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Car insurance is one expense that many people pay more for than they need to.
What would it take for you to change your car insurance company?
Look into car insurance to determine if you’re getting the best deal.
Also, there are 12 questions you should consider asking your car insurance agent before signing on the dotted line.
How To Get The Best Car Insurance Premium
Do you see many car insurance ads on TV and then get confused, wondering if you are getting the best rate for your vehicle?
My husband says there must be a lot of money in vehicle insurance for car insurance companies to keep putting out so many ads.
Would you change insurance companies if you could save several hundred dollars a year?
Looking into car insurance companies to get different quotes is worth your time.
Car Insurance Canada
Where should you start looking for a Car Insurance Company?
You can get free insurance quotes for the price of a phone call or search on the internet.
Start your list with a basic search for car insurance on Kanetix, where you can compare insurance quotes.
Ask your friends, family, and co-workers if they are happy with their car insurance company and agent.
Local agents can be beneficial if you have to make a claim and certainly don’t mind referrals.
I’d say to compare a minimum of three companies with your current one, but the more you contact them, the better your savings potential will be.
According to Canada Trust Many Things affect your Car Insurance Premium
- Driving History
- Type of vehicle you drive
- What the vehicle is used for?
- Your Location
- How many people will drive the vehicle?
- What you chose as coverage
- Industry related factors such as markets, inflation, taxes and regulations
As you get quotes and information from various insurance companies, you will want to organize your notes on a spreadsheet or paper.
Information to Include:
- Company Name
- Address
- Email Address
- Phone number
- Name of the agent you talked to
- Price/Quote
- URL of the company website
- Leave space to add comments to emphasize the positives and negatives of each company. Include another space for your questions for that company if you call them back. I highlight questions to ensure I can see them at a glance when talking on the phone to an agent.
Tip: Always ask what discounts the company offers. For example, State Farm has a Steer Clear Drivers Program you may be eligible to participate in and receive a discount on.
You may also find that belonging to a professional association, college, or university alums gives you a better premium.
12 Questions To Ask Your Car Insurance Agent
Here are 12 points, including some questions you may want to ask your insurance agent to help you save Big Money!
Are you Accident-Free?
A good driving record with few or no previous accidents may get you a great rate.
Don’t lie about anything on your application, like marital status or who will drive the car. They have ways of checking your information.
Is your Vehicle a Hybrid or Electric Vehicle?
Ask if you get a discount for driving a Hybrid or Electric Vehicle.
Which of my vehicles will be the cheapest premium for my teen driver?
If you have a teen or young adult driver, ask which car would be the lowest to insure if the young driver uses it as their primary vehicle.
What is the difference in price between different deductibles?
Many companies can change your deductible from anywhere up to $1000.
If anything were to happen and it was covered under your policy, you would pay the first $1000.
The higher your deductible, the lower your rate could be.
Do you have any Anti-Theft Devices?
If the car doesn’t have them when you buy it, you can sometimes install some after purchase to get an extra discount.
Always consult your insurance company first, as not all companies allow this, and they maintain it must be purchased factory direct.
How Many Miles Do You Drive Per Week?
Be sure to inform the insurance company how many miles you drive that particular vehicle on average weekly.
Ask how many fewer miles you would drive to qualify for a lower rate.
You might be able to carpool or take public transportation a couple of days a week to qualify for this.
Which car is best for long commutes to work?
If you have more than one car, ask which one would get the best rate for your daily commute.
Sometimes, switching vehicles can make a reasonably significant difference overall.
Generally, a newer car will cost more to insure, so driving an older car a longer distance makes sense.
If you plan to insure more than one vehicle with the company, find out which arrangement of miles per week per car gives the lowest total insurance bill.
Do you have Good Grades?
Some insurance companies even offer you a discount for good grades.
I see that working hard in school may pay off after all. It doesn’t hurt to ask.
Defensive Driving Class Young Drivers or Graduated Licensing
You may be eligible for a discount if you have completed Ontario’s Graduated Licensing System with a clean driving record.
You may qualify for discounts if you have completed a Ministry of Transportation-qualified driving course.
Are you Retired?
If you are a retiree, you may be eligible for a discount with your insurance company.
Make sure to ask what you need to qualify for this discount if offered.
Will a Multi-Vehicle or Product discount lower the rate?
Most companies will give you a better overall deal if you also switch your house, rental, or life insurance to their company.
If you have a boat, you usually get your best boat insurance deal with a bundle that includes your car and house.
The more policies you can include in the bundle, the more you can save.
It’s extra work, but it often yields significant savings.
Will buying a specific model or color vehicle give me a better rate?
When you buy a new car, check the insurance rates on the various models you are considering buying.
The cost difference of insurance between different vehicles can be significant.
Compare Insurance Companies
When you narrow your choices to two or three insurance companies, you can make your final selection on whatever basis.
However, the agent who consistently returns your phone calls or email messages quickly and seems happy to answer your questions should get strong consideration, in my opinion.
If you are considering companies with local agents, the deciding factor between similar bottom lines could be how comfortable you are with the agent.
You don’t need to wait to switch to a new company until your current policy expires or is almost expired.
The old company will refund you what you already paid, pro-rated to how many days are left on your policy with them.
So don’t let that hold you back.
You can even let your new insurance company coördinate it all; they often will take care of most of it for you.
Then, you can sit back and let your research pay off.
You’ll reap those savings year after year without any additional work.
After some years, you might want to check around to see if you can find a better deal, but often, you won’t need to change if you did good research in the first place.
We did this about 25 years ago, and nobody has been able to give us a better deal yet.
Twenty-five years of savings add up!
What other savings have you received from your insurance company?
Do you get savings for paying the year upfront instead of month to month?
Good luck, and I hope you find some significant car insurance savings that fit your budget!
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Maggie and I are on the same page today! Too funny.
I guess smart minds think alike and it’s an important topic that most people don’t think about. Cheers Mr.CBB
I switched companies in April and I will be saving almost $400/year! I’m so glad I did it! I get a discount because of where I work, I get another one for having my home insurance there as well, I get one for having a v.i.p banking package and a few more that I can remember off hand lol. I’m so pleased!
Good For you Jen! Did you change your deductible in the process or keep it the same?
awesome read!! I have done most of that – get a great discount through work, as well have my home insurance with them – I also asked if it would be cheaper if one of us drove a certain car (we have two cars) and it makes a big difference (almost a hundred a year!) for my husband who does more kms to work to drive the smaller car and myself who does less drive the sportier car (well they classify it as sporty!)
Hi Carla,
It makes a big difference if you ask questions. Even though we rely on the professionals sometimes if you don’t ask you won’t find out. Good for you getting some great discounts. What kind of a car do you drive that they call sporty? Thanks for popping in and leaving a message carla! Mr.CBB
Wow, I had no idea that insurance providers offer discounts for good grades. Interesting! I find it is more difficult in Canada to save money on auto insurance but looks like you’ve got it figured out 🙂
Don’t worry I was just as shocked. I’ve only lived here for 5 years lol… Thanks Daisy!!