Lower car insurance premiums help make a necessary product more affordable. While it’s nice to good deal, you also need to remember that cheaper isn't always better. When it comes to financial services, you get what you pay for. If you need Canadian car insurance, you'll have to pay for it. But that doesn't mean you have to overpay.
Getting a lower car insurance can save you big bucks and make sure you're protected at the same time. Some people think that you can only negotiate your car insurance rates when you purchase the policy. That’s not true. Every year upon renewal drivers can also negotiate lower car insurance rates.
Here are five easy ways to lower your annual car insurance premiums:
1. Double-check the amount of coverage you need
One of the biggest makes you can make when it comes to buying insurance is to purchase more than you need. If you're buying Canadian car insurance for the first time talk with a licensed insurance agent, tell them about the make and model of your car and let them give you advice on the amount of coverage you need.
If you're renewing your car insurance, review the policy to make sure you aren't paying for more insurance than you need.
2. Start shopping around and don't buy until you're ready
Often, drivers go to a local financial institution to buy insurance. That can be a costly mistake. The most convenient option isn't always the most cost-efficient option. You can save money by shopping around and getting quotes from different insurance companies.
3. Choose the right type of insurance policy
You may not know this, but there isn't only one type of car insurance. When buying insurance for the first time, it's common for drivers to buy the first type of insurance that's recommended by the financial institution.
Asking questions about the coverage and eliminating unnecessary clauses can save on your insurance premiums. If you don't need roadside insurance (because you have it somewhere else such as CAA), don't pay for it.
4. Increase your deductible
This is one of the easiest ways to negotiate lower car insurance rates. If you file an insurance claim, the deductible is the amount of money you pay out of pocket before the insurance company starts refunding expenses.
The more you choose to pay the less the insurance company has to pay. As a result, the higher the deductible, the lower the cost of your car insurance premiums.
5. Ask for discounts on your policy
You'll never know about the discounts available for Canadian car insurance if you don't ask. Believe it or not, insurance companies offer discounts on car insurance for everything from being a loyal client and bundling your policies to paying the full annual amount upfront, and for driving an electric car.
Some other types of discounts that are available include lower rates for high credit scores and your chosen profession. Be sure to ask about all applicable discounts before buying car insurance.