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Simple Ways to Save on Car Insurance

Here are six easy things you can do to lower your car insurance rates

A woman is shown in the driver's seat on a sunny day

Every car owner needs insurance. But if you’re looking to save some money, you have options—without sacrificing the coverage you need. Start by talking to your agent or broker, especially if your circumstances have changed.

Perhaps you’re working from home now and no longer need to commute five days a week. Or you’re driving an older vehicle, so you don’t need comprehensive coverage. “It’s about asking the right questions of the insurance company and taking advantage of any discounts that might be available,” says Elliott Silverstein, director of government relations (insurance) with CAA SCO.

For example, Ontario residents are eligible for a rebate if they install winter tires. “If you already have winter tires and you’re not getting the discount, that’s an easy fix,” he says.

Here are six other options to consider.

Save by driving less

If you’re putting fewer kilometres on the speedometer these days, you may be able to switch your coverage to a pleasure use car policy that will help to lower your premium.

Put coverage on hold

If you have two cars in your household and could temporarily get by with just one, you could reduce or hold any coverage you have for the second vehicle. But remember to add the car back to your insurance coverage before you start driving again, Silverstein says.

Take advantage of club affiliation discounts

If you’re a member of a union, alumni association or professional organization, you may qualify for an insurance discount. For example, CAA Members can save up to 20 per cent on CAA Auto Insurance.

Bundle your insurance

Combining your home and auto insurance could provide additional savings on top of a club affiliation discount.

Increase your deductible

Increasing your deductible can reduce your premium, but it should be a decision you make with your agent or broker, Silverstein says. “It really depends on people’s comfort level and their lifestyle.

Pay only as you need it

If you’re a low-mileage driver, consider CAA MyPace™—Canada’s only pay-as-you-drive insurance payment program. Members pay a base rate to cover their car against theft and damage while it’s parked at home and then only pay for the distance they drive by purchasing coverage in 1,000-kilometre increments.

Get more with CAA

To learn more about how you can save on car insurance, speak with a licensed CAA Auto Insurance Agent to find out about programs such as CAA My Pace™, Forgive and Forget® or CAA Connect, call 1-833-665-8239 or visit us online to get a quote.

Image Credit: iStock.com/kate_sept2004