Sometimes it might seem like saving on your car insurance is impossible; after all, car insurance rates are what they are: there’s no flexibility afforded to insurance companies when it comes to pricing. Insurance companies file their rates with the government on a fixed schedule, so saving money falls to you and the decisions you make when shopping for your insurance policy.
Shop for the Best Rate
One of the most important steps in finding the cheapest car insurance rate is shopping around for the best price. Insurance companies have different risk pools and financial situations, so rates vary from company to company often by thousands of dollars. This is because the rates reflect how each company fared previously in the claims department: if there were a higher number of claims in the previous quarter, they might have to raise premiums this quarter in order to offset these losses.
Shop for a Safe Vehicle
A general rule of thumb is the safer the vehicle, the lower the premium, with obvious exceptions for more expensive or performance vehicles. Insurance companies face billions in litigation claims every year as a result of personal injury lawsuits, so if the insurance companies know the car is safe, they’re more likely to give you a lower premium.
Newer crash testing methods from the Insurance Institute for Highway Safety have forced manufacturers to make safety a priority. If it’s important to the insurance companies, it’s important for your wallet!
Shop for Home and Auto
It might seem obvious, but bundling all your policies together with the same insurance company usually means an instant 15-20 per cent discount on the combined policy. Furthermore, most insurance companies offer other added benefits, like a combined deductible, or increased liability limits free of charge. Bundling your motorcycle, ATV, snowmobile, RV, or boat with the same company will help you save as well, if the company insures recreational vehicles.
Shop for Discounts
Car insurance companies provide discounts for a wide range of clients, like the winter tire discount, good student discount, alumni association discount, or company discount. There are tons of discounts available, and it varies depending on the company. Be sure to ask your broker about any discounts you might qualify for!
Whatever type of insurance you’re looking for, it’s still important to shop around for the best rate and do your research.