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Sep 23

5 Tips for Cutting Car Insurance Costs

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Car insurance costs can add up quickly, especially on top of other monthly bills like rent and utilities. While car insurance is a necessary expense when you own a vehicle, it can often be more expensive than it needs to be. If you think you might be paying more for auto insurance than you should be, there are plenty of ways to reduce these costs so you can keep more money in your wallet.


  1. Compare Car Insurance Companies in Your Region

One of the best ways to cut costs on your auto insurance is to do your research and compare various providers. Checking out your options will allow you to make sure that you’re getting the best possible deal.

Be sure to do a thorough search of car insurance providers in your area. For example, if you’re living in Toronto or the GTA, you’ll want to search for something like “cheapest car insurance in Ontario”. You can then review the results to find the company that offers the best value and aligns with your needs.


  1. Buy Online

Many insurance companies offer a discount if you purchase your plan online instead of in person. This is because it’s typically cheaper for insurance providers to sell their policies online. They may offer a fixed amount discount (such as $50 off) or a percentage discount (such as 10% off the amount of your annual premium).


  1. Drive Safely

When you take care on the roads, you’ll rest easy knowing that you’re doing everything in your power to keep yourself and your loved ones safe in the car. Another benefit is the potential savings on car insurance.

Many car insurance companies offer special bonuses to drivers with clean records. These are usually known as “no claims bonuses” or “no claims discounts”. What’s even better is that these discounts often increase with each passing year, meaning the longer you go without a claim, the more money you can save. Be sure to exercise caution at all times, especially in the winter months when road crashes are especially common.


  1. Drive Less Often

Insurance providers calculate the rate of your insurance plan based on a number of factors. One of them is the mileage you plan to put on your vehicle. As a general rule, the more you drive, the higher the insurance costs will be.

Make an effort to drive less often to lower your rates. Rather than driving to work, consider taking public transit or biking one or two days a week. This will lower your mileage and help you cut costs.


  1. Increase Your Claims Deductible Amount

Raising your deductible can lower your premiums because it means that your insurance company is taking on less risk. If you’re comfortable assuming a bit more risk, then consider boosting your deductible amount. For example, if your deductible is sitting at $500, then maybe raise it to $1,000.


By following these simple tips, you can significantly lower your car insurance costs and save more money. With more money in your pocket, you’ll be well on your way to the financial security and freedom you deserve.


Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.


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