With car insurance being compulsory in Ontario, drivers have no other choice but to pay for it. Sadly, this payment can be frustratingly high for many people, but is there a way you can reduce it? That’s what we wanted to find out here.
There are a few great methods that allow you to reduce your monthly premiums. Here, we’ll look at eight of the most significant, and you can see which ones are best for you. Let’s get started!
Best Ways to Lower Car Insurance Ontario
If you’re looking to reduce your auto insurance Ontario then here are eight great methods to consider. They may not all be applicable to you, but hopefully, you get some great ideas.
1. Shop Around
It’s important to shop around when looking to buy auto insurance. Two companies may assess risk in two different ways, leading to two very different prices. Without shopping around, you may end up paying much more than you need to.
If this sounds like hard work, it doesn’t need to be. Along with many other benefits, an insurance broker can do this hard work for you and find a great quote. But whether you use a broker or go it alone, don’t rely on just one quote from an insurance company.
2. Choose Cheaper Coverage
While car insurance is mandatory in Ontario, there are different levels of coverage you can get. For example, if you only have a cheap car, then you may be happy not to have any coverage for damage to your vehicle and only the legally required liability insurance.
Of course, there are risks that come with this, as you won’t be getting full financial protection. However, it’s a great way to save money if a lower level of coverage suits your circumstances.
3. Install an Anti-Theft Device
Some vehicles are more prone to theft than others. Know that in the insurance world, the higher the likelihood of incidents, the higher the insurance rate. One way to lower insurance premiums is to make your car less prone to theft. Installing an anti-theft device is one of the easiest ways to do this.
4. Drive a Car with a High Safety Rating
Some vehicles are less prone to accidents than others. If your vehicle has a higher chance of being involved in an accident, expect your insurance rate to be higher. So, to lower car insurance rates in Ontario, go for cars with high safety ratings.
These cars have advanced safety features that make them less prone to accidents. For example, features like blind spot monitoring and automatic collision braking can help reduce collisions.
5. Go for a Used Car Versus a New One
The higher the value of a car, the higher the insurance rate will be because it’ll be more expensive to replace in the event of an incident. Since new cars cost more than used ones, they generally command higher insurance rates.
However, there is a balance to be found. As mentioned above, a car with a good safety rating can save you money, so it’s best to look for a high-quality vehicle but one that is affordable. If you’ve not yet purchased a vehicle, double-check how it will affect your insurance before you buy it.
6. Install Winter Tires
Ontario’s harsh winters are another reason the province’s insurance rate is higher than the national average. This is because accidents are likelier to occur on roads covered with snow, so it’s important to get your car winter-ready.
Installing winter tires to make your car less accident-prone during winter can lower your insurance rate. Often, you can receive a 2%-5% discount on your insurance premium.
7. Drive as Safely as Possible
As you’ll know, people who drive safely are less likely to cause accidents while driving. One way insurers assess safe driving is the number of at-fault claims an individual has made in the past.
People who drive safely generally cause fewer collisions, leading to fewer insurance claims. You may also want to purchase accident forgiveness to ensure your insurance rate remains low after a first at-fault accident. But know that accident forgiveness is for only proven safe drivers.
8. Reduce Your Annual Kilometres
The higher your annual kilometres, the higher your insurance rate. The reasoning is that the more you are on the road driving, the likelier you are to have an accident. Another way to reduce your insurance rate in Ontario is to reduce the number of kilometres you drive annually by limiting how far or how often you drive. Practical ways to do this include taking public transport to work and working from home.
9. Move to Low-Rate Areas
The average insurance rate varies from place to place within Ontario. There are a few reasons for this, including factors like traffic conditions, rate of crime, average costs of repairs, and weather conditions. Simply put, an insurance company will know which areas make the most frequent and highest-value claims.
Of course, moving home to get a few dollars off your car insurance is impractical for most people. However, if you were already thinking of moving to a new area, Kingston, Amherstview, Elizabethtown, Martintown, Brockville, Iroquois, Cornwall, and Gananoque are the cheapest areas to get car insurance.
10. Be a Good Insurance Customer
In the competitive world of insurance, insurers do a lot to ensure they attract and retain customers. This includes offering discounts to people they perceive as good insurance customers. Some ways to be a good insurance customer include:
Be Loyal to One Insurer – Many insurance value loyalty and reward their loyal customers with a loyalty bonus.
Combine Your Auto Insurance with Home Insurance – Insurance companies want to have as much of your business as possible. They usually offer discounts to encourage people to bundle their car insurance policy with their other policies.
Pay an Annual Premium – Insurers generally prefer processing one annual payment than multiple monthly payments as it costs less to process and ensures they have all the money upfront.
While Ontario’s car insurance rate is higher than the national average, you do not have to overpay. From driving safely to being a good insurance customer, there are different ways to lower your insurance rate.
If you’re looking for a lower auto insurance premium, then Marathon Insurance can help. Contact us today, and we’ll be more than happy to give you a quote and answer any questions you may have.
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