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Auto Insurance by Julie Porter 100684495

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This picture shows the different rates per area of Ontario/GTA. By living in Brampton your rates are 66% more than regular rates. Why would this be? What about Stouffville which is a bit more north but only 2.5% higher than average. Could this be the amount of drivers on the road in a local area or maybe its to push drivers to carpool more. I would suggest living a bit more North where you can easily be in danger of poor weather and increased speed limits would be a bit higher. This is something you should consider if you are deciding to buy a car in certain areas

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Tips and Tricks to saving on Car Insurance

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Tips and Tricks to saving on Car Insurance

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By: Julie Porter

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Even if you have no claims or tickets you can be subject to increased premiums just by your postal code. A typical increase was 26% and it was based on the fact that a lot of claims were made where you lived. Not only should you look for the best school to raise your children at but look for the best community of car insurance to save money!

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Tips for keeping car insurance costs low

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Pat Foran explores the options available to car owners to keep their insurance premiums low and how to cash in on potential discounts.

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Insurance costs money! When purchasing a car don't forget to include auto insurance into your budget. It can take as much as a car payment per month just to cover insurance.

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Insurance premiums are based on geography in the GTA. It comes down to stats and kinetics. Breaking down b the postal code, insurance companies base the rates on the fact of more drivers and cars in certain areas with claims vs. less driving and lower speed limits. If you live somewhere where a typically individual uses transit more then you will pay less premiums.

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What you can do to lower your car insurance rate

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Janine White from Kanetix.ca is in studio to educate us about car insurances from across the GTA and how they vary in different areas.

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This picture shows that driving costs money! Its a realization that you need insurance to drive because it could be quite costly if you get into an accident without insurance.

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Rating drivers not vehicles is interesting. Working off of driver history for premium amounts may work for some but what about the premiums for people who don't drive that much. It seems that the auto insurance industry needs some work and consideration for people who are safe drivers with no records or crashes.

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The changes are intended to "modernize" how the Insurance Corp. of B.C. calculates insurance premiums.

New drivers and serial crashers can expect to be among the one-third of B.C. drivers to feel the sting of proposed changes to auto insurance rates, as the province seeks to clean up a financial mess at ICBC.

Attorney General David Eby gave details Thursday of a plan to fix the Insurance Corp. of B.C. The government-monopoly insurer is on track to lose $1.3 billion this year because of more crashes and skyrocketing bodily injury claims costs, something Eby has called a "financial dumpster fire."

Based on today's insurance rates, about 39 per cent of drivers could get a reduction up to $50, 13 per cent between $50 and $100, and 15 per cent more than $100, the government said. Meantime, 11 per cent face increases up to $50, five per cent between $50 and $100, and 17 per cent more than $100.

But ICBC is expected to seek a rate increase before the new system comes into effect in September, 2019.

The proposed changes would move ICBC's basic insurance to a "driver-based model," where at-fault crashes are tied to drivers rather than vehicle owners. New discounts would be given for new vehicles with manufacturer-installed automatic braking systems or which are driven less than 5,000 kilometres a year.

Eby said close to 35,000 British Columbians provided feedback during consideration of the proposed changes. He believes the changes will more fairly and accurately reflect the risk each driver presents on B.C.'s roads. He said the changes will be revenue neutral.

"ICBC's current model for calculating basic insurance premiums is broken," Eby said. "The model B.C. uses to determine these premiums is more than 30 years old and it's increasingly failed to ensure that drivers are held accountable for their driving habits and risk levels through their insurance rates."

Eby said it doesn't make sense that 80 per cent of drivers have the maximum basic discount of 43 per cent when they don't all present the same risk. It means that a customer with the discount who has had three crashes in a year still gets the same basic premium as a crash-free driver.

The changes require approval of the B.C. Utilities Commission. ICBC wants a three-year transition to the new premium system to avoid a high-risk driver facing an massive jump next year.

Insurance customers would have to list all drivers who may operate their vehicle. Then ICBC would weight the experience and crash history of both the primary and non-primary drivers in calculating premiums. ICBC would consider all drivers' at-fault crashes going back a decade when determining premiums, up from the current three years.

The government says inexperienced drivers will have existing premium discounts reduced to better reflect the risk they present.

Premium increases earned by racking up penalty points, by getting traffic tickets, would increase by 20 per cent this fall and another 20 per cent in fall 2019.

And people who earn risk premiums for more serious offences, such as drunk driving and excessive speeding, will also face increases of 20 per cent this fall and another 20 per cent in fall 2019.

B.C. Liberal Leader Andrew Wilkinson called the proposed changes disappointing and said ICBC can only be fixed through a "total overhaul." He said Eby's government should look at other jurisdictions for a better idea of how to lower insurance rates.

"All the attorney general has done today is lay blame at the foot of B.C. drivers, instead of overhauling the broken system," Wilkinson said in a news release. "It's time for a complete re-work of the auto insurance framework in B.C., and the NDP is not delivering."

The B.C. NDP snapped back at Wilkinson in a news release, accusing his party of "secretly" creating the mess at ICBC. The NDP said the Liberals quietly took $1.2 billion in profits from the optional insurance side of ICBC's business since 2010, leaving it more than $1 billion in deficit.

B.C. Green party Leader Andrew Weaver said he was pleased with the proposed changes.

"These are progressive changes that will ensure that those with clean driving records will be paying less, while people who cause crashes will generally be paying more," Weaver said.

"These changes will align rates more closely with risk and the actual cost that drivers pose to the insurance system."
With files from Rob Shaw neagland@postmedia.com
twitter.com/nickeagland

Proposed changes

* Customers will be required to list all of the drivers who may operate an insured vehicle, and their experience and crash history will be taken into consideration when calculating premiums.

* ICBC will consider at-fault crashes that happened over the past 10 years when determining a customer's premium, up from the current three years.

* ICBC will forgive one accident claim for customers who have 20 years of driving experience and no at-fault crashes in the previous decade. Once a claim is forgiven, it will take another decade of crash-free driving to earned another credit, up from the current three years.

Experience

* Up to 40 years of driving experience will be weighed toward additional basic insurance discounts, up from the current nine years of crash-free driving.

* The maximum experience credit available to new B.C. residents will be increased to 15 years, up from eight.

* New residents driving in B.C., whom the government says represent a higher risk, will see that reflected in new resident premiums during their first three years of driving here.

* Inexperienced drivers will continue to have access to premium discounts, but they will be reduced to better reflect the driving risk they present.

Vehicle

* Data about where a vehicle is driven, which are used to calculate premiums, will be updated for the first time in a decade. They will reflect changes in traffic density, population size and urban infrastructure.

Discounts

* A 25 per cent discount for qualifying people with disabilities remains, along with a discount for eligible seniors.

* A new 10 per cent discount for vehicles that have original, manufacturer-installed, automatic emergency braking technology.

* A new 10 per cent discount for vehicles driven less than 5,000 kilometres in a year.

Add-ons

* Unlisted driver protection would be available starting at $50, to cover situations where a driver needs to lend a vehicle to someone not listed, such as a friend who needs a truck to move.

* If a learner in ICBC's graduated licensing program will be using a vehicle, a premium ranging between $130 and $230 a year will be added based on where the driver lives. The learner stage will not count toward driver experience.

Customers affected

* The proposed changes will apply to policies that are not part of a fleet, including vehicles for personal, business and artisan use.

* Fleet customers (five or more vehicles) will only be affected by the changes to territory and rate class, and are eligible for the braking-technology and low-kilometre discounts.

PROPOSED RATE STRUCTURE - BY THE NUMBERS
Based on today's rates, in the first year of this transition, an estimated 67% of customers would see basic insurance premiums that reflect a lower risk:
* 39% of all drivers - up to $50 reduction

* 13% of all drivers - between $50 and $100 reduction

* 15% of all drivers - more than $100 reduction
Based on today's rates, in the first year, an estimated 33% of customers would see basic insurance premiums that reflect a higher risk:
* 11% of all drivers - up to $50 increase

* 5% of all drivers - between $50 and $100 increase

* 17% of all drivers - more than $100 increase
Source: B.C. Government

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New and risky drivers will pay more under new ICBC model

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New drivers and serial crashers can expect to be among the one-third of B.C. drivers to feel the sting of proposed changes to auto insurance rates, as the province seeks to clean up a financial mess at ICBC. Attorney General David Eby gave details Thursday of a plan to fix the Insurance Corp.

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Are we being judged before we even apply? They say a male under 25 has the highest rate. This is good advice to stay under your parents policy as a casual driver until after 25 if you want to save money. You have no choice but to purchase insurance so it comes down to almost a rip off. You're already rejudged.

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Nick Dasko bought his first car when he was 22 - a seven-year-old Mazda Protege that cost him $10,000. Then came the insurance bill: more than $6,000, even though he had no tickets or at-fault accidents.

Some of his friends were paying even more - $10,000 was not unheard of.

Ontario has the highest auto insurance rates in Canada, with the average annual premium at $1,544.86 in 2012- 45 per cent more than in Alberta, the second-most costly. For young men like Dasko in the 16-to-24 age group, the hit is the worst - classified by the industry as high risk, they are charged stratospheric rates.

Auto insurance is the wild west of compulsory services. If you want to drive, you have no choice but to buy it - but what you pay varies wildly. According to quotes obtained Tuesday from kanetix.ca, a 20-year-old male in Winnipeg with a clean driving record would pay $1,396 driving a 2008 Honda Civic DX two-door coupe for pleasure (not to commute to school or work) and compiling 15,000 km/year. In Calgary, that same driver would pay between $2,973 and $3,789. In Toronto, the bill would range from $4,239 to $9,270 - an increase of 664 per cent.

The obvious question - why?

While it costs more to cover claims in Ontario (the province is plagued by insurance fraud) private insurers claim that the actuarial evidence used to rate drivers shows that males under 25 have the worst statistical record as a group. Consequently, individuals in the 16-to-24 group pay more, even if they've never been involved in an accident or received a ticket for a traffic violation. Essentially, young men are deemed guilty until proven innocent - at age 25.

"You are being prejudged," says Dasko. "It's the last legal form of discrimination."

Public auto insurance programs, such as those in Manitoba and Saskatchewan, take a different approach. Standard rates apply to every driver, regardless of age or gender. Auto insurance is much less expensive for a 20-year-old full-time student in Winnipeg driving the same car as his counterparts in Toronto, Montreal and Calgary.

The private insurance industry defends the actuarial approach. "It's not discriminatory," says Pete Karageorgos, manager of consumer and industry relations for the Insurance Bureau of Canada. "It's based purely on statistical analysis. It's like charging more for house insurance in a high-risk neighbourhood. I think people have accepted this. In a public auto insurance system, young drivers are subsidized. In Ontario, young drivers pay rates that reflect their actual risk."

Statistics show that young drivers do cause a disproportionate amount of damage. Drivers aged 16 to 24 represent 13 per cent of the driving population, but account for 24 per cent of fatalities and 26 per cent of serious injuries. The question is whether Ontario's steep insurance charges for young drivers accurately reflect actuarial data.

State Farm Insurance spokesman John Bordignon says Toronto is a "special case": "It's got the highest population density, the worst roads, and a high rate of theft. The costs reflect those risks."

Contrary to the public system, in Ontario, Alberta and other provinces, every driver must help bear layers of extra costs. Ontario's industry is made up of more than 100 private companies that are overseen by a government agency called the Financial Services Commission of Ontario. Revenue comes from two sources - insurance premiums, and the money insurers make by investing the money consumers give them.

Private insurers say that their system has the built-in advantage of competition: "If you're not satisfied with your insurer, you can go shop around," says Karageorgos. "With government insurance, there's no choice. Private insurance gives you better service."

Not everyone agrees. The Consumers Association of Canada (CAC) deems private auto insurance to be one of the biggest rip-offs that Canadians face. After studying the industry for years, CAC concluded that a properly run public insurance system was the best choice, but found itself locked into a debilitating public relations battle with the private industry.

"There are some things that should be run by private industry," says CAC president Bruce Cran. "And there are others that should be in the hands of government. Auto insurance is one of them."

Cran says that excessive insurance charges affect everyone, not just drivers: "The costs run through the entire economy," he says. "Everything you buy, every last piece of bread you eat, is carried in a vehicle that has to be insured. So we all pay, whether we have a car or not."

The CAC's investigation of the insurance industry yielded interesting insights into the way it operates, and why costs are so high. In 2004, for example, CAC learned that private insurers had paid $290-million in secret commissions to insurance brokers who steered business their way. This practice had a direct impact on consumers - instead of hunting for the best price for their customers, brokers sold the policy that offered them the highest commission.

A public auto insurance system can offer fundamental business advantages. Most important, a public system reduces overhead costs - instead of multiple companies, each with its own head office, computer systems, etc., there is just one, which cuts duplication and creates efficiencies of scale.

Other significant savings include profit margin (public insurance systems don't have to pay dividends to shareholders) and advertising - public systems don't have to budget for TV spots and a talking gecko. Public insurance plans can also control costs more effectively - body shops, medical clinics and towing companies must comply with rates set by the public plan, which wields monopoly power over suppliers. Ontario's private insurers, on the other hand, face ongoing problems with gouging and fraud.

As with U.S. health care, the debate over private and public auto insurance has been cast along ideological lines that obscure underlying economic realities. Ontario's private insurance firms admit that rates here are the highest, yet insist that theirs is the superior business model.
CROSS-CANADA PREMIUM QUOTES
Using the website kanetix.ca on Tuesday, we obtained quotes for a 20-year-old full-time male student, in the 16-to-24 age group. We listed him as principal driver, clean record, living at home, using a 2008 Honda Civic DX two-door coupe for pleasure (not to commute to school or work) and compiling 15,000 km/year. Deductible was $500 for collision and comprehensive, with $1-million liability. The site harvests quotes from different companies, but those companies do not necessarily quote for all cities; the Canadian Automobile Association does not sell service in Montreal. The Manitoba rate was obtained directly from a dedicated website. *Kanetix provides a "lowest rate" but does not identify it until the consumer calls for a quote.
If you have questions about driving or car maintenance, please contact our experts at globedrive@globeandmail.com.
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Why Ontario drivers pay the highest car insurance rates in the country

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Nick Dasko bought his first car when he was 22 - a seven-year-old Mazda Protege that cost him $10,000. Then came the insurance bill: more than $6,000, even though he had no tickets or at-fault accidents. Some of his friends were paying even more - $10,000 was not unheard of.

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Join an association. By joining a professional association or with the help of unions and employers you could obtain discounted rates. The best method and practice would be to shop around and ask questions. Brokers are a great way to start because they can do the research for you to find the best possible and affortable insurance premium.

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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.

1.3 Bundle

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.

Step 2: Look For Technology & Discounts

As technology advances, the insurance industry allows for customers to get discounts on their car insurance if they meet certain conditions. The discount might have its own cost if you have to buy into a technology to be eligible, but it might also save you more in the long run.

2.1 Winter Tires

As of January 1st 2016, the Ontario government passed a law mandating that insurance companies give drivers a discount on their insurance if they buy and install winter tires on their cars for the winter months. The discount is usually around 5% of your collision coverage, or $72 per vehicle per year, but you will not necessarily get this discount immediately. Some companies make you wait until your policy renews, so make sure you call your insurer to find out how they handle it.

2.2 Anti-Theft Device

If you have an anti-theft device installed on your car, it helps reduce the risk of your car being stolen and so most insurance companies will lower your rates accordingly. Some of the more common anti-theft devices include:

Engine Immobilizer - automatically prevents the engine from running when it detects the owner's key is not being used to start it

Car Alarm - sounds a loud alarm when it detects an attempted theft

Steering Wheel Locks - prevents the steering wheel from being used properly

Some types of devices are better at preventing theft than others, and so they will provide better insurance discounts. You will need to provide proof of installation of the approved device to the insurance company to get a discount.

2.3 Dashboard Cameras

Dashboard camera, or "dashcams", is a new technology that is becoming increasingly popular. The appeal is that if there is a dispute of who is at fault in an accident with no other witness, or the other party flees the scene, you have objective proof to fall back on. There is no mainstream or common discount from most insurance companies, at least not yet. There are some ways they can help lower your rates indirectly, however:

Because it is a newer technology, make sure you call your insurance company - or call other companies - to find out what policies they have in place. By the time you read this there might be discounts or lower rates available to for dashcam users.

2.4 Usage-Based Insurance

Usage-based insurance (UBI) is another new technology that is also becoming more popular where you pay your insurance based on when and how you drive. You install the necessary tracking device on your car and it, along with a GPS, monitors your driving behaviour. The data is examined when your policy is up for renewal, and usually looks at the following:

Not all insurance companies offer UBI in Ontario, so ask around to see who does if you are interested. You don't have to worry about your rates going up, as companies can only lower your rates if they find that you are a lower risk due to your driving habits.

Did You Know? Car theft affects the collective insurance costs of Canadian drivers, and that is why high-theft cars cost more to insure. 8 of the top 10 most stolen cars in Canada in 2015 were all SUVs, and the other 2 were pick-up trucks.

Step 3: Check Your Memberships & Affiliations

If you have certain memberships or affiliations with eligible organizations, you can either get a discount or get better quotes if you get your insurance through them.

3.1 Professional Associations

Some professional associations have benefits for their members including savings on car insurance. They usually have a partnership in place with a specific insurance provider, and sometimes include additional benefits like priority customer service. Some of the major professional associations who have such partnerships include:

Canadian Nurses Association

Professional Engineers Ontario

Chartered Professional Accountants Ontario

Ontario Bar Association

Make sure you talk to your association to find out just how cheap they can get insurance for you, and always shop around. You might still be able to get cheaper insurance and better discounts through other means.

3.2 Employers & Unions

Some employers will offer their employees savings or discounts to employees on their car insurance if you go through them, similar to professional associations and their members. The same tips apply for this as with associations: ask the organization how the insurance benefits work, and make sure to still shop around in case you can find a better deal elsewhere.

3.3 Alumni & Students

Many universities and colleges have partnerships with a major insurance company to provide cheaper car insurance to current students as well as alumni. They will usually offer other discounts if you bundle with home insurance, as well as priority customer service if you are contacting them for information or to make a claim. Call your school's representative to find out what benefits you can get, and as always make sure you still compare their quotes in case you can save more money elsewhere.

3.4 Canadian Automobile Association

The Canadian Automobile Association (CAA) is a non-profit organization in Canada that provides a number of benefits to members, such as roadside assistance and travel services. CAA also provides car insurance, and offers its members additional savings as a benefit. It is a paid membership, and car insurance is an extra service that you would have to sign up for so make sure you still shop around.

Step 4: Plan Around Life Changes

There are a number of ways you can change your own life that will help lower your insurance payments. Most often they might just happen on their own accord and not because you wanted to get cheaper insurance, but if they happen you can take advantage of them.

4.1 Change Vehicles

What vehicle you have is one of the major factors in how much your insurance rates will be. So when you are thinking of changing vehicles and buying something different, keep the following in mind:

Many of the reasons why some cars are cheaper to insure than others is because for various reasons they are cheaper to repair or replace if they are stolen or damaged in an accident.

4.2 New home/parking

Where you live is one of the major factors in the cost of car insurance, so if you move to a new home that could impact your insurance rates - for better or for worse. Here are some factors to consider:

Neighbourhood - living in an area with higher or lower car theft rates

Parking - Secure, indoor and locked parking helps reduce the risk of theft

City vs. Country - there are more accidents living in Toronto or Mississauga than in smaller towns

When you move to a new home, make sure you call up your insurance provider and let them know about these circumstances so they can pass on any savings to you.

4.3 Different usage

If something happens in your life that changes how much you use your car it also impacts your insurance. This is because the less you drive your car the lower your insurance will be, so here are some common changes to consider:

The reasons do not have to be centered on your work, but cars are mostly used for daily commutes so it has the largest potential impact on your usage. If you realize that for any reason you have started using your car less, report it to your insurance company and they are likely to reduce your rates.

4.4 Safe driving courses

This is more useful for new drivers who do not have much driving experience in the province. You can take certified driving courses that will help prove to the insurance companies that you are capable of driving in a safe manner and they will usually give you a discount.

Summary

If you want to save more money on your car insurance, there are a lot of potential ways for you to do so. They all center on reviewing your life, making some changes to your driving habits, and looking into potential discounts you can get. Most importantly of all, always remember to shop around and see your options because you can almost always find cheaper rates somewhere else. Good luck!

You might also be interested in these guides:

Guide to Car Insurance in Ontario
What to Do If You Are in a Car Accident
How to Get Financing with Bad or No Credit

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How to Get the Cheapest Car Insurance in Ontario | The Canada Car Buying Guide

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Car insurance is one of the biggest regular costs of owning a car. You can save or cost yourself a lot of money depending on how your is insurance policy is set up. Use our comprehensive guide to reducing your insurance payments using several tips that can add up to big savings.

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Some ways to save money on auto insurance is to do your research. Using the internet to provide quotes or using a broker will help find you the best rates. Another way to lower your premium is to take drivers ed courses and increasing your deductible. By increasing your deductible it will offer an incentive to your insurance company that you are not a person to take a claim so easily. Installing winter tires will also provide a discount.

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Canadians pay too much for auto insurance. To help rectify this issue we've compiled a list of 40 ways drivers can reduce the cost of their premiums. Not all recommendations will be applicable to all drivers, but there is something here that will help almost any motorist pay less. Read on to learn how you can save on your auto insurance policy.

1. Get online quotes to find the cheapest rates

Getting quotes online is the fastest and easiest way to save on auto insurance. It allows you to pull in premiums from multiple insurance providers and see who is offering the best deal. Once you've compared auto insurance quotes you can either sign up for the cheapest policy or use the offer as leverage in negotiating a new deal with your current provider.

You can obtain quotes over the phone, but doing it online is much more efficient. The process varies among forms, but in most cases, you'll be asked to provide a bit of information about yourself, your driving history and your vehicle. The process usually only takes 2-5 minutes.

2. Use a broker to compare auto insurance quotes from multiple insurers

You can get online auto insurance quotes from two sources. The first is an insurance provider's website. The second, more efficient way to find cheap auto insurance, is to use an online broker.

Brokers aggregate quotes from several insurance companies, so you get three or five or ten rather than just one at a time. Insurance Hunter, for example, gives you 10 auto insurance quotes in just a couple of minutes.

3. Bundle your insurance policies together

Different insurance companies offer different types of discounts, but bundling is pretty much universal. If you take out two or more policies with the same company, you'll save money. It's the concept of buying in bulk; the insurance company gets more business, and rewards you with a lower rate.

The most commonly bundled policies are home and auto, but other policies, like condo, life, commercial, etc., may qualify as well. Usually, bundling will save you about 10% on each policy, making it an ideal way to maximize overall savings.

4. Take advantage of a multiple vehicle discount

For the same reason insurance companies give discounts for bundling, they also give discounts for insuring more than one car. While a discount can be earned for insuring two cars that you personally own, it can also be earned by insuring two cars that are owned by different members of the same household.

If, for example, you and your partner, or you and your child both insure your vehicles with the same insurance company, both of you will get a discount. The value of the discount is usually similar to bundling, somewhere near 10%. If you insure three or more vehicles with the same company, the value of the discount can scale upward.

5. Increase your auto insurance deductible

A deductible is the amount a driver must pay when making a claim. If repairs to a vehicle cost $1,000 and your policy carries a $500 deductible, you'll be on the hook for half the bill. If your deductible is $250, the insurance company will pay $750 and you'll pay the remainder.

But while a low deductible means paying less in the event of a claim, it also means higher monthly premiums. As a general rule, the higher the deductible, the lower the premium. If you're looking to shave off cost from your monthly expenses, upping your deductible is an effective way to do it.

6. Pay your premiums annually, not monthly

Most people pay their auto insurance premiums every month. However, many insurance companies offer a discount if you pay annually because it ensures you won't miss payments or cancel the policy partway through the year.

Paying for a full year upfront can be a shock to your finances, which is in part why a lot of people choose monthly installments. The other reason is that it's not common knowledge that annual payments net drivers a discount. If you have the funds to absorb a large one-time withdrawal, it'll save you about 5-10% of the annual cost of your policy. It will also help you avoid late fees for when a payment slips your mind. Speaking of which...

7. Avoid late fees by paying your premiums on time

One way to save on auto insurance is to avoid additional fees. That means paying your premiums on time. Missing payments can eventually result in the cancellation of your policy, but will at least cost you a little extra in interest.

A good way to avoid this additional fee is to automate your payments. Set up a monthly payment through your bank so you don't have to worry about remembering.

8. Get a car insurance app

Many insurance companies offer mobile apps. Some features are for convenience (like filing a claim), but many apps also help reduce your monthly premiums.

These apps monitor the movement of your phone while you drive to determine key habits, like acceleration, braking and time on the road. Based on the results of your driving, your insurance company may offer you a discount of up to 25%. Just signing up for the app is usually incentivized with a small discount in the range of 5%. If you're worried that your driving habits aren't the type to earn you a discount, don't sweat it. The apps never make your premiums go up.

9. Take a driver's education course

A driver's education or defensive driving course is a great way for young drivers to learn the rules of the road. It also happens to be a great way for all drivers to save on auto insurance. Auto insurers like to mitigate risk, and if you've taken a class they'll regard you as a safer driver, and thus offer you a discount. Typically, this discount will be between 5-10%.

If you missed the boat by not taking a class ahead of your G licence test, it's not too late. Regardless of age, you can enroll in a class and earn a discount. At 10% savings, it won't take very long before your recoup the cost of the class.

10. Carpool if you have a long commute

Your daily commute has a large impact on the cost of your auto insurance policy. If you're putting in an hour and a half each way, everyday, you are more likely to have a collision than someone who works from home.

One way to cut out the commute (for your car, not for you, unfortunately) is to carpool. Once your reduced daily driving responsibilities are reflected by a decrease in your total annual kilometres, you may become eligible for a discount.

11. Take stock of your life

Not in a "get yourself together way," though. More like, see if any changes you've made get you a discount on auto insurance. Moving to a new postal code could get you a discount. Getting married or having a child could get you a discount. Hitting a new age bracket could get you a discount.

If something major changes in your life, check your broker's website to see if you're eligible for a discount.

12. Find a safe place to park your vehicle

If you park on the street, you're vehicle is more vulnerable to damage and theft than if you park in a private garage. Some insurance companies account for this difference and offer a discount to car owners with a safe place to store their ride.

However, this discount is not offered by all companies, nor is it very significant. Typically, drivers wind up saving between $30-$50 annually.

13. Cash in on safe driving

Driving safely isn't the most exciting or immediate way to save on car insurance, but there's nothing better for long-term results. Driving safely will help you qualify for a no claims discount and avoid paying deductibles.It's difficult to assign a monetary value to a good driving record. Over the course of a lifetime it can be tens of thousands of dollars.

14. Install winter tires on your vehicle

In Ontario, insurance companies are legally obligated to offer a discount to drivers that put winter tires on their vehicle in the winter. While some companies follow the spirit of the law by offering up to 10% off, others follow only the letter, offering a measly 1%. Insurers may offer discounts to residents of other provinces, but do so at their own discretion.

In Quebec, winter tires are mandatory from December 15 to March 15, while in British Columbia, winter tires are mandatory for certain regions and roads. In places where they're required, winter tires won't get you a discount because it's assumed everyone has them.

15. Avoid making a claim when it doesn't benefit you

It's the official policy of any insurance company that all damage to your vehicle should be reported. However, you should carefully consider whether or not filing a claim is your best option. If your deductible is higher than the cost of repairs, you'll receive no aid from your insurer, but the report will cause your premiums to go up.

Significant damage to your vehicle is almost always worth reporting, but a fender-bender that costs a few hundred bucks may be better taken care of without involving your insurance provider.

16. Check to see if you're eligible for group auto insurance

Group insurance is when an association (like a company, alumni or union) strikes a deal to get a discount for its members. This way the insurer gets more business and the group members all pay less. It's the same general concept as bundling your home and auto policies, but sees several people bundle their auto policies together.

To see whether you're part of a group that gets a discount, check with your broker. Many insurance provider websites also display lists of the groups they work with.

17. Be loyal...when loyalty is valued

It's not wise to be blindly loyal to your insurance company, but some companies will make loyalty worth your while by offering a discount. It's fairly common that after one, three, five and ten years, you'll be eligible for a loyalty discount.

Loyalty discounts are typically small, something like 5%, but can scale up over time. Be aware that these discounts are not universally offered, and that the number of years required, as well as the size of the discount, varies between companies.

18. Get a credit card that covers rentals

Many credit cards provide collision insurance for rented vehicles. This is especially true of travel rewards cards. If you routinely rent cars for travel or business, this perk offers plenty of value.

But remember that not all cards provide the same level of collision insurance. Go online to see how much coverage is provided by your credit card so you won't be in for a rude awakening when it's time to call in a claim.

19. Consider insurance before buying a new car, not after

This isn't a discount per se, but if you're in the market for a new (or used) vehicle it's helpful to factor the cost of insurance into the total cost of the car. Based on safety ratings, features and cost, some models are more expensive to insure than others.

A good way to compare prospective vehicles is to get quotes using your personal driver profile, and switching between models. This way you can see approximately how much you'll save by selecting option A over option B.

20. Be discerning when lending out your vehicle

Being generous by lending your car to friends and family is admirable, but giving your keys to the wrong driver can have undesirable consequences. Remember that claims are attached to the vehicle, not the driver.

So while lending your car to someone might not feel like a big thing, make sure you're confident that they'll return it without incident. Even a small accident can inflate your premiums for years to come.

21. Separate fact from fiction

Knowing how to save is important, but you don't want to make any decisions based on misinformation. There are a lot of myths about what affects auto insurance premiums. For instance, do you think a red cad will have higher premiums than a gray one? It doesn't. Do you think you'll get a big discount for turning 25? Not necessarily.

When looking for an insurance policy, knowledge is power. Find out which factors actually matter (hey look, this list might be a good place to start!), and which are just hearsay.

22. Don't auto-renew...unless you get a discount for it

Because insurance isn't usually associated with a good time, many people just let their policies auto-renew each year. While this is convenient, it's financially irresponsible. Auto-renewing prevents you from comparing quotes and finding the best option on the market, which only takes a few minutes.

There are only two acceptable reasons to auto-renew. Either you've checked around and determined you have the best deal you can find, or your provider incentivizes you with a discount. Even if the latter is true, it doesn't hurt to first get some quotes and confirm that the discount is more valuable than an alternative rate.

23. Get a policy with ticket forgiveness

This perk can be immensely helpful if you receive a ticket for a traffic violation. Tickets affect your auto insurance premiums for three years, which means ticket forgiveness acts as a three-year discount every time you're receive a citation.

The savings depend on the severity of your violation. A case study we conducted last year shows that a driver who incurs a minor speeding violation will save approximately $400 over three years with ticket forgiveness. If the violation is more severe, or multiple tickets are handed out, the savings are even higher.

24. Get a policy with accident forgiveness

Accident forgiveness is similar to ticket forgiveness in that it's essentially a mulligan. Typically, filing a claim will cause your premiums to rise, but accident forgiveness gives you a freebee. Because accidents stay on your driving record longer than tickets (six years), the savings stretch out even farther.

What's more is that at-fault accidents are murder on your premiums. Using Insurance Hunter's own auto insurance quote tool, we created two driver profiles that were identical except one had a recent at-fault accident. The different in price was $98 per month. This means that over the course of three years, accident forgiveness can save you over $3,500.

25. See if you're eligible for a low mileage discount

Less time on the road means less risk to your car, so your insurance company may be willing to offer you a discount. The definition of "low mileage" isn't consistent among insurers, but if you're at 20,000 km or under it's worth looking into.

26. Ensure your primary and secondary driver statuses are correct

If there are multiple drivers registered to the same vehicle, make sure the insurance is parcelled out properly. It's important to be honest; deceptively claiming a more experienced driver is the primary user can lead to a denied claim. But it's also important to make sure you aren't costing yourself money by wrongly identifying a higher risk driver as the primary operator.

27. If you're an older driver, get a retiree discount

Retired drivers are often rewarded with discounts in the 5-10% range. Not all insurance providers offer this discount, but many do. If you've retired since last talking with your broker, give them an update. It could help you save a few bucks every month.

Note that there is sometimes a condition that you must be retired and a certain age, usually about 55. But hey, if you've managed to retire before 55 you probably aren't desperate to save a few bucks on auto insurance. Also, congratulations.

28. If you're a younger driver, graduate your licence

A lot of young drivers race to graduate from a G1 to a G2 licence because it grants them far more independence. While the difference between the G2 and G licence is less extreme, the upgrade does give additional freedom to drivers, as well as an auto insurance discount.

Owning a car before you get a G licence isn't common, but it's not unheard of. If you're in that situation and need a little extra motivation to move up to the G, know that you'll save some money each month on your premiums.

29. Don't pay full price for a summer car

Even if you take your car off the road it's a good idea to keep it insured. In theory, it could still be damaged or stolen, so having some protection remains important. However, a parked and stored car isn't likely to cause injury to other drivers, so taking liability off of it won't cause harm.

If you have a vehicle you use for only part of the year - for example, a sports car you keep in the garage all winter - make sure you're paying only for what you need. In most cases, that means basic damage and theft. All other forms of protection can be re-added when you take it back on the road.

30. Lighten vehicle usage...even if it doesn't get you a low mileage discount

If you can find a way to reduce the kilometres on your car, it may net you some savings on auto insurance. Less time on the road means less risk of a collision, which means you are less likely to file a claim. This translates to lower premiums and a reduced probability that a claim is filed. Driving less also means less stress on your vehicle, which can reduce mechanical costs, as well as the cost of gas.

31. Get a new postal code

It's not always fair, but your premiums are affected by the neighbourhood you inhabit. Statistics like crime rates and accident frequency influence the amount you pay for car insurance.

We know it's not practical advice for everyone to up and move in an effort to save on car insurance, but the difference can be substantial enough that, in certain situations, it's not as far-fetched as you might guess. For example, if you rent an apartment in a big city like Toronto, you could save hundreds of dollars by moving five minutes away. This example is an outlier, but if your living options are plentiful and you aren't tethered down, it may be worth your consideration. At the very least, Google search nearby neighbourhoods to see how much you could save.

32. Make sure you aren't over covered

One of the most important things about insurance is understadning what you need and what you don't. While it's crucial to make sure you protect yourself wherever possible, it's also important not to throw money away. If you rent a car, check to see if your credit card covers the damage insurance. If it does, there's no need to shell out your own money to buy the coverage. If you have a car that's just sitting in the garage, you may want to insure it against theft, but the likelihood of a collision is pretty small, so you can pass on the collision insurance.

33. Your credit score matters...in some places

In some provinces (Ontario and Newfoundland and Labrador), there are regulations in place to stop insurance companies from accessing their clients' credit scores. Elsewhere, insurance companies can access credit scores at their leisure, and in other provinces, companies need your expressed consent to access it.

In provinces where insurers don't have free access to your credit score but can legally ask for it, you may be eligible for a discount if you agree to share the information. Excellent credit scores can net you a small discount, while refusal will render you ineligible for any discount at all.

34. Find a circumstantial discount applicable to you

Different insurance providers offer a handful of lesser known discount options to attract certain demographics. For example, you may come across a discount for students who live more than 50 km away from their parents, while other companies may provide discounts to farmers, veterans or retired people. Check with your broker to see if you meet any criteria.

35. Go with an electric car

Hybrids and electric cars are becoming more popular. In fact, numerous countries are planning to ban the sale of new gas and diesel vehicles over the course of the next couple of decades.

Getting a more environmentally friendly car is rewarding in and of itself some many motorists, but if you like your rewards to be more tangible, be aware that eco-friendly cars can earn you a discount with some insurance companies. You should also note, however, that electric vehicles tend to be more expensive than gas vehicles, and are therefore more costly to replace and repair. So unless the you're comparing vehicles of similar prices, the electric model will probably be more expensive to insure, and that may even be the case after a discount is applied.

36. Earn a tiny amount of your child's tuition back with an auto insurance discount

If your child is a secondary driver on your policy you can earn a discount when they move to a different city or province to attend post-secondary school. The logic here is that they won't use your vehicle as much as they did while they were living at home. Or maybe insurers are just taking pity on you because of the current cost of tuition. Either way, this discount isn't available if they're taking the car with them.

The value of this discount can reach up to 50% of the cost of having your child as a secondary driver on your policy.

37. If you get a speeding ticket, fight it

A speeding ticket costs much more than the amount of the ticket itself because it impacts your premiums for 36 months. By fighting a ticket you can delay its inclusion into your record. This can be helpful if you already have a citation, especially if you have ticket forgiveness as part of your insurance policy. In such cases, drawing out the period before the ticket is added to your record could mean that you never have more than a single ticket at one time, and therefore never pay increased premiums. If you don't have ticket forgiveness, you can still avoid the punative cost of having multiple tickets on your record at the same time.

38. Get anti-theft features for your vehicle

Owning a vehicle with anti-theft features can earn you up to 5% off your premiums, depending on your insurance provider. Engine immobilizers, wheel locking devices and automatic alarms are some examples of features that can earn you a discount. If 5% doesn't seem like a lot, well, anti-theft features can also prevent your car from being stolen.

39. Get a car with safety features

At one point, features like airbags and anti-lock brakes would net drivers sizeable discounts (up to 40%). Nowadays, these features may still technically get you a discount but they're so common it's more like a penalty when you lack them. Other more modern features have slid into place to present new opportunities for drivers to save.

Features like electronic stability control, rear-cameras, blindspot alarms and automatic seatbelts and windows are among the examples of discount-worthy features. They aren't likely to add up to 40% in savings, but a couple of these modern conveniences can earn you at least 5% off your auto insurance premium, with savings potentially being much higher.

40. Ask for a discount

If you are elgibile for a discount, don't expect your insuance company to trip over itself to get you to pay less. It is incumbent upon you to inform them as to why you should be paying less. While this may seem obvious, too many people skip this step and leave money on the table.

Always, always, always see what discounts are available and what your insurer can do for you. The worst result that can come from requesting a discount is that you end up paying the same price you're paying now.

Notes on the list

1. We've tried to empahsize this throughout the list itself, but it bears reapeating: not all insurers offer every type of discount. To find out whether or not your insurance provider offers a specific discount, check their website or speak with a broker.

2. To determine the approximate value of each discount, we examined offers from a variety of insurer websites or used our own quote tool. But please keep in mind that discounts vary by insurance proivder.

3. If you're thinking, "I qualify for tons of these...I'll save so much the insurance company will end up paying me!" then check out our article on how insurance discounts stack. It provides clarity on how multiple discounts are applied.

4. Not all discounts are applicable to all drivers, and some are irreconcilable. For example, you're unlikely to get a student and retiree discount. This list is meant to be exhaustive, presenting all available options that drivers from any demographic might be able to obtain.

5. If you are uncertain whether you qualify for a discount, speak to your broker. They can shed light on the opaque elements of auto insurance and help you pay as little as possible.

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The definitive guide to auto insurance savings in 2018

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Canadians pay too much for auto insurance. To help rectify this issue we've compiled a list of 40 ways drivers can reduce the cost of their premiums. Not all recommendations will be applicable to all drivers, but there is something here that will help almost any motorist pay less.