A guide to auto insurance discounts
Having auto insurance is the law, but what you pay will depend on a number of factors – including the discounts you qualify for.
Never hesitate to ask your broker what is available especially when comparison shopping. Discounts vary by insurer, but we’ve compiled a list of some of the most common ones and others you may not know about that can help save on premiums.
1) Bundle your policies – If you have both your auto and home, condo or tenant insurance policies with the same insurer, this will qualify you for a discount. The amount varies by insurer, but this is one of the easiest ways to save. Don’t forget if you own another property – such as a cottage – that works too!
2) Multi-vehicle discount – Insuring multiple vehicles under the same policy will save money. This is useful when family members live in the same household but drive separate vehicles.
3) Pay annually – If you pay for your coverage up front, you’ll avoid administrative fees that are applied when you pay monthly.
4) Increase your deductible – When you make a claim, the deductible is the amount you are responsible for paying as a result of an insured loss. If your deductible is higher it likely will reduce your premium. Just be sure you can afford to pay it if a claim is necessary.
5) Stay claims-free – If you have no claims in your driving history, many insurers will reward your good driving habits.
6) Winter tires – Changing your tires when the cold weather sets in makes your vehicle safer. In Ontario, for example, it’s mandatory for insurance companies to give drivers a five per cent discount if they install winter tires. Depending on the insurer, however, you’ll have to put them on by a certain date (normally November 1 or December 1) and keep them on for a set period (normally March 15 or April 1). Check your policy to be sure.
7) Young driver’s discount – New and young drivers can qualify for savings when they take a government- recognized driving course. Since they don’t have any driving history, this is one of the best ways to reduce premiums. In Ontario, if you complete the Young Drivers of Canada program or another Ministry of Transportation-approved course, you could be eligible for a discounted rate. The driving school will provide a certificate of completion once you pass the course.
8) Enrol in telematics - More Canadian drivers are turning to usage-based insurance (UBI) to try and save money on premiums. This involves the use of smart technology to monitor driving behaviour. Data collected from the sensors measure such things as speed, trip distance and time, location, harsh braking and cornering, and distracted driving. Safer drivers save. That being said, if you have bad habits your rates could increase.
9) Use anti-theft devices – The less attractive you make your vehicle to thieves, the better. After-market security devices such as anti-theft recovery systems are even being offered by some insurers to their clients for free because it can assist in vehicle recovery.
10) Go green – If you purchase an electric or hybrid vehicle, an increasing amount of insures are willing to offer rate reductions.
11) Private parking – Insurers like less risk. If you live in a city and don’t have to park on the street or alley because you use a driveway or garage, that can help you save.
12) Low mileage – The less you drive, the less likely you’ll be to get into an accident. Always be honest with your insurer regarding the amount you drive. If you travel as little as 10,000 kilometres a year that may help you secure a better rate.
13) Senior insurance discount – As you enter your 70s and 80s, senior drivers may find their premiums are increasing. But there are some ways to save: if you belong to a retiree or professional association, have your broker shop the market, reduce the amount you drive to qualify for a low-mileage discount, enrol in a telematics program and being claims-free.
14) Have good grades – If you’re a full-time student between the ages of 16 and 25 and you maintain good grades, some insurers will reward you with a discount for your hard work.
15) Out-of-town students – If your child is away at college or university studying you can save on the coverage for that child on your policy.
16) Loyal customer – If you are a long-time client without an at-fault accident, many insurers offer better rates for your continued business.
17) Buy a new vehicle – When you purchase a vehicle that is less than 3 years old it could help you pay less depending on the model you buy.
18) Skip unnecessary coverage – Don’t over insure. Coverage you don’t need adds to premiums.
19) ICBC discounts – If you live in British Columbia where the government administers auto insurance, there are numerous ways to save, include low kilometres, being an experienced driver and more. Find out details here.
One of the best way to save on your auto insurance is to maintain a good driving record. When it comes time to renew, doublecheck with your broker if you are taking advantage of all the discounts. Don’t leave money on the table!