Tips for Saving Money on Car Insurance

The following tips may help you save money on your car
insurance:
■ Build a good driving history free of accidents and
convictions. This means driving carefully and obeying
the rules of the road. Wear your seat belt and don’t use
your cell phone while driving. Don’t drink and drive.

■ Be a comparison shopper. Talk to your friends and
neighbours. Make some phone calls and check
websites for on-line quotes. Compare rates. Different
companies price policies differently. Do your shopping
well in advance of when your current policy expires.



■ Don’t pay for coverage you don’t need. For example,
it may not be cost effective to have Collision or
Comprehensive coverages on a car that is worth less
than $1,000 because any claim you make would not
substantially exceed your deductible or the annual cost
of the premium.

■ Consider higher deductibles. This means you’ll
contribute more toward the loss if you have an
accident, but it will also mean a lower premium.

■ Make sure you always pay your premium on time.
If you pay your premium by cheque or through
automatic withdrawals from your bank account, make
sure you always have enough money to cover your
payment. If your insurance company is unable to
withdraw your payment because you don’t have
enough money in the account, it could result in the
is cancelled for nonpayment of premium more than
twice, and you have to purchase car insurance all over
again, many companies may consider you a higher risk,
and you could pay much more for your car insurance.
Also, if you’ve had your insurance policy cancelled
more than once over the past three years because you
failed to pay your premium, insurance companies are
not required to offer the option of monthly payments.

■ Choose the type of car you drive wisely. For example,
if you buy a car with a high theft rate, your premium
will be higher. Choose a car with good security
features.

■ Take advantage of discounts which may be available
to you. (See the section called “Discounts” for more
information.)

■ Make sure you tell your broker, agent or insurance
company about any changes (e.g., different drivers,
different use of the car) on your policy. In some cases,
your premium will drop.