by Jason Davis
Published Wed, Dec 27th 2017, 07:47 | Finance
Auto insurance is mandatory by law in Canada. The minimum liability insurance for most of Canada is $200,000 and $50,000 in Quebec. This type of auto insurance largely covers other from the effects of potential accidents and not risks to your car. So it is advisable to take a more than the minimum requirement.
Here are some ways in which you can cut the cost of your auto insurance:
1. Compare car insurance - Compare car insurance policies in terms of premiums, coverage, terms and conditions, discounts and see which one best fits your requirement. It is a good practice to compare car insurance not just at the time of taking a new policy, but also when it’s up for renewal.
2. Install a GPS tracking device – If you install a GPS tracking device, you can bring down you save up to 10-15% of your car insurance payments. The GPS data can reveal a lot about your driving and car usage habits. So if you’re a responsible driver with limited usage, it’s wise decision to look out for Usage-based insurance and bring down payment levels.
3. Use winter tires – As per government regulations, you get a discount of around 5% of your collision coverage or $72 on each vehicle each year if you use winter tires during the winter months. Do enquire with the insurance company when the discount would be received.
4. Bundle your home and auto insurance –When you bundle your home and auto insurance together, the insurance company gets more business. And they would pass on some of the benefits to you. So you stand to gain on both the home and auto insurance.
5. Opt for a higher deductible – The deductible is the amount that you are required to cover your expenses even before the insurance company would reimburse your claims. By opting for a higher deductible, you can bring down the premium payments. But you would need to have sufficient funds for the upfront payment.
6. Anti-theft mechanism – If the insurance company protects you against risks. Now if the risks are reduced, the coverage can also reduce and so can the premium. By installing anti-theft mechanism in your car, the chances of theft are considerably reduced. This helps in bringing down the cost of your car insurance.
7. Professional Affiliations – Quite a few professional associations, companies and unions have partnerships with insurance companies. Under the arrangement, they offer better deals to their members or employees. Similarly, universities also offer discounts to their students as well as alumni.
8. Clean record – If the driver of the car is a rash or responsible then the risks to the car, driver and even others are very high. So the insurance costs also increases. A clean record, on the other hand, can reduce costs.
You should always look out for options to reduce your auto insurance costs not just at the time of taking the policy but when your policies are up for renewals. It’s important to keep your car and the records up-to-date to ensure maximum benefits.