Lowering your car insurance premium isn’t nearly as complicated as you may think. Whether you’re looking for the best car insurance rates in Canada or just some simple cheap car insurance, there are always ways to save.
Although it may seem like the most obvious option at first, it is often overlooked by a great majority of drivers even today. Simply being a good driver will save you loads on your premium in the long run. Taking extra care to avoid any unnecessary violations, and being mindful of speed limits and other drivers around you will entitle you to what is known as a “good driver” discount. Almost every insurance company offers this discount to their policy holders as long as they maintain a clean driving record and avoid getting into any accidents.
In addition to this there is also a discount known as the “good student” discount which works in a somewhat similar way. Drivers who are currently enrolled in an institution of education can qualify for this discount. The insurance provider will usually have a specific grade point average (around a B average in most case) the insured will have to maintain academically (with proof) to continuously have the discount applied.
Aside from discounts, there are also a few things you can do with your premium itself to rake in some great savings.
Deductibles are one of the biggest factors in determining the overall cost of your premium. Usually, the lower your deductible the higher your insurance policy will be, and vice versa. Now deductibles are something that should be adjusted with a few factors in mind. First off, consider the value of the vehicle you are driving. If your vehicle isn’t worth more than a few grand than it might make sense to go for higher deductibles, but if you’re driving a pricey brand new car than it’s much wiser to keep your deductibles as low as possible since the car itself is much more valuable. Moreover, you should also consider your personal driving ability as well; if you consider yourself to be a safe and proficient driver then you may want to try going for a mix of high and low deductibles in respect to the value of your car of course.
The last little tip for lowering your insurance premium is to remove collision coverage from your policy. Wait, what will happen if there’s damage to my car? Glad you asked. The significance of collision coverage can be explained most simply in the following way. If you’re driving an older car that’s practically worth peanuts then collision coverage is essentially an unnecessary expense since it’ll cost more than the actual value of your car, but if you’re driving a fancy new Mercedes well then collision coverage is certainly in your favor.