How to Get Car Insurance that Saves You Money

Auto insurance coverage serves many purposes but generally, it provides you and your vehicle a valuable protection in the event of a traffic accident, no matter who holds responsibility for it. In Canada, car insurance is mandatory, but while insurance coverage is usually standard within each province, insurance premiums can vary in the range of hundreds of dollars depending on each insurance company, its products, and basic marketing strategies.

Yet, there are some common tips that help drivers both, purchase the best coverage and save money. The brief guide below will suggest some tips to follow.

* Conduct your own research on several insurance companies in order to get competitive quotes for car insurance. You can shop around (either pay a visit to your local blanch or do a search over the net) and get information from a number of Canadian insurance companies.

* Most insurance companies offer lower premium payments if you purchase combined auto and home policies with them. In such cases, AXA Canada, for example, promises an additional 12-percent savings on your car and 10 percent on your property premiums. However, both policies must be in the same name and have the same address and effective/expiry date. Both policies must be on the same payment plan and be arranged by the same broker.

* You can get up to 25 percent discount if you insure all your vehicles with the same company (AXA Canada). The discount depends to a large extent on the age of the vehicles. If you insure more than one vehicle with Royal Bank of Canada, you will save up to 15 percent.

* You can increase your savings by driving a car which is identified as “Hybrid” by the vehicle manufacturer: the average discount is about 5% .

* To get a better quote, you have to drive safe and keep your driving record clean and up-to-date. Traffic tickets have extremely negative impact on your auto insurance and you must pay out for them twice: the second time is when you renew your policy. If you are fined for over $70, it is better to dispute the ticket in court. In most cases, the result is a reduced fine and a clean driver’s record. Many insurance companies react mercifully to your first accident and don’t increase your premiums if you had kept your driving record clean for the previous 6-10 years.

* If you insure an older vehicle, consider reducing the collision coverage.

* Many companies offer a low mileage discount. For example, if you are an AXA’s client and drive your vehicle less than 5,000 miles a year, you may qualify for a 10-percent discount. So, if possible, do not go to work with your car. Remember that the distance between your residence and your office also makes a difference and if you get a job that is closer to your home, or move your occupation near your office, you have to inform your insurance company that you are now driving less miles than before.