Auto insurance: 6 tips to save on your premium

1. Choose a vehicle that costs less to insure

The choice of your motor vehicle is one of the most important factors in calculating your automobile insurance. Insurance companies take into account the risk of theft, sportiness, and safety. Other elements are also considered.

Certain types of vehicles result in a higher premium, including:

• Newer vehicles equipped with automatic detection technologies (camera, sensor)
• SUVs
• Vehicle models considered less safe for their occupants

Others are more popular targets for thieves. Check Infoassurance.ca and the Groupement des assureurs automobiles (GAA) website to find out which vehicles are stolen most often.

You could also consider buying a hybrid or electric vehicle. These vehicles can sometimes qualify you for a discount on your insurance policy.

2. Practise safe driving habits

Your driving record has a direct impact on the cost of your auto insurance. By avoiding distractions behind the wheel and driving safely, you reduce the risk of property damage or claims. In short, you improve your driver profile. A good record can even earn you a “good driver” discount if you haven’t had any insurance claims in recent years.

Some insurers go even further by offering telematics programs. This involves a mobile app or a device connected directly to your vehicle that evaluates your driving habits and may qualify you for additional discounts. This is a good option if you have good driving habits and are comfortable sharing your driving data.

3. Install recognized safety devices

No matter the vehicle, insurers generally offer immediate discounts if you install certain effective anti-theft devices, such as:

• An immobilizer
• An alarm system
• A tracking system
• Window and part etching for your vehicle’s main components

These measures can not only deter thieves but also give you peace of mind. Make sure they’re recognized by your insurance company and added to your auto insurance policy.

4. Check your credit report

Insurers take your credit score into account when setting your auto and home insurance premiums. Errors in your file (more common than you might think!) can end up costing you. Request a free copy of your credit report every year from:

• Equifax: 1-800-465-7166 or online credit request form
• TransUnion: 1-877-713-3393 or online credit request form

If you spot any errors in your file, have them corrected right away! A healthy credit report can work in your favour when it’s time to renegotiate your insurance policy.

5. Shop around and adjust your insurance coverage

Checking out what the insurance market has to offer is a healthy habit. Insurer programs change, and so do your needs. Take stock of your current coverage: liability, collision, comprehensive, and so on. Reassess each one based on your situation. Could some be reduced or increased?

Request quotes for different scenarios to see the impact on your premium. Shop your insurance policy around regularly to get customized coverage that truly fits your needs

A few ways to save on your auto insurance

Review these points before renewing your policy:

• Mention your membership in an association or professional order.
• Adjust your coverage based on your current situation. Do you really need all those endorsements and optional coverages? Talk to your agent or broker.
• Accurately estimate your annual mileage, since it’s a factor in setting your premium: the less you drive, the less you pay.
• Increase your deductible if you have a good tolerance for risk. First, ask yourself whether you can afford to pay a larger share in the event of a claim.
• Check out our tip 10 key takeaways to understand auto insurance.

6. Bundle your insurance policies with the same insurer

Insurers all offer discounts to people who insure multiple assets with them: car, house, cottage, motorcycle, and so on. It also makes managing your policies easier—for example, in the event of a theft involving both your vehicle and your personal belongings.

Indeed, understanding what influences your auto insurance premiums helps you make informed choices, both in the short and long term. By applying these few tips—reviewing your file, comparing options, and adjusting your coverage—you maximize your chances of saving money without compromising your safety.