Auto Insurance: 6 tips to save on your premium

1. Drive a smaller, older, or less energy-consuming car  

The model of your car is one of the most important factors for calculating your insurance. Insurers take into account, among other things, the propensity of the vehicle to be stolen, its sporting vocation, its security classification, etc.

Check Insurance Bureau of Canada (IBC) website, for vehicles that could cost you more insurance, such as: 

  • the most stolen vehicles in the country
  • sports vehicles
  • the biggest displacements
  • the SUVs 
  • models recognized as being less safe for their occupants

You can also take a look at hybrid or electric cars, which sometimes allow you to get a discount on your insurance. 

2. Install an anti-theft device

Regardless of the vehicle, insurers will generally offer you immediate discounts if you install an anti-theft, tracking or immobilizer system. Chipping the main components of your car can also lower your premium.

Plus, it gives you peace of mind knowing that your vehicle is scouring thieves … 

3. Make sure your credit score does not contain errors

Before giving you a price for your home and auto insurance, insurers make a reading of your credit score. 

However, credit files may have errors, which could penalize you when calculating your premium. 

To avoid this situation, take the time to request a copy of your credit report once a year. To obtain this service, at no cost, you must contact Equifax and TransUnion. If you find errors in your file, have them fixed quickly! 


4. Trade and compare before buying 

Like anything else, it is advantageous to negotiate with your insurer, your broker, or even to shop for your insurance. It’s a healthy process to see what the insurer market can offer you.

Insurers’ programs change from year to year, just as your needs change over time; and sometimes just a phone call to get a discount on your premium, or to find an insurer offering a new and better policy. 

Do not hesitate to mention your membership of a club, an association or a professional order: some insurers offer discounts to active members of recognized associations.

Also, by combining your auto and home insurance with the same insurer, you could save big! Indeed, they usually give a substantial discount to people who insure several goods with them.

5.Create a tailored insurance policy

Evaluate which protections and endorsements you are adequately protecting, and ask that what seems superfluous be removed from your policy. The more protections you have, the more expensive it is … 

Calculate as accurately as possible the annual mileage you are traveling with your vehicle. Your insurer takes this factor into account in setting your premium. The less you ride, the less you pay! 

If you have a good risk tolerance, you can also reduce your premium by increasing the deductible to pay in the event of a claim. Be aware that if something goes wrong, you will have to pay more.

6. Be safe while driving

Distracted drivers, whether by their smartphone or something else, cause accidents that increase the number of claims from insurers. By adopting a safe driving behavior, you not only help improve the road safety record, but you can also receive a “good driver” discount if you have not had any complaints in recent years.