March 27th, 2012
7 Things You Can Do Today To Lower Your Car Insurance Rates
As you know, there are many factors that influence your auto insurance rates. The problem is, some of them require a lot of time or effort to improve. For example, your driving record is critical, but waiting for accidents and traffic violations to drop off can take years. The type of car you drive also plays a role, but replacing it is high-maintenance. Likewise, your living address can influence your rates, but moving to another zip code just to pay less for auto insurance isn’t an option for most people.
Fortunately, there are several things you can do today that will have an effect on your rates. They take very little time or effort. We’ll cover seven of them below.
#1 – Pay Your Premiums Annually
If you pay your premiums monthly, try to pay them annually. Otherwise, your insurance company will add a small administrative fee to each month’s bill. The fee may only be $8 to $10 per month, but it will add up over the course of the year. By paying your premiums on an annual basis, you’ll avoid the fee.
#2 – Drop Unnecessary Endorsements
In order to drive legally, you need Accident Benefits coverage. You also need Third-Party Liability and Uninsured/Underinsured Motorist coverages. Each of these are mandatory in every province and territory.
But many coverages, such as collision and comprehensive, are optional. You’re not required to have them in order to drive. Collision and comprehensive are notable endorsements because both coverages are expensive.
If your vehicle is old and its market value is low, consider dropping collision and comprehensive. Your insurance rate may decline by 20 percent or more.
#3 – Consolidate Your Insurance Policies
Most insurers offer a discount for consolidating your policies under their roof. If you have your property insurance with one provider and car insurance with another, let one company handle both. You may receive an immediate discount of 10 percent or more.
Keep in mind this also applies to multiple auto insurance policies. For example, if your car is covered by one company and your spouse’s car is covered by another, consolidate them.
#4 – Install An Anti-Theft Device
If you carry comprehensive coverage, you’re covered in the event your car is stolen. But realize the rate you’re paying is based on the risk your insurer will one day have to pay out a sizable claim. Thus, if you reduce the likelihood that your vehicle will be stolen, you’ll earn a discount.
A lot of insurance companies lower their policyholders’ rates if they install an anti-theft device into their vehicles. Such devices include alarm systems, steering wheel locks, and immobilisers. If you already have one of these mechanisms installed, inform your insurer and ask for a discount.
#5 – Raise Your Deductibles
There’s a good chance your deductibles are too low. Most people keep them low, so they won’t be forced to pay much money in the event they need to file a claim. But that is usually a self-sabotaging approach to deductibles. The lower they are, the higher rates you’ll pay.
Here again, it’s worth remembering your rates reflect your insurer’s risk. By increasing your deductibles, you’ll lower their risk, which in turn lowers your rates. Also worth noting, if you’re a safe driver, there is very little chance you’ll need to file a claim in the first place.
#6 – Review Your Coverage Limits
Have you checked lately to note whether your coverage limits are still appropriate? If not, they may be excessive, which means you’re paying higher premiums than necessary. Certain life events can dramatically alter our coverages needs. For example, suppose you have recently retired and downsized your estate. Your coverage limits may still reflect assets you have long since sold or divested.
Review your coverage limits periodically to make certain they are still suitable given your circumstances.
#7 – Request Quotes From Competing Auto Insurers
Surprisingly few people compare the rates they’re currently paying with the rates offered by other car insurance companies. As a result, many consumers pay more than necessary for their coverages.
In some cases, it’s due to laziness. It is much simpler to renew a policy each year than to check whether lower rates are available with another insurer. In other cases, the lack of action is due to a misconception about the auto insurance industry. A lot of people believe that all insurers charge the same premiums.
Compare quotes from several insurance companies on a regular basis. Do so at least once a year, a month or two before your current policy expires.
Although many of the factors that influence your premiums can’t be changed overnight, a few can. Start with the seven suggestions above. You might find that you can reduce your rates more quickly than you thought possible.


As noted, collision coverage is an optional feature of your policy, which means it can be dropped at your discretion. It covers damage sustained by your vehicle as the result of an accident you cause. The accident can involve another driver, or only yourself – for example, colliding with a tree, rail guard, or wall. Your insurer will compensate you for repairs made to your car up to its cash value. If the damage is extensive, they may decide to “total” your vehicle, and pay for a replacement.
Comprehensive is also optional, and can be dropped at anytime. In contrast to collision insurance, it covers damage to your car stemming from events unrelated to an accident. For example, if your vehicle is damaged by falling rocks, this feature of your policy would cover the necessary repairs. So too would comprehensive cover repairs or replacement costs arising from vandalism, theft, and fires.