The high costs involved with getting and maintaining car insurance can take up a big part of anyone’s budget. Fortunately, there are a lot of ways to save on auto insurance, whether you are a new driver, getting your first policy by yourself, or are looking to switch insurance companies.
To save money in this area of your budget, start by shopping around. Specifically, compare prices at a couple of different auto insurance companies or use an insurance comparison service like Kanetix. As you look, you’ll quickly discover that car insurance rates vary a great deal between different companies. In addition, auto insurance companies vary their rates a lot based on other factors. The age and gender of the driver can be the biggest factor in determining how much someone will pay after a review of the policy holder’s driving history. In general, males will pay more than females, and younger drivers will pay more than older ones. The driver’s credit history, the location where the car is garaged at night, and the number of miles that are driven on the vehicle every year can also determine the amount of the premium that the driver will pay.
After getting a couple of base prices for premiums based on your basic information, the best way to get even cheaper auto insurance is by looking for discounts. Discounts are incentives offered by auto insurance companies to their policy holders for either bringing them more business, or reducing the insurance company’s risk.
In addition to shopping around, you may also want to look into buying all of your insurance policies from the same company. Many auto insurance companies will offer discounts to new or existing customers who carry multiple policies for more than one car or recreational vehicles with that company. If you only have one car, ask about discounts for keeping other insurance policies such as homeowner’s, life, and renter’s with that company. A “multiple policy discount” is typically the biggest discount that is offered by most insurance companies.
While looking for auto insurance discounts, inquire if increasing the insurance deductible can save you money. In some cases, increasing a policy’s deductible can save money from the premium. This discount is the result of the insurance company not having as high of a liability with insurance policies that have a higher deductible as those with a lower deductible. If you choose to get a policy with a higher deductible, however, be sure that you have enough in savings to meet this deductible in the case of an accident.
It can also be a good idea to ask about discounts for any behaviors that can be easily changed or that you already do. Currently, many insurance companies offer discounts to policy holders who regularly wear a seatbelt, have a car alarm system installed in their vehicle, have a car with airbags, and/or are considered by their state licensing board to be a “good driver”. Some companies also offer discounts for personal behaviors. These can include having good grades, choosing not to drive at night, and not smoking or drinking.
Jill Dempsey is an insurance agent at the Kanetix car insurance comparison service in Ontario. If you believe you’re paying too much for your insurance coverage then you might want to do some comparison shopping. There are over one hundred insurance companies in Canada, and many are willing to compete for your business. Comparison services increase competition between insurers, and this provides drivers with better insurance rates. If you haven’t already, consider visiting Kanetix and doing some comparison shopping of your own.
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