Insurance

7 ways to Save Money on Car Insurance in 2023

By personalizing your coverage and finding ways to reduce your costs by partnering with a licensed insurance advisor, you can stay protected and keep more money in your wallet.

Short-term hacks

Did you know that you might qualify for savings because of things you already do?

Auto insurance companies offer discounts to drivers who do things that help reduce their risk of an accident or making other types of claims. For example, if you install winter tires on your car in the winter, drive your car only for fun with low mileage, or have an anti-theft device, you can all save money.

New driver or student in the house

Drivers with a new license may be eligible for savings when they graduate from a beginner’s license and move to a different license level. Also, let your insurance company know if children listed as drivers on your policy attend school outside the home. There may be some savings on your insurance premiums because they have limited access to your car.

Bundling your car insurance

You can also save money on car insurance by bundling your car insurance with your home or renter insurance or by insuring several cars in the house with the same company.

Employers and associations

As a member of a trade union, professional association or other organization, you may be eligible for an insurance discount.

Customize your coverage

Another way to reduce the cost of auto insurance is to personalize your coverage. Mandatory coverage is required such as: civil liability and accident insurance, that provide cover if you have an accident that causes personal or material damage. But there are other types of coverage that may be optional, such as collision and comprehensive coverage and roadside assistance.

Make sure your plan meets your needs today. While you shouldn’t give up on the coverage you need, one size doesn’t fit everyone — and your needs may change over time. Is your car several years old? Its value may have dropped significantly, which could affect your need for something like: collision and extended coverage on your vehicle. You may also want to consider increasing your deductible, which is the amount you pay when you make a claim. If you take out insurance with a $1,000 deductible, you may pay less in premiums than if you took out insurance with a $500 deductible.

In general, adjusting your coverage can help you:

  • Save money by paying only for what you need
  • Protect you and your family
  • Adjust your coverage as your life changes

Longer term strategies

Now that you’ve found some quick savings opportunities, you’re probably wondering if there are any longer-term changes that can help you save money on your auto insurance in the future. The good news is that there are.

Tickets and accidents

Your driving record is an important factor in determining how much you pay for insurance. It includes your license class, number of license years, traffic beliefs and claims.

The most important thing is to drive safely and not get any driving violations such as speeding, not yielding or distracted driving to name a few. Fortunately, parking tickets won’t affect your insurance rates, but avoiding them will still help keep money in your wallet.

What about accidents then? Unfortunately, mistakes happen – after all, it’s not called an “accident” for nothing. Getting pre-accident waiver coverage is another long-term strategy for protecting against future premium increases after your first at-fault accident. But remember: Accident waiver coverage helps keep your premiums from rising after your first accident. Any accidents you have after that will likely affect your insurance premiums.

creditworthiness

Another way you can lower your premium in certain provinces is by having good credit (excluding Newfoundland, Labrador and Ontario, where credit scores should not be used for auto insurance premium calculations). The better your credit score is, the lower your insurance premiums can be if you choose to disclose it.

Vehicle type:

Get insurance quotes for the vehicles you’re considering leasing or buying before closing the deal. The year, make and model of a vehicle can affect the cost of your insurance. Some cars are more likely to stolen or more accidents, so insurance companies charge more to insure those vehicles. By checking rates beforehand, you can save a significant amount of insurance premiums over the life of your vehicle.

Please check your policy every year to ensure that all information is correct and up to date. Ask questions if there are any discounts your insurance company offers that you qualify for. An adviser from RBC Insurance can help you with this. Call 1-877-749-7224.

This article is for general information only and should not be construed as legal, financial or other professional advice. A professional advisor should be consulted about your specific situation. The information presented is believed to be factual and up to date, but we cannot guarantee its accuracy and it should not be considered a complete analysis of the topics discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third party or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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