Having sufficient auto insurance is prudent and smart, but there is no doubt that it adds to your driving expense. Fortunately, premiums can vary from province to province, and the difference could be hundreds of dollars. Be sure to assess your insurance at your renewal period to ensure your coverage is in line with your needs, and follow these steps to reduce your premiums and save on car insurance.

1.  Shop Around for Auto Insurance

Auto insurance prices will vary from carrier to carrier, so it pays to undertake some comparison shopping. Obtain at least three quotes from different providers and different types of carriers – that is, providers that sell policies through their own agents, those that provide coverage through independent agents and those that sell insurance directly to you.

You may also ask relatives and friends for recommendations based on their past experiences, and exercise due diligence by digging more about the company before making a commitment.

Make sure you understand car insurance well enough to ask your potential provider solid questions. Any insurer you approach should answer all questions to your satisfaction since you will get back to them should the worst happen and you need to file a claim.

Remember that the lowest price won’t always be the cheapest option. Obtain coverage from a reputable company, and ensure you are comfortable with the service you receive. You can visit online consumer information sites for information about customer complaints about companies. Assessing all these aspects will help you pick the right insurer for your needs.

2.  Change How You Pay for Insurance Premiums

Insurance providers like it when you make their job easier, and they will reward you with lower premiums. Changing how you pay your premiums can help you save money on your policy. Changes you can make to the way you pay premiums include:

• Paying in full. Rather than paying monthly premiums, you may consider paying your premium in full every six months or once a year. You will save money getting off a monthly payment plan since your insurer won’t incur costs to process your payment each month.
• Setting up automatic payment. Some insurers will lower your premiums if you set up automatic payments. This acts as an incentive for taking a step towards not missing payments.
• Pay in advance. Paying your premium in advance may help you score a discount on your policy.

3.  Bundle Your Insurance

You’ve probably heard about bundling in insurance, and it is one of the easiest ways to save on car insurance. Bundling policies simply means purchasing multiple policies from the same carrier. For instance, you purchase homeowners’ and auto insurance policies from the same carrier. This way, you will only make one convenient payment when you need to pay your premium. Besides, insurance companies will offer multi-product discounts if you combine policies.

4.  Ask for Discounts

Irrespective of where you purchase your auto insurance, you will want to inquire about any available discounts. Insurance discounts are a convenient way for you to reduce your premium rates – and it is incredibly easy to secure them. For instance, some insurance companies will provide discounts for going about your normal routine, like owning a home. Other common auto insurance discounts include:

• Multi-policy discount. Multi-policy discount shaves some money off your premium for bundling policies or buying multiple policies with the same insurer.
• Multi-car discount. You may qualify for a multi-car discount for owning more than one vehicle.
• Accident-free discount. You will qualify for this discount if your car has been insured for three years without a chargeable accident.
• Defensive driving discount. You can get a discount on your premiums for taking a driver safety course.
• Anti-theft discount. Installing anti-theft devices, like an alarm system or tracking device, can help you qualify for an insurance discount.
• Anti-lock brakes discount. You may qualify for a discount on your premium for having a factory-installed anti-lock braking system.
• Telematics discount. Some insurance companies will offer a discount for letting them monitor your driving habits through a telematics device.

5.  Raise Your Deductible

A deductible is the amount of money you are responsible for paying towards an insured loss. As a rule of thumb, choosing a higher deductible will lower your monthly premium. By choosing a higher deductible, you are simply agreeing to take a bigger portion of the cost in case of a claim, thus reducing your insurer’s financial obligation.

If your deductible is $1,000 and you are involved in an accident that results in $1,500 worth of damage, you’ll pay $1,000 while your insurer will pay the remaining $500 towards the claim. Make sure you have sufficient money to pay the higher deductible if you make a claim.