Car insurance is a necessity. But the costs involved are usually a pain in the neck. Car insurance costs are no joke in Canada. That is why many go out of their way to try and get cheaper rates. One of the easiest methods people think of is price matching. This is when they show one insurance company the quote presented by another. The goal is to get the more expensive company to lower their rates for the same coverage.
But does this actually work? The truth is, no. Car insurance companies do not typically price match because their rates are based on their own statistics. Using data they collected from their clients, insurance companies estimate the amount they need you to pay so that they can cover you when you make a claim. Each insurance company will have unique data. This is because each company will have different client experiences. As such, Company A will give different rates from Company B.
In order to price match, some companies will change your coverage. Sure, this can mean smaller premiums. However, this can mean losing parts of your coverage. In the end, it will be up to you to decide if it is worth it or not.
Are Insurance Rates Negotiable?
Even if a car insurance company does not price match, that does not mean you have to agree with what they offer. You can definitely negotiate insurance rates. Negotiating rates will help you get more affordable insurance. This will also encourage you to examine your coverage more closely. Doing so will then help you decide what you really need. It will also help you rethink what you can lose. For instance, take a look at your province’s car insurance requirements. Most provinces require liability insurance. Do you really need more than that?
You can then negotiate optional coverage. If your car is old, do you still need a Waiver of Depreciation? Do you need Loss of Use in the event you cannot use your car? Can you live without increased accidental benefits? These aspects of your coverage are definitely worth discussing with your broker.
How Can You Reduce Insurance Premiums?
There are several ways to reduce premiums. One of the best ways to do this is to increase your deductible. The deductible is the amount you pay out-of-pocket if you make a claim. The higher deductible you pay, the lower your premium goes. Of course, nobody wants to pay out-of-pocket, so why offer to do so? This is because you will only pay your deductible when you make a claim. If you are a safe and responsible driver, there is a small chance you will ever need to. On the other hand, you pay for premiums monthly. As such, a higher one-time payment can cost much less than lower payments every month for years.
Driving less can also help you save up on insurance. When you drive less like if you only drive for pleasure, you are on the road less. This lessens your chances of getting in an accident. Lower risks equal lower rates. Factors such as the model of the car you drive and your driving history also play a part in lowering premiums.
How Can You Lower Car Insurance Rates After An Accident?
Getting involved in an accident is a surefire way to hike up your premium. The good news is, this is not always the case. If it is your first claim and you were not at fault, insurance companies may let it pass. They will not increase your premium come renewal time. However, if you have been in accidents too often, some insurance companies will penalize you for it even if you were not at fault. This is because the statistics of you making another claim are higher. If this happens to you, can you still lower your premium? The answer is yes, with some negotiating.
As previously mentioned, taking a look at your coverage will help. Consider if you really need collision coverage if your car is very old. Sometimes it is actually cheaper to just buy a new one. If car accidents happen too often, maybe you need to take driving lessons. Getting a full license in Canada can help you qualify for a discount. Alternatively, if you live in an area with efficient public transit, maybe you can rethink driving all the time. Driving less will not only lower your premium, it will also help keep you safer.
How Can I Get Cheaper Insurance?
In addition to the tips mentioned above, there are more ways to lower your insurance costs. If you have multiple cars, insuring them under one company can qualify you for a discount. You can also consider bundling your life, home, and car insurance coverage. Many insurance companies offer loyalty discounts to customers. Another way is to look at the discounts offered by the company and see which ones you can participate in. For example, do they offer discounts for technology? If they do, consider investing in new safety technologies for your car. This can cost more initially, but in the long-term, you can save more for it.
Many hope that insurance companies price match in order to get cheaper insurance. Unfortunately, most insurance companies do not do this. This is because each company has its own computations for risk factors and the amount they need to cover their clients. However, even without price matching, you can still get lower insurance premiums. By negotiating which parts of your coverage you need and which parts you do not, you can lessen unnecessary spending. You can also reduce your premiums and get cheaper insurance by availing of discounts, driving safer, driving less, and increasing your deductible.
If you have been involved in many accidents, however, you will most likely pay higher premiums. This is because the insurance company now expects that you will keep making more claims. To maintain your premiums, or lower them all together, look at the discounts you can avail of. You can also consider driving less or avoiding using your car completely.