Many drivers view auto insurance Ontario as a necessary evil with which they must live. However, you will not think insurance is such an evil thing if you one day need to file a claim. The following tips will help you keep your monthly insurance premiums low while still ensuring you possess the protection from the insurance you need.
1. Comparison Shop
The price you pay for insurance will vary from provider to provider so you should shop around a bit before making a final decision. You should obtain at least three quotes before you choose an insurance provider. You can obtain these quotes by calling the company directly or checking on the company website. Before you venture out on your own, ask your family and friends how much they pay for insurance so that you possess a general idea of what to expect when you speak to a provider.
Your deductible is the amount you will have to pay before your insurer pitches in on the cost of repairs to your car. You can lower the cost you pay month to month for insurance premiums if you agree to a higher deductible. For example, agreeing to a deductible increase from $300 to $600 could reduce your monthly insurance premiums by as much as 30 percent. Increasing your deductible a bit more will effect a corresponding decrease in monthly premiums.
3. Improve Your Credit
If you currently pay for comprehensive or collision insurance on an older model car, you may want to consider dropping a portion of the protection you currently pay for. A good rule of thumb is that your car should be worth more than ten times the cost of your premiums. If this is not the case with your car and insurance premiums, you need to restructure your policy when it is time to renew.
4. Inquire About Group Plans
You can sometimes realize significant savings on your monthly auto insurance payments if you purchase a plan along with a group to which you belong. Groups who can combine their purchasing power to save on insurance premiums for their car include:
Individuals employed by the same company
- Trade organizations
- Professional groups
- Alumni groups
- Other clubs and organizations
5. Ask About Discounts
Many auto insurers extend discounts to drivers who have not experienced an accident or traffic violation for a set amount of time. The completion of a defensive driving course is another common way drivers earn discounts on their insurance premiums.
Young drivers who are away from home for college, complete a course in driver’s education, and maintain a good GPA may also be awarded a discount for their efforts. Ask any auto insurance provider you consider for a full list of the discounts they provide when you compare companies.