How To Get The Cheapest Car Insurance In Ontario
Car insurance is one of the biggest costs to owning a car, so you can save or cost yourself a lot of money depending on how you get yourself insured..
We put together a number of tips that can help you save a little more, and if you put them all together you can immediately save yourself a lot.
Step 1: Review Your Policy
The quickest and easiest way to save on your insurance is to simply review your current insurance policy along with what’s going on in your life. There are a number of ways you can you can adjust your policy to save more.
1.1 Shop Around
This is the most important tip you will read in this guide. You should always shop around for car insurance – when you first get insurance, when your policy is up for renewal, and so on. There is never a reason not to, and in just a year enough can have changed in your situation to affect your rates. In addition, some companies offer discounts to attract or retain new customers so you should always be on the lookout for such deals.
Here are some tips for shopping around:
- Check insurance comparison websites
- Search for Ontario insurance companies that offer new customer discounts
- Check with your company and see if they offer a loyalty discount to stay
- Ask your insurance broker to see if he can find/offer you better rates
There’s no guarantee that you’ll find a company that can offer you a better deal, but there’s usually a good chance that you can and it doesn’t cost you anything to check.
1.2 Change Your Policy
You can always change parts of your insurance coverage that will save you money on your payments. Here are some examples:
- Cancel Collision Coverage – not as necessary with older cars
- Increase Your Deductible – the higher the deductible the lower your premiums/rates, but this will mean you have to pay more in the event of a crash
- Minimal Coverage – only pay for what is required by Ontario law and nothing more
If you make these types of changes the benefit is that you are lowering your payments, but the drawback is you are also reducing your coverage for when you might need it. Depending on your preference, you might choose to drop or reduce some aspects while leaving the rest alone.
There are two ways that you can create insurance “bundles” to save the payments you make on each individual element.
The first is when you insure more than one car together on the same policy. So if you or your family have more than one car, you can save on the total insurance payments by having them bundled together on the same policy. The second is by combining multiple types of insurance. Most insurance companies offer savings when you bundle your car and home insurance on one policy, and some even offer additional bundling options for things like boats, jewelry, and more.
1.4 Annual vs. Monthly Payment
You can save a bit of money by paying for your insurance once per year rather than once per month. This helps the insurance company save on the administrative costs of billing you every month and a lot of the time they will pass the cost savings on to you. It means you will have to pay a larger amount all at once, but in the long run it can help you save as long as you have that money up front.
1.5 Update Your Record
Sometimes an insurance company will not automatically adjust your rates to match your up to date driving record, and will only do so when your policy needs to be renewed. This is why when you shop around other companies you can usually find a better rate – they are using your most up to date information. You can also occasionally try calling your company and bring up the following:
- Clean Record – if they haven’t updated their record of your clean driving experience
- Dropped Tickets & Accidents – after 3 years any accidents or traffic violations are dropped from your record and your rates can usually be lowered accordingly
- Better License Level – if you obtained a higher driver’s license level in Ontario’s licensing program your rates are usually lowered
This is all dependent upon you keeping a clean driving record, and even then you won’t always get a reduced rate. That’s why you should always be willing to shop around other companies and see what options are available to you.