Much to the chagrin of Quebec drivers, car insurance premiums are expected to increase significantly this year, as we had announced in our previous blog article on the subject. Nevertheless, we all have a budget to respect (and there are certainly more fun things to spend money on than insurance). In this article, Assurances Multi-Risques shares a few common mistakes to avoid so that you can save on your car insurance premiums.
8 mistakes to avoid if you want to save on your car insurance premiums
Not being a careful driver
To save on your car insurance premiums, it is recommended that you drive carefully and abide by the highway safety code, because the more accidents you have, the more claims you’ll make and the higher your insurance premiums will be.
Driving safely will also allow you to avoid getting tickets, which also have an impact on your premiums. With a clean record, you’ll be able to benefit from discounts given to car owners who have had no fines or accidents.
Making too many small claims
Insurers rely on claim frequency rather than claim severity to determine your premiums. Therefore, the more claims you make, even if they are small, the more likely you are to see your premiums go up.
So if something unexpected happens (like a windshield that needs to be replaced or a fender-bender), contact your insurance agent or broker. An insurance broker can advise you on whether it’s advantageous for you to make a claim or not.
To find out more about the impact of filing too many claims, you might want to have a look at our previous article on the subject.
Lowering your deductible
On the contrary, to lower your car insurance premiums, you should instead increase your deductible, which is the portion that you have to pay in the event of a claim.
Why? Because a higher deductible means that you will pay more to have your car repaired and your insurer will pay less. The latter will therefore charge you lower premiums.
However, you need to be sure that you have the financial resources to pay the higher deductible should the need arise!
Choosing a car targeted by car thieves
Statistics show that certain models are more likely to be stolen. If you choose one of these models, your premiums will be higher. So, before buying a new car, find out more about this subject.
You should also be aware that older models are generally less expensive to insure than recent ones.
Using several insurers to insure your vehicles
To save money, it is recommended that you use a single insurer to insure your vehicles. In fact, most offer favourable discounts in such cases!
Choosing inadequate coverages
Insurance companies often offer many additional coverages. And even though they may seem tempting, you may not need all of them.
In short, be careful! Choose only those that are necessary for you. An independent insurance broker can help you choose the right ones, because they are not affiliated with any insurance companies.
Neglecting to update your file regularly
When there are changes in your life, such as living closer to your place of work, or the purchase of a car by your child who used to borrow yours—take the time to call your insurer and check that you are insured based on your exact profile!
If not, you’ll continue to pay needlessly for coverages that no longer correspond to your situation.
Not doing business with an independent insurance broker
Instead of contacting several insurance companies directly to try to find the best coverages at a fair price, do business with an independent insurance broker.
They are completely impartial and will do all the legwork for you with the different insurers to inform you of the different possible options. They will find the best possible rate, and, most importantly, the best coverages based on your needs.
Conclusion
Now you know the pitfalls to avoid if you want to save on your car insurance premiums. However, there are other tips that will allow you to save money: telematics, the installation of an anti-theft device, using the same insurer for car and home insurance, etc. To learn all the tips, don’t hesitate to contact an independent insurance broker!
