This will depend on a number of factors, including the type of vehicle you drive, your driving habits and driving frequency, and of course, your budget. It’s wise to consult with a car insurance expert and discuss the coverages you ought to keep and the coverages that are safe for you to let go.
Become a better and safer driver
Did you know that some insurance companies actually offer extra savings to those who have completed a defensive driving course? Check with the company when shopping for a policy to see if they offer this advantage! In addition to a course, be sure to always drive safely and follow the rules of the road while driving. This will reduce your likelihood of being involved in an accident, which can help keep your premium low.
Invest in safety
Insurance companies will consider the type of vehicle you have when determining your insurance premium. Look for vehicles with extra safety features, such as back up cameras and anti-theft devices. These features may result in lower premiums.
Increase your deductibles
If you agree to contribute more towards your deducible in the case of an accident, your premium will be lower as a result. Make sure you think carefully about your budget before making this decision. Determine what you would actually be able to afford out of pocket in the event of an accident.
Review recent changes to your driving habits
Those who don’t drive every day or only drive short distances may be eligible for a less expensive premium. If your place of work is now closer to your home, or if you are now working from home and using your car less, make sure to let your insurance company know.
Pay your insurance on time
It’s important to pay your insurance bill on time. If you don’t pay your insurance bill, the insurance company can cancel your policy for non-payment. If this happens, it can result in higher premiums for years to come.
Types of discounts on car insurance
In addition to the tips and tricks listed above, insurance companies have various discounts and promotions available to customers. Here are a few of the discounts you may be able to take advantage of:
Multi-policy discount or bundling
This discount will apply if you buy home insurance and car insurance from the same company. You might save as much as 15%.
If you are a member of a group or association such as a union, you may qualify for group discounts. Be sure to let your insurance broker know if you belong to any associations or groups. They can check for any applicable discounts.
If you have been with the same insurance company for three years or more, you may qualify for a loyalty discount.
Some insurance companies offer discounts for those who have recently retired. Make sure to check with your insurance broker to discuss if this is available to you.
Contact BrokerLink to learn more about how to save on car insurance
Here at BrokerLink, our brokers are experts when it comes to insurance. We have extensive experience in creating custom and tailored insurance policies that will fit you and your lifestyle. Our experience also means we can help you find ways to save on your insurance premium you may not have considered. If you’re interested in learning more about ways to save on car insurance, or even just your insurance options in general, we’re here to help!
FAQs on how to save on car insurance in Canada
Will my car insurance cover my dune buggy?
Off-road vehicles are still technically considered a vehicle. They will require their own car insurance policy by law. Please speak with a broker today to discuss getting an insurance policy for your dune buggy.
Can I insure my RV, even though I don’t always use it?
It is recommended that your RV is insured all year round, regardless of how often you use it. This is because it could be prone to both theft and damages at any time, even if stored in a secure facility.
Is it possible for my car insurance premiums to increase in the future?
Yes, unfortunately it is possible for your premiums to go up in the future, even if you have a fantastic driving record. Some of the factors that could cause your premium to increase are out of your control. For example, your address and the amount of driving experience you have can have a significant impact on your premium.