Purchasing auto insurance is essential if you want to have coverage in case of an accident or if your car gets damaged due to a peril. Today, several insurance companies offer this type of policy. However, we understand that sometimes the premiums can be too expensive. That’s why we are going to tell you how to find low-cost auto insurance in Canada.
Keep in mind that the tips we will mention below will help you get a more affordable premium. But, several factors play a key role in the price of your insurance policy. That’s why before we tell you all about getting the best deals, you need to understand how the insurance company decides the price of your coverage.
Factors that affect your insurance premium
When you are trying to find low-cost auto insurance, these are the elements that you need to consider.
- Your type of vehicle
If you want to have auto insurance at low cost, you need to look out for some crucial elements when purchasing your vehicle. For instance, make sure your car has anti-lock brakes and anti-theft devices. That way your policy won’t be considered high risk, which reduces the value of your premium.
Believe it or not, all insurance companies take into account the neighbourhood you are living in. Plus, where you park your vehicle. In this regard, if you live in a rural area, chances are you’ll have low-cost auto insurance since there are fewer risks. In an urban area, premiums are high because accidents and vandalism are common.
Even though being young bring many benefits in life, that is not the case for auto insurance. Most insurance companies look at young drivers as less experienced. That’s why their premiums are usually higher.
A great part of your premium value will depend on how much coverage you want. Remember, that you should get all the protection that you need. Don’t try to get auto insurance at a low cost by cutting corners. Even if your premium costs a little more, you need a proper insurance policy.
The deductible you choose will be the amount to pay out of your pocket when you file a claim. For instance, let’s say you get into an accident, and the cost of the damages is $2000. If you have a deductible of $300. The insurance company pays the remaining value, which will equal $1700. The deductible is important since the higher the deductible, the more affordable your premium will be.
In case you have more questions about how auto insurance works or how to find the best quotes, click here.
7 ways to get auto insurance at low cost
When you start shopping around for different policies, the first thing you need to keep in mind is that you can get low-cost auto insurance online or in person. Many people are used to getting their insurances by going in and talking to an agent. But, especially in the middle of this pandemic, you should consider looking for low-cost insurance online.
If you want to find the best affordable policy, here are the steps you need to follow.
- Choosing your vehicle
Above we talked a little about the elements you need to have in your car for a lower premium. But, also another thing you need to take into account is what kind of vehicle you are going to buy. For instance, if you purchase models that are high-end or vintage cars, your premium will be expensive. This happens because your insurance company will calculate how much it will cost to replace it in case of peril. That’s why at the beginning, we recommend looking at models that have low claims.
- Bundle your policies
The majority of people opt for this option since it is the easiest way to have low-cost auto insurance. The only thing you need to do is purchase various insurance policies with the best company to get an overall discount. You could get your homeowners and auto insurance with the same provider.
- Pick your coverage
Depending on your individual situation, there are cases in which you can forget about some types of protection. In case you have an old car, you could skip collision and comprehensive coverage. Because the first one will help you cover the reparation cost, but with a used car it will be better to just replace it. The latter one is meant to protect your vehicle when you are not driving it. For instance, if during a storm a tree falls over it. But, if you have a secure parking spot, you can skip that part of the policy.
If you are trying to figure out which one will be your perfect insurance plan, we recommend, talking with an experienced insurance agent.
- Ask for quotes
If you want to get the best rates in insurance policies you need to ask for several quotes. It is important to talk with different insurance agents. Then, compared or the plans and depending on your necessities, purchase your coverage. When looking for companies, it is essential to do your research and not stick only with the ones that appear as Google’s top results.
- Have a good driving record
One thing that can exponentially increase the cost of your premiums is your driving record. This means you can’t have multiple accidents or driving convictions. All these faults can stay in the system for years, the reason why it is better to drive safely.
- Take a proper driving course
If you are a new driver, or if you feel you need more experience on the road, we recommend taking a proper driving course. Even though this might be an extra expense, the lessons will ensure you know all the rules. Plus, a certificate can help reduce the cost of your premium.
- Paying your premium at once
The majority of companies offer a discount for users that are able to pay the premium at the beginning of the year. This also applies if you set your billing biannually. To find out more about this matter, you should talk to your insurance company.