How to Save on Insurance in Canada
People across Canada constantly look for ways to reduce their regular expenses and save some of their hard-earned income. This is particularly true when it comes to necessary expenses, like insurance.
Although various forms of insurance, like car and home insurance, are incredibly beneficial, we know that they can be quite pricey.
Thankfully, insurance doesn’t have to be expensive. There are several ways to save on insurance in Canada; you just have to do some research.
START A QUOTEContinue reading if you’d like to learn how you can save money on car and home insurance in Canada.
How to save on car insurance in Canada
Car insurance is infamously expensive in several Canadian provinces, especially Ontario. Because of this, many drivers feel like there is nothing they can do to lower their rates.
Thankfully, this isn’t the case; here are three simple things that you can do if you want to learn how to save money on car insurance in Canada:
Tip #1 — Bundle your insurance policies with the same provider
Bundling your policies is an efficient and effective way to save on insurance in Canada.
Many insurance providers offer discount insurance rates to policyholders that invest in more than one type of coverage (for example, home and auto insurance). The discounts you receive depends on the types of policies you bundle, but in some cases, the insurance discounts can be as high as 25%!
With this in mind, it’s clear why so many policyholders choose to bundle multiple policies with the same provider.
Tip #2 — Base your insurance policy around your driving habits
There are several perks, discounts and optional coverages that you can take advantage of if you want to save on insurance in Canada.
For instance, if you only drive a few thousand kilometres each year, you may want to consider investing in pay-as-you-go insurance. Pay-as-you-go insurance uses technology to collect information about drivers and their driving habits, including their average driving distance.
As a rule of thumb, the few kilometers you drive, the lower your auto insurance premium is.
That being said, usage-based insurance is just the tip of the “savings iceberg”.
If you’re a good driver with a pristine insurance history, you can chat with your insurance advisor about various discounts and perks, like a claim-free discount or accident forgiveness insurance. These types of discounts and perks are meant to reward drivers for their driving skills and habits.
Tip #3 — Improve your credit score
Although this tip doesn’t apply in all Canadian provinces and territories, many insurance providers in western Canada and the Maritimes do use your credit score as a factor to determine premiums.
Generally, the lower your credit score, the higher your premiums will be. Some insurance companies feel that there is a correlation between a low credit score and drivers with poor driving habits.
Thankfully, if you have a high credit score, you can use this to your advantage. Be sure to let your insurance advisor know that you have a strong credit score, as it could lead to lower insurance premiums in the future.
How to save money on home insurance in Canada
If you feel like you’re paying too much for home insurance, you’re not alone. Thankfully, there are several things that you can do to save on insurance. Some useful tips include:
Tip #1 — Buy a new home
If your home is currently less than ten years old, make sure that your home insurance provider is aware. Policyholders may be able to qualify for significant savings if they own a home that is less than ten years old. This is something that home buyers should keep in mind during the home buying process.
Tip #2 — Pay your premium annually, not monthly
If possible, we highly suggest that you pay for your home insurance annually. Although this may feel like a large financial commitment, paying your insurance premium annually can be highly beneficial.
Most home insurance providers will give you a generous discount if you pay your premium all at once. Home insurance providers do this because they are no longer at risk of dealing with late or missing payments.
On a similar note, if paying your premium annually isn’t feasible, ensure that you make your monthly payments on time. If there is one missed one payment, the policy will be canceled and future policy premiums will be significantly higher as they will include a cancellation surcharge for up to 3 years.
Tip #3 — Increase your home insurance deductible
Increasing your home insurance deductible is a simple, passive way to reduce your home insurance premium.
As a reminder, your home insurance deductible is the predetermined amount that you need to pay when you make a home insurance claim.
History and data have shown us that policyholders with a lower deductible are more likely to make a home insurance claim due to the fact that there is less of a financial barrier. Because of this, policyholders with low home insurance deductibles tend to have higher premiums.
On the other hand, data has shown us that policyholders with higher deductibles are less likely to make a home insurance claim, which helps lower their risk level. As a result, these homeowners generally pay less for coverage than policyholders with lower insurance deductibles.
Save on insurance with your Surex insurance advisor
Last but certainly not least, if you want to save on insurance in Canada, be sure to shop around with a reputable brokerage, like Surex. For those that don’t know, a brokerage is a group of insurance professionals (we like to call them advisors) that helps connect everyday policyholders with reputable insurance companies.
Our team at Surex works with over ten of Canada’s top-rated insurance companies, including Aviva. Whether you prefer to compare insurance quotes online or over the phone, the Surex team has you covered!
Contact a Surex insurance advisor today to receive a collection of high-quality quotes from Canada’s top-rated insurance providers in ten minutes or less!
