Holiday deals can’t beat the savings you’ll get on car insurance

How to Prepare for Your Post-Debt Life(2)

You have the perfect Christmas gift in mind for your co-worker, friend or loved one. Imagine stopping at the closest drug store and walking out with that perfect gift, only to find out later that it’s $50 cheaper at another store.

With Christmas in a little over a week, deals are now everywhere. It only makes sense to shop around and compare prices, from clothing and appliances to car insurance.

That’s right.

It’s easy to find deals on car insurance. And you don’t even have to wait until the holidays to do it. All you need to do is… search and compare.

The best way to find cheaper car insurance year-round

According to a survey done by the Financial Services Commission of Ontario (FSCO), over 50 per cent of Ontario policyholders don’t shop around annually for their car insurance upon renewal, making their renewal automatic with the same company.

But what people fail to realize is that insurers often change their rates. Every three months, FSCO releases the rate changes they’ve approved. For instance, the last time FSCO announced rate changes, we saw decreases of five per cent, to increases of 12 per cent.

Your current insurance company may have given you the best rate at the time you signed up, but that doesn’t mean that they have the best rate this year. Point is, you can easily find a better price for the coverage you need simply by comparing car insurance quotes online.

Other ways to easily save on your car insurance

Comparing quotes may save you hundreds of dollars, but wait… there’s more! There are other ways you can save on your car insurance. Consider discussing the following with your insurance professional:

  • Scrapping monthly payments and paying your premium annually in one lump sum: Many companies charge a small administration fee for processing monthly payments. If you can afford to pay your premium for the year all at once, you will ultimately save on your coverage.
  • Increasing your deductible: A deductible is the amount you agree to pay out of your pocket if you are to make a claim, with your insurance usually covering the rest. While you should keep your deductible affordable, a high deductible means a lower premium. For example, if your deductible is $500, consider increasing it to $1000. This can save you a good five to 10 per cent on your rate.
  • Bundling your policies: Got home, condo, or tenant’s insurance? Use the same company that insures your car. They will likely offer you a five to 15 per cent discount on one or even both of your policies.
  • Getting a winter tire discount: In some provinces, auto insurers are required by law to offer a winter tire discount. If you change your all-season tires to winter tires when it gets cold, inform your insurance company and you can save about five per cent on your premium.

It doesn’t stop there either. Auto insurance companies usually have a list of discounts available to alumni, club members, seniors, clean record-holders and many others. All you have to do is ask. And with these new savings in your pocket, you may be able to buy yourself a Christmas present!

Related Topics

Car Insurance 101 / Insurance / Lifestyle / Personal Finance / RSM News

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