Insurance costs often account for a big chunk of monthly budgets. We all know that you would rather be spending money elsewhere—saving for a vacation, going out for a nice dinner, buying something nice for yourself. And while insurance is necessary, it doesn’t need to break the bank. There are some easy ways to help you save on your monthly insurance costs.
- Consider your next vehicle wisely. Choosing a low-risk, safe vehicle will save you money.
- Obey the rules of the road. Driving convictions (speeding, distracted and impaired driving, etc.), at-fault accidents, and license suspensions will cause your insurance to increase.
- Adjust how frequently you use your car. If public transit is an option, consider using it to lower your annual kilometres.
- Exclude high-risk drivers from your policy. If someone in your family has received several driving convictions, consider taking them off your policy.
- Install a technology device that records your individual driving for a personalized insurance rate.
- Install an approved anti-theft system in your car. Lowering your vehicle’s risk of being stolen will help your insurance costs.
- If you have an older vehicle, consider eliminating collision coverage for it. If your car isn’t very valuable, your monthly payments and your deductible may cost more than what the insurance company will ultimately pay out if you’re in an at-fault accident.
- Get winter tires. Most insurance providers have a discount if you change your tires seasonally.
- Install an alarm and home monitoring system. If you’re home is less vulnerable to thieves, you look less risky to an insurance company.
- If you have an older home with original building materials (wiring, plumbing, etc.), consider upgrading to safer materials. Older wiring and plumbing put you at higher risk of fire and water damage. Inform your insurance provider of any home upgrades you do.
- Make sure you have the correct rebuild cost of your home. Your insurance is partially based on how much it would cost to replace your home if it was destroyed or damaged in an accident. Your home’s rebuild value is not the same as its market value. You do not want to be paying insurance for the market value of your home.
- Keep an accurate account of what you own. Over-coverage can lead to higher insurance premiums. You don’t want to be paying for something you may no longer possess.
Additional ways to save:
- Bundle your insurance policies.
- Review your policy and have your broker shop around.
- Increase your deductible.
- Pay annually rather than monthly.
- Improve your credit rating.
- Ask about discounts. There are numerous discounts available for both home and auto insurance. For example, teenage drivers can receive a discount for good grades; being a member of a union, organization, or school can lead to a discount; even having a household of non-smokers can be an advantage when it comes to insurance.
There are ways to save on insurance costs. Check in with your insurance broker to have them review your policy and see if there are ways to help you reduce your monthly insurance costs.