It's not often the first thing you think of when you're looking to save money, but your car insurance represents a significant savings potential. If you haven't shopped around with different insurers in recent years, you'd be well advised to do so in 2022. You don't have to wait until you change your vehicle to look for ways to save on the cost of your premium. In this article, we'll look at 5 ways you can save on your auto insurance policy.
Maintain a good credit rating
When you apply for insurance quote car, you've probably noticed that insurers ask for your authorization to carry out a verification of your credit file. This is a visualization, not a credit application, so this verification, although it will appear in your file, will have no impact on your credit rating.
Insurers do this because your credit rating influences your car insurance premium. In fact, insurers prefer to offer discounts to customers with a good credit rating, since statistically, they represent a lower risk of claim.
Have an exemplary driving record
What is a driving record? Your driving record is recorded by the SAAQ and includes information such as :
- Your driver's license category
- The status of your driver's licence
- Your driving experience
- Your medical record
- Your past offences
- Your demerit points
Your driving experience will have an impact on your insurance premium, since an experienced driver represents less of a risk to insurers than a young driver. However, you obviously can't influence this aspect. The only criteria that have an impact on your driving record and that you can influence are your offenses and demerit points.
In fact, insurers generally offer substantial discounts to vehicle owners who have not had an accident or been ticketed. It's in your interest to drive carefully.
Shopping for insurance
Although this can be a painful exercise, it's necessary. If you've been with the same insurer for several years, it's in your best interest to store around, since insurers are often generous when it comes to attracting new customers. In fact, it's very likely that you'll get a discount for the first year of your new contract. Although these discounts disappear over time, they are often considerable when you sign.
Reviewing insurance coverage
You can choose to review your coverage to lower your insurance premium. The only mandatory coverage in Quebec is civil liability insurance. However, reducing your coverage to save money can be risky. It's essential to assess your risk tolerance before choosing this option, and to think about your ability to cover the costs of repairing your vehicle if necessary.
Should you opt for additional coverages such as fire, theft, vandalism, glass breakage and comprehensive? For example, if you don't take out coverage for damage to your vehicle, you won't be entitled to compensation in the event of an accident for which you are at fault, damage to other people's property (other than your vehicle), and so on.
Consider the cost of insurance before buying a vehicle
If you're thinking of changing your vehicle in 2022, it's important to know that the model and characteristics of a vehicle influence the cost of your insurance. Once again, it's the potential risk that determines the premium.
For example, a sports car or one of higher value represents a greater risk of theft. Also, you're more likely to get a lower premium with a new vehicle than a used one. In any case, before choosing your new car, you should take the time to check the cost of the insurance associated with it.
The aspects mentioned in this article are just some of the key factors influencing the cost of your automobile insurance policy. The important thing is to be protected by coverage that's right for you, and the only way to do that is to get quotes from several insurers and ask the right questions.
You can use online insurance premium comparators, make your own arrangements with different insurers, or call on the services of an insurance broker who will certainly be able to guide you through the process.
