Auto insurance is not a small expense, but it is a necessary one. Most companies charge customers per person per car, so dependent on the size of your adult family and amount of vehicles – it can sure add up.
Keeping to a budget is a great way to make room for vacation savings, or ensure a necessary emergency fund. Whatever the goal, you can use certain strategies to save on your auto insurance.
How Much Savings is Enough?
A Kanetix.ca insurance survey revealed that to switch auto insurance providers, the customer would need to save $150 each year to feel confident going through the hassle of switching providers. Or, at least, that is the opinion of 56% of Canadians polled. Twenty-two percent of Canadians, on the other hand, only need a difference of $50 to convince them to make the change.
With the recent surge in insurance rates throughout the country, especially Ontario, consumers should be examining their current benefits versus other options to ensure they are still getting the best deal.
Know Your Auto Insurance Bill
Since most Canadians have an annual bill, consumers can mistakenly be overcharging themselves without knowing it. When broken down in the Kanetix.ca survey, only 57% of policy holders reported reviewing their policy, and 27% relied on their broker to handle all details.
Look over your bill and see what costs could be adjusted. If you are out of your comfort zone, consider these ideas to lower the overall amount due.
Report Yearly Changes
Whenever there is an update with you vehicle, report it to the insurance. Certain special features will lower your premium. Some premium benefits are related to safety, for instance, when new snow tires take the place of old tires, your chance of an accident goes down, and so can your premium.
Everyone’s situations change over time, and it is the small things that could make a large difference in the invoice. Changes that will save you money should be applied promptly rather than waiting for the renewal period each year.
Many auto insurance providers carry other forms of coverage; such as: home, life, or renter. If you need these additional services, you can save by combining them. This is usually called a multi-line or bundle discount. When you pay for insurance you also pay for services provided by your carrier. When you insure all of your needs through one carrier, this will be a single cost instead of several from a range of providers.
Once you have combined insurance, any circumstance that lowers one policy could, in return, affect the others positively. This way you will not need to go through the trouble of updating several servicers, and results to minimize your auto insurance bill could be from unrelated lifestyle changes, like the elimination of smoking in your home.
Many insurance companies give quotes over the internet, so shopping around is even easier than ever. By shopping online you can quickly gather quotes to compare side by side. This allows consumers to compare more options on their own schedule.
The same Kanetix.ca survey found that more than half of Canadians would rather find a policy online, than in person. If the company does not have online quotes, their prices could still be lower than average, or they could offer a great bundle, but it is harder to find details. The only way to find out is to place a short phone call.
Auto Insurance Savings
Saving on auto insurance is largely about knowing what you are paying, and what dependents make up these figures. Implement these methods to assist in market research, finding the best deal, and ultimately lowering the bill. Whether you are considering switching, or you can submit information to adjust your current premium, most people are paying more than they need to. All it takes is a little attention and careful planning to increase your savings margin.