Whether you buy or lease a car, protecting your investment is essential. Getting vehicle insurance protects your finances if you’re involved in an accident or your vehicle is stolen or damaged. Instead of paying for damages out of your pocket, you can pay annual premiums to an auto insurance company and the company will then handle the costs associated with the accident.
However, the insurance premiums aren’t cheap. Depending on the province, Canadians pay anywhere from $642 to $1680 for car insurance. Whether you have basic auto insurance or full coverage, it’s crucial to ensure you get the best deal possible. Here are some valuable tips to get affordable car insurance.
Shop Around
If you’re looking to reduce your annual premium or need to renew your policy, start by shopping around. Get quotes from several providers and look for competitive insurance rates and flexible payment options. Remember, many insurance carriers’ policies will have hidden costs. So, always look for companies that offer transparent and flexible payment options.
Another option is to work with insurance brokers, such as AHA Insurance. Brokers help you find the most appropriate solution for your specific needs. Plus, the entire process is fast, easy, and affordable.
Consider Your Liability-Coverage Limits
Each province that requires liability insurance has a minimum coverage requirement. Of course, you can choose more coverage at an additional cost. The higher the coverage limit, the higher the insurance rate.
However, before deciding on your coverage limit, consider any assets such as your savings, home, or investments. You could be putting these at risk if you cause an accident that results in property costs that exceed your coverage limit. So, be sure to choose coverage limits that reflect the value of your combined assets.
Think About Raising Your Deductible
The deductible is the amount you’ll pay toward the cost of an auto insurance claim. By raising your deductible, you may lower your monthly premium. Before making a decision, consider your overall financial situation. If the deductible is too high, it might cause a financial burden if you ever need to make a claim. Go down this road only if you have saved enough money to cover the deductible in case of an accident.
Reduce Coverage On An Older Car
If you have an older car you have already paid off, consider dropping some of your coverage. For example, you can skip comprehensive and collision coverage. These coverage options cover repairs or reimburse you for the value of your vehicle. Depending on your specific situation, you might get less expensive coverage for comprehensive and collision or opt-out from such coverage altogether. Be sure to check the estimated value of your car and weigh it against the comprehensive and collision deductible and the annual cost of this coverage in your insurance quote.
Claim Your Car Insurance Discounts
Discounts are a surefire way to save on car insurance. Many providers offer discounts for specific groups such as students, veterans, and military personnel, and accident-free drivers. Moreover, insurance carriers often offer deals on coverage for cars with specific features such as airbags, anti-lock brakes, and anti-theft systems.
Likewise, if you have more than one vehicle insured or have homeowners or renters insurance with the same insurance carrier, you may qualify for a discount. Paying your premium in full or enrolling in autopay is also likely to reduce the cost of your insurance.
Consider Usage-Based Insurance
If you’re an excellent driver, consider getting a usage-based discount. By signing up for such a program, you let your carrier collect car “telematics” data for a discount. These programs track specific driving behaviors such as speed, annual mileage, acceleration, time of day, and phone use while driving. Generally, the safer your driving habits are, the more you could save on your premium.
You may also consider getting hourly car insurance from GoShorty or a similar company. This temporary car insurance can provide comprehensive coverage for one hour to 28 days. Short-term insurance is advisable if you’re driving someone else’s car on a long trip or teaching your teenage child how to drive.
Furthermore, hourly car insurance is also recommended for car-sharing or borrowing a car for running errands or emergency purposes. A short-term cover can provide peace of mind and protection against untoward events like roadside accidents.
Consider The Cost Of Insurance Before Purchasing A Car
Some cars are more expensive to insure than others, so this is something to have in mind if you’re about to purchase a new vehicle. The insurance cost depends on several factors such as the manufacturing year, model, the cost to repair air, and the likelihood of theft.
For example, luxury and sports cars are more expensive to insure because the cost of repairs is much higher, and they are at a greater risk of fault accidents. On the other hand, vans, sedans, and family-friendly cars have lower insurance rates.
To find the most affordable insurance for your vehicle, it’s a must to do your homework. It can be overwhelming to choose from a multitude of insurance providers claiming to provide reasonably priced auto insurance policies but with hidden charges and strict terms.
Before you choose a car insurance provider and plan, create a shortlist of your area’s most trusted car insurance providers. Ask recommendations from trusted people who have availed themselves of auto insurance from those companies. Read reviews online, on dedicated forums, and on social media.
Interview an insurance agent to get direct answers and seek clarifications. Check out if those companies have awarded settlements in the past. Some insurance companies promise the best coverage but fail to show proof of settlement.
Final Words
Price is undoubtedly an essential factor when considering car insurance. However, you also need to choose a reputable insurance company and coverage that meets your needs. Shopping around is the key, and with the tips we’ve provided, you can get the best deal possible.