According to statistics, Canadian drivers pay, on average, $1,300-$1,800 annually for car insurance. But the cost of car insurance can vary greatly depending on where you reside.
Each province and territory has a unique auto insurance system. As a result, the protection level and premiums that motorists receive across Canada vary. If you live in the city of Calgary in Alberta, you might be paying some of the highest car insurance rates in Canada. So, you must do your homework and look for an experienced broker that can help you find the best auto insurance for Calgarians that offers budget-friendly premiums suited to your needs.
There’s no single solution to finding cheap insurance for your vehicle, but the tips and tricks in this article will help you understand the car insurance system and give you practical tips to minimize your costs.
Adjust Your Insurance Policy to Your Needs
Different people have different insurance needs, so try to find an insurance company that can offer a plan that caters to you. In Canada, four types of coverage are mandatory:
- Third-party liability—if you injure or damage another person’s property;
- Accident benefits—if you are injured after an accident;
- Uninsured car—if an uninsured driver hits you;
- Direct Compensation for Property Damage (DCPD)—it means that you’ll only deal with your insurance company regardless of who is at fault. Your insurance provider receives compensation from the other insurer.
The minimum third-party liability (TPL) is $200,000, but the default is usually set at $1 million. If you want cheap auto insurance, you should get the minimum. However, since TPL claims exceed $1 million, there might be better options than this since you’ll be paying that difference out of pocket.
Accident benefits, for instance, pay for medical and rehabilitation treatment if you’re injured, and it also covers income replacement, as well as other services needed for recovery. In addition, if you still have good health insurance at work, including short and long-term disability and life insurance, you can reduce this to the minimum coverage.
If You Don’t Need the Optional Coverages, Drop Them
Consider avoiding collision insurance if you own an older car. If you are paying a $1,000 deductible for a car that is only worth $500 and you need to repair it, then you may want to drop collision coverage. Save the money and put it into a fund for a brand-new car.
For cheap car insurance, you can also opt out of comprehensive insurance. It only protects you when your car is not in use, such as if it gets flooded, damaged by fire or hail, or if a tree falls on it.
Shop Around and Ask for Quotes
Don’t take anyone’s word for it when they say that their car insurance is the best. Make sure you do your research and collect multiple quotes before settling on one. Just because certain insurance companies spend a lot of money on advertising, it doesn’t mean they are the best on the market. You might find a suitable car insurance provider in your area if you consult with a local broker to help you find the right match for you. In addition, search for online car insurance quotes to compare the prices charged by different companies.
Track Your Driving
You can consider getting usage-based insurance (UBI), especially if you are a student or young driver. Insurance companies tend to charge young males much higher rates for auto insurance due to stereotyping.
UBI records your driving habits, measures how fast you drive, how aggressively and quickly you brake, how you accelerate and turn, and more. By following the rules of the road, you demonstrate that you are a responsible driver and, thus, are less likely to be involved in an accident. With this system, you can easily monitor your driving on your smartphone and get discounts for driving well.
Some auto insurance companies offer UBI in the form of an app or a device that is installed in your vehicle to monitor your performance beyond generic statistics.
Bundle Insurance Plans
Insurance plans can be very expensive and time-consuming to manage, but you can save money by bundling your insurance plans together. For example, you can have your car and home insurance with the same insurance provider.
Bundling your insurance plans allows you to get discounts and other benefits that you wouldn’t be able to get if you had separate policies. This means that you can save money on premiums and have better coverage for less money. Not only is this a great way to save money, but it also simplifies the process of managing multiple insurance policies.
By following the simple tips and tricks above, you can get cheap car insurance that may result in instant savings. So, review your policy annually, shop around and compare rates, keep a clean driving record, and consider bundling policies together so that you can keep your insurance costs down.