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Are you struggling with expensive car insurance premiums? You’re not alone. Car insurance rates seem to be going up every year, and the cost of keeping your car on the road has become increasingly overwhelming as a result. Lucky for you, there are a number of ways you can save money on your car insurance if you know where to look.
Find out more about the car insurance discounts you might be eligible for and learn how you can apply them to your coverage today.
Depending on which insurance provider you go with, you could stand to save up to 50% on your car insurance premiums if you play your cards right. The amount you can save will depend on which discounts are on offer from your provider and how many you qualify for. It will also depend on the maximum discount that your provider will let you apply to your premiums.
For example, let’s say you’re set to pay $200 per month for your car insurance without any discounts applied. Your provider says you can save 10% because you’re a student, and an additional 15% because you have a perfect driving record. That means you’ll save 25% off your premium (or $50 per month).
Just be aware that most insurance companies set a maximum amount of money you can save on your car insurance – even if you’re eligible for more. This is because your premiums need to be high enough to cover your costs if you get into an accident, while still allowing your car insurance company to turn a profit.
There are a number of different car insurance discounts you can apply to your coverage, based on what’s available with your provider. We’ve separated eligible discounts into four categories. Just be aware that most providers will only offer a selection of these discounts, and your savings will typically be capped at a maximum amount.
Insurance companies don’t always advertise their discounts to established customers, so it’s important to ask about what’s on offer. Discounts vary by province and insurance company. Compare the possible discounts you could qualify for and learn how much you can save:
Discount | Average savings | You may qualify for this discount by: |
---|---|---|
Bundling | 5% to 10% | Bundling various policies such as car, home and life insurance with the same provider. |
Multi-vehicle | Up to 25% | Insuring more than one vehicle on a single car insurance policy with the same company. |
Group | Up to 25% | Being a member of an eligible group, such as a university or professional association. |
New customer | 5% – 10% | Switching your policy to a new provider. |
Renewal | Up to 20% | Remaining with the same insurer for many years and renewing your policy with them. |
Autopay or full payment | Varies | Organizing autopay or paying for your full year of car insurance all at once. |
Safe vehicle | Up to 20% | Owning a vehicle with factory-installed safety features such as airbags, anti-lock brakes or a dashcam. |
Secure vehicle | Up to 20% | Owning a vehicle with factory-installed security features such as alarms, tracking systems and kill-switches. |
New vehicle | 5% to 10% | Owning a vehicle that’s under three years’ old. |
Private parking | 5% to 10% | Parking your vehicle in a private garage or driveway where it’s less likely to get hit. |
Winter tires | 5% to 10% | Installing winter tires on your vehicle to lower your risk of collision in hazardous conditions. |
Hybrid vehicle | 5% to 10% | Driving an eco-friendly or hybrid vehicle. |
Driver’s training | 5% to 10% | Showing proof that you’ve taken a driver’s safety course – usually reserved for drivers under the age of 21. |
Student | 5% to 10% | Being enrolled at a university or college and keeping your grades up. |
Away at school | Up to 20% | Showing proof that a student driver on your policy isn’t driving the vehicle when they’re away at school. |
Retiree | 5% to 25% | Being over the age of 60. |
Good credit | Up to 25% | Demonstrating that you have a credit score in the good-to-excellent range. |
Profession-based | Varies | Working in a job that’s deemed low-risk. |
Military | 5% to 10% | Being a member of the Canadian Armed Forces. |
Safe driving | 5% to 20% | Installing an app that tracks your driving habits to give you discounts for safe driving. |
Short commute | 5% to 20% | Keeping your mileage low or showing that your workplace is a short distance from your home. |
Experienced driver | 5% to 20% | Demonstrating that you have at least five years’ driving experience with no collisions. |
Convictions-free | 5% to 10% | Showing that you haven’t had a ticket for speeding or another traffic violation in several years. |
Claims-free | 5% to 10% | Proving that you’ve had no at-fault accidents during the past three to five years. |
Discounts are designed to reward you for your loyalty, experience and safe driving habits. They’re also in place to compensate you for reducing the risk to your insurance company. Just be aware of the following pitfalls when you sign up for a discount:
When you’ve exhausted all of the discounts you might be eligible for, you can look for further savings by taking the following actions:
There are a number of car insurance discounts that you can apply for if you know where to look. Your best bet is to get in touch with your insurance company directly to ask about how you can save money on your premiums. Find out more about which car insurance discounts you might be able to qualify for, and learn how you can apply to save money today.
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