Lower your insurance costs

By Caitlin in Posts

In a tough economy, families are looking for any ways that they can cut their budgets. One way that many families are doing this is by trying to lower their insurance costs for their vehicles. The easiest way to do this is simply to do a little research and find a less expensive policy.

Automobile insurance is driven by supply and demand, and when one company is able to offer multiple discounts or really low rates, the other companies tend to follow suit. With so many insurance companies vying for Canadians’ business, it is prudent to make sure that your vehicle insurance is as low as it can be while still maintaining the service that you demand.

Steps to lower insurance costs

The first step is the most important one. Make sure that you do not fear shopping for a different auto insurance carrier. Many people think that loyalty matters, and while being with the same company for many years may seem important, it is quite possible that your rates have risen slowly but surely over that time. If you have a local insurance office with a big name company, it is quite possible that your local agent has no choice but to raise your rates when the corporate office says to do so, and unless you argue about it, you’ll pay more than you have to.

If you still feel uncomfortable ditching your old company, talk to your agent and discuss lowering prices. You can still shop for other prices, but bring those quotes back to your current provider and ask them to match it to help you get the price you deserve.

Once you have made up your mind to shop for auto insurance, simply go online and search for ‘auto insurance companies Canada’. You will be directed to many different companies. Some of these companies will be names that you recognize and some will not, but it’s good to get a wide variety. Enter your information and begin taking prices and bids. Also, make sure that you push to receive all of the benefits that you are entitled to. Discounts such as: good driver, multi-policy, good student, and accident free can help lower your insurance costs.

Once you have bids from several places, you can start to see the range of prices, and you’ll be surprised at how much they vary. Be sure to check the amount of coverage you are receiving so you continue to have a policy with a deductible and other requirements you are comfortable with.

What is the catch?

There usually is no catch. If you have not shopped for insurance lately then it is quite possible that you have been paying too much for some time. The one area that you do want to be careful with is your deductible. Make sure that a low price is not because the computer or agent has set a higher deductible than you can afford to pay. If you only want a $250 deductible then make sure that you have set that limit online or with your agent.

If you are not that comfortable with the Internet or computers then simply have someone help you. Maybe a son or daughter or even a grandchild can help navigate you through the Internet until you are comfortable surfing on your own. Also, make sure that the Internet is searching for Canadian insurance. Most websites will be triggered to download to Canadian parameters because of the .ca. If not, then be careful that you are not shopping for insurance in the United States and get confused. If you don’t want to use the Internet, get a phone book and start making some calls. However it gets done, it can save you a surprising amount.

There are many ways you can cut back on your budget in lean times, and one simple way is by making sure that you are getting the absolute lowest price on insurance. The Internet has been great at bringing together hundreds of insurance providers with just a few clicks of the mouse. Do not be afraid to shop around; there are no obligations to buy and you just might be able to save you and your family hundreds of dollars a year by switching.


All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster.

Loans Canada and its partners will never ask you for an upfront deposit, upfront fees or upfront insurance payments on a loan. To protect yourself, read more on this topic here.