Auto insurance: 6 tips for saving on your premium

1. Drive a smaller, older or more fuel-efficient car 

Your car model is one of the most important factors in the calculation of your insurance premium. Insurers take into account, among other things, the vehicle’s tendency to be stolen, whether it is a sports car, its safety rating , etc.

Visit the Insurance Bureau of Canada (IBC) website for a list of vehicles that may cost more to insure, including: 

• Those most often stolen in Canada
• Sports models
• Vehicles with larger engines
• SUVs
• Models that are known to be less safe for their occupants 

You can also think about electric or hybrid vehicles, which are sometimes eligible for discounts on your insurance premium. 

2. Install an anti-theft device

Regardless of the type of vehicle, an insurer will usually offer you an instant discount if you install an anti-theft, tracking or starter-kill device. Having the vehicle’s main components engraved with anti-theft markings can also lower your premium.

Knowing that your vehicle keeps thieves at bay also gives you peace of mind.

Knowing that your vehicle keeps thieves at bay also means peace of mind.

3. Make sure your credit score is error-free

Credit records, however, can sometimes contain errors, which could penalize you when the insurer calculates your premium. 

Before quoting you a price for your auto and home insurance, an insurer will analyze your credit score.

To avoid this eventuality, take the time to ask for a copy of your credit record once a year. To avail yourself of this free service, contact either Equifax or TransUnion. If you find an error in your file, have it corrected as soon as possible! 

Contact Equifax:

• By phone: 1-800-465-7166
• Online credit report request form

Contact TransUnion:

• By phone: 1-800-465-7166
• Online credit report request form

To find out more, read our Tips&Tricks instalment “If your insurer wants to check your credit score, don’t panic!”

4. Negotiate and compare before buying

As with anything in life, it’s a good idea to negotiate with your insurer or broker, or shop around for insurance from several companies. Finding out what the insurance market has to offer you is the sensible thing to do.

Insurers’ programs change from year to year, just as your needs will evolve over time. Sometimes all it takes is a simple phone call to get a discounted premium, or to find an insurer offering a new policy with better benefits. 

Don’t hesitate to mention that you belong to a club, association or professional order: some insurers offer discounts to active members of recognized associations.

You could also save a lot by having both your vehicle and home coverage with the same insurer! Most of them offer substantial discounts to people who insure more property with them.

5. Customize your insurance

Evaluate which coverage options and endorsements protect you best, and ask that anything that seems superfluous be removed from your policy. The more coverage, the more your policy will cost you...

Calculate your annual kilometrage as accurately as possible. Your insurer takes this into account when setting your premium. The less you drive, the less you pay!

If you have a tolerance for risk, you can also get a lower premium by agreeing to pay a higher deductible in the event of a claim. Just be aware that if something does happen, you will have to pay more.

6. Drive safely

Drivers who are distracted by their smartphones or other factors cause accidents that drive up the number of insurance claims. When you adopt safe driving behaviours, you not only help improve the road safety record, you may also be eligible for a “good driver” discount if you have had no claims in recent years.