Auto insurance premiums rising: What can Canadian drivers do to trim the bill?

In Canada, drivers are facing an upward trend in auto insurance premiums, a reflection of rising repair costs, increased vehicle values, and more frequent and severe weather events. If you’re among the many looking for ways to reduce your insurance costs, there are a number of strategies you can consider.

Firstly, shop around and compare rates from different insurance providers. Insurance companies use different criteria for calculating premiums, so getting multiple quotes can help you find the best deal. Online comparison tools or speaking with an insurance broker can aid in this process.

Increasing your deductible—the amount you pay out of pocket in the case of a claim—can also decrease your monthly premiums. However, make sure that you choose a deductible amount that you can comfortably afford in the event of an accident or damage.

Another effective strategy is bundling multiple insurance policies, such as home and auto, with the same provider. Many insurers offer discounts for bundling services, which can lead to significant savings.

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Maintaining a clean driving record is crucial. Avoiding infractions and claims can qualify you for lower rates. Additionally, many insurers offer discounts for drivers who complete defensive driving courses which can both improve your driving skills and reduce your premiums.

For newer or more tech-savvy drivers, consider usage-based insurance (UBI) programs. These programs use telematics technology to monitor driving behaviors, such as speed, braking, and time of day driven. Safe driving habits can lead to lower premiums through UBI programs.

Lastly, consider downgrading your insurance coverage on older vehicles that might not require comprehensive or collision coverage. Evaluating the current value of your vehicle can help you decide if full coverage is economically beneficial.

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By implementing these strategies, Canadian drivers can potentially mitigate the sting of rising auto insurance premiums, maintaining affordable coverage without sacrificing the quality of their insurance protection. Always consult directly with a licensed insurance professional to get advice tailored specifically to your circumstances and needs.

Words by: Craig Clowes