Automobile Insurance

#1) Raise your deductible.

Your "deductible" is the amount you pay when you make a claim before your insurance company pays. The disadvantage of raising your deductible is that when you do make a claim, you’ll pay more. The advantage is that your insurance costs yearly go down. Go a number of years saving money without making a claim and your ahead. This tip can be applied to collision and comprehensive sections of your insurance policy.

#2) Drop your collision and/or comprehensive insurance on older autos.

Sometimes it’s just not worth paying for these kinds of insurance- if your car is not worth that much to begin with. That’s because the amount you pay for the deductible plus the amount you pay for the insurance may not be more than the value of the car itself. An auto dealer or certain automotive magazines can help you determine the value of your auto.

#3)Buy a "lower profile" vehicle.

Part of what determines the cost of insurance is the kind of vehicle you drive. Some are favorites for thieves. Some are more expensive to repair. Generally these vehicles will cost more to insure. It pays to do your research before you buy.

#4) Take full advantage of low mileage or distance discount rating—Some insurance companies give discounts to people who drive less than a pre-determined number of miles each year or drive certain distances to and from their place to work.

#5) When you move, consider the cost of insurance

Yes, the cost of insurance varies from place to place, even right here in York Region. Some areas can be considerably higher. Keep your broker informed and this may save you money. The right territory!

#6)Make sure the rating and use of your vehicle is correct.

Many manufacturers offer similar model names for vehicles and insurance costs can vary. Even 2 or 4 doors or the wrong model can effect the cost .

#7)Have your broker check other insurance company discounts

Insurance companies try to reward good risks. That’s the kind of driver they want. A lot of companies offer discounts to drivers who also have other kinds of insurance with them such as their homes. This is called a multi-policy discount. Other discounts available might be - multiple vehicles, anti-theft devices, retirees, drivers education, abstainers from alcohol, age, and distance to university/colleges for students. To name a few. Check with your broker to all that are available---- it will save you money!

1) Have all drivers listed!

Check your policy carefully on each renewal to make sure that all licensed operators of your vehicle are listed and shown on the policy.

For example - The vehicle and insurance is shown in the husbands name yet no where on the policy is the wife’s name even mentioned though she has driven for 20 years accident free. What if another car was bought for her and she has no previous insurance experience to confirm? Under age drivers(25 yrs old) might be another area of concern. People might believe they are saving money by not showing them as operators? But what happens when they do get their own vehicle and can’t provide accident free insurance experience. And they will get their own auto- it’s just a matter of time.

2) NSF Payment Cancellations.

Be responsible on payments for your auto insurance. Cancellations for non payment, non sufficient fund cancellations can be very negative and costly to you. It may even limit what insurance company you can place your insurance with! Be responsible and if a cancellation problem arises deal immediately with your broker to resolve it. Don’t ignore it!

3) Depreciation - what may happen on a claim.

Being prepared and knowledgeable can make a big difference with the results of a auto claim.

For example- If your car tires are stolen and you report a loss under your comprehensive coverage would your tires be replaced at full value. Not likely! Such factors as age, condition, usage, wear and tear come into play. It only makes sense! Your tires might have 20,000 miles on them and yet you would be getting new tires. But how do you protect yourself so the claim is fair for you and the insurance company. A tip- keep the original bill of sale and have written on it the actual mileage of the vehicle at the time of installation by the tire installer!

4) What can I do to keep the cost of insurance down.

Contact your broker and discuss how your use of the vehicle(s) at present is rated and how your insurance company classes are determined. A potential problem could arise at the time of loss if your use is not properly classified. Also, you could be paying extra money by being wrongly rated.