Guide On How To Reduce Your Auto Insurance Premium

Finding a decent insurance company can be pretty stressful. Insurance rates in Ontario tend to be very high. Therefore, the customers try to search for the most optimal solution. The insurance premium depends on many factors, which means that the price is not fixed.

We are going to focus on trying to help you reduce your auto insurance premium in different ways. We will provide you with enough information on insurance in Ontario and various discounts you might be eligible to get. Make sure to stick around for some helpful tips.

If you want to learn more about the insurance premium or the various options you have if you seek auto insurance, visit Surex and explore on your own!

What Is Auto Insurance Premium?

Auto Insurance Premium is the amount of money that we pay to insurance companies in exchange for different insurance coverage types. The price is not fixed, but it is somewhat based on several factors such as:

• Your driving history
• The coverage that you choose
• The type of vehicle you own
• Age
•  Where you live, etc.

Furthermore, it is essential to mention the various coverages that insurance companies offer. For example, Surex partners with several companies that have the following types of coverage:

• Accident Forgiveness
• Car Rental Coverage
• Collision Coverage
• Comprehensive Coverage
• Depreciation Coverage
• Family Protection
• Third-Party Liability Coverage
• Windshield Coverage

Make sure to choose your coverage wisely because it will significantly affect your insurance rates and the overall premium. If you need specialized coverage for commercial trucks or want to understand how different types of vehicles impact your premium, knowing the average tow truck insurance cost can offer helpful insight. This can guide you in making more informed decisions when comparing policy options.

Next up, we are going to talk about the changes you can make to reduce your premium!

How Can I Lower My Premium?

Lowering your insurance premium is not an easy thing to do, but it is not impossible! There are numerous options to choose from if you do some research. Moreover, we are here to help you as well.

We are going to list and explain some of the best ways to do so:

Take Minimum Coverage

If your budget is not very big, then choose the right coverage for yourself. Make sure to get the minimum coverage required by law. This is usually third-party liability coverage, which is obligatory because the insurance company must ensure that the other side is not at risk if you are in an at-fault accident.

Choose a Convenient Vehicle

Instead of choosing a fast vehicle with many horsepowers, go for a cheaper option that will get you from point A to point B. Of course, this only applies if you use your car for practical purposes and do not need anything too expensive.

Insurance companies are aware that if you have a fast car, you are going to drive faster. Reckless driving means more accidents and more damage to be paid for.

Be smart about your purchase and save money in the long run.

Explore Your Options

Make sure you do not go for the first insurance company you see. Instead, explore your options, compare quotes, and make a well-informed decision.

If you find this process overwhelming, you can always hire an insurance specialist. These companies usually have partners among insurance companies, providing you with different rates and quotes. You will be connected with a personal assistant available for any possible inquiries.

Whichever option you choose, do not forget to do the research first.

Good Credit

The insurance company will check your entire driving history before taking you on as a client. When it comes to dealing with prices, they will inspect your history of paying bills. If you were punctual and did not cause any trouble to the insurers, that means that you have good credit, which makes you eligible for this bonus.

Claims-Free Discount

You can save up to 10% annually if you are a responsible driver. This means that you must have proof that you were not in an at-fault accident for at least six years. Your history must show that you did not make any claims against your insurance company in the past couple of years.

Insurance companies will reward your good driving behavior. 

Conviction-Free Discount

Avoid traffic convictions if you would like to get this discount. It will save you up to 10% on your annual premium. Try to stay clear of any speeding tickets or traffic violations for at least three years. However, photo radar and parking tickets are not considered, and they will not stain your record.

Telematics Discount

Telematics is a combination of telecommunications and informatics. It collects and transmits data on vehicle use, such as speeding, braking, fuel consumption, location, etc. It is pretty much a tracking device that not many insurance companies offer.

You can show them an improvement over time and earn this bonus. This program will save you approximately 5 to 10% at the beginning. Nevertheless, the numbers can increase later on.

Deductible Amount

A deductible amount is the amount of money you pay out of your pocket in case of an accident. This amount is not set, but you instead determine it based on your abilities.

For example, if there is damage of $1500, and your deductible is $500, it means that you will cover that amount, and the insurance company pays for the remaining $1000.

If you want your premium to be as low as possible, make sure that your deductible is higher. However, keep in mind that this is money that you will possibly have to pay in the future.

Endnote

We can conclude that it is not at all whimsical and indeed possible to reduce your insurance premium. There are several ways of doing this, and we have explained some of the possibilities above. Make sure to consider our advice when getting your insurance premium.

Getting insurance might be a tedious process, especially when it's not the area you operate in, but we hope your approach is a bit easier with the above information.