Insider tips on auto insurance savings by MSN.ca
Insurance is one of the significant components of the costs of running a car. Here are some simple tips that will help you reduce the cost of your automobile insurance:
1. Take control of your driving record.
You can expect lower insurance rates if you have fewer traffic accidents and take greater care when driving. Take a good look at your driving habits to see what kinds of behaviour you can eliminate, such as speeding, tailgating or running yellow lights.
2. Consider insurance costs before buying a new car.
Cars that are more attractive to thieves, more costly to repair, and more commonly involved in accidents cost more to insure. According to the information available at the Insurance Bureau of Canada, the following 2000 and 2001 car models are most likely to incur an insurance loss:
Acura Integra, 2-door
Chevrolet/GMC 2500 4WD
Dodge Durango 4WD, 4-door
Ford Escort ZX2, 2-door
Ford Mustang/GT, 2-door
Ford Ranger 4WD
Honda Civic/Si, 2-door
Honda Prelude, 2-door
Hyundai Tiburon, 2-door
Lexus RX300 4WD, 4-door
Accordingly, you can better manage costs if you purchase a vehicle that is less likely to incur an insurance loss, such as:
Acura MDX 4WD, 4-door
Buick Regal, 4-door
Chevrolet/GMC Astro/Safari Wagon 4WD
Mercedes Benz C230, 4-door
Pontiac Montana
Saturn SC, 2-door
Saturn LS, 4-door
Saturn SL, 4-door
Toyota Camry Solara SE, 2-door
Volvo S40, 4-door
3. Increase your deductible.
By choosing a higher deductible on your collision and comprehensive coverage, you agree to assume more risk for yourself — and possibly lower the price of your coverage accordingly.
4. Don’t pay for coverage you don’t need.
Eliminating certain options, such as glass replacement coverage or the comprehensive and collision coverage on a very old car, can put money back in your wallet. However, keep in mind that should certain situations arise for which you chose not to have coverage, you will, ultimately, be faced with the cost of those repairs.
5. Take advantage of discounts.
Retirees and drivers over 50 are often given discounts because they’re assuming that retirees and drivers over 50 are driving less in general than those who are working, or under 50. You might also qualify for a discount if you install an alarm or other safety devices, if you insure more than one private vehicle of your household with the same insurer or if you insure your home and car with the same company. Don’t forget to mention to your insurer if you have two occasional drivers living at home. You could pay the premium for only one, not for both.
6. Build a relationship with your insurance company.
Most companies will charge an existing client who has more than one recent claim less than they would a new client in the same situation.
7. Keep your records updated.
Make sure your insurance company always has correct and up-to-date information on file; it may be to your benefit! For instance, if you move from the downtown core of a large city to a suburban area, your rates may go down. Or even if you move to a smaller city, such as from Toronto to Simcoe, Ontario..
