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Friday, 4 November 2011

Top 5 Ways to Save Money on Your Car Insurance

One of the most common questions we get asked is "How can I save money on my car insurance?" It makes sense: too many people spend way too much money on car insurance when they don't have to. After reading this article, you will be equipped with the knowledge that could save you hundreds, if not thousands, of dollars on your annual car insurance premiums!

1. Shop around
When you were a kid, didn't your mom tell you to call around before going shopping to find the right price? Well, she was dead right. With insurance, as with anything, you have to know what companies are offering. Some companies give better premiums to elderly drivers, while others provide discount specials to young drivers fresh from passing their test. Call as many insurance brokers and agents as you can to see who can get you the best deal.

2. Lump together insurance plans. 
If you also have business or home insurance, see if you will get any special discount for insuring your car with them too. Be sure to compare that discount with the savings you would get from insuring with another company. You will also want to think about convenience over price -- even if it costs you more to insure with the same provider, it may make your life simpler, and sometimes that's priceless!

3. Take driver training. 
This is especially important for young drivers who have no experience. Insurance companies are most concerned with your driving history: what kind of driver are you, how many accidents have you been in, how likely is it that you will get in another accident? To show them that you have some basic knowledge of how to drive, take the basic driving training course in your province: you are likely to see a significant reduction in your premiums!

4. Buy the right car. 
The kind of car you buy has a lot to do with the insurance premiums you will pay. By and large, the more expensive the vehicle, the more money you will pay on your insurance premiums because the cost of replacement is high. If your car is rare and parts are hard to come by, you may also find yourself spending more than you had expected. Your best bet, then, if you want to save money on your premiums, is to buy a simple vehicle that does not cost much to insure. When calling different insurance companies, give them a few options of the cars you may want to drive under their policy. They can give you a quote for each and you can see for yourself how each car differs.

5. Choose a broker. 
In the insurance industry, there are two broad groups of insurance providers: insurance agents and insurance brokers. Insurance agents represent individual insurance companies while insurance brokers represent clients and find the best insurance plan on their behalf. Brokers have access to all of the insurance policies of the insurance companies, and can select the best plan for you given your budget and coverage needs. Of course, you pay a small commission for this service, but this will more than pay for itself when they find you an insurance policy far cheaper than you could have found on your own!  

1 comment:

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