8 tips to lower your car insurance premium
1. Review and update your policy regularly
Have your circumstances changed? Maybe the kids have left home. Or perhaps you no longer travel for work. If you haven’t updated your policy recently, you could be paying for coverage you no longer need.
Take a few minutes to call your insurance provider and make sure your policy reflects your reality.
2. Drive safely
It goes without saying that being a safe driver is the best way to avoid an accident. If you drive carefully and have no recent claims, you’ll save on your insurance.
Safe driving is about more than sticking to the speed limit. When you’re behind the wheel, you need to be alert all the time. If you use your phone when you drive, you’re putting your safety and other people’s at risk.
Distractions like texting are a major cause of car accidents. So, it’s no surprise that police across Canada are cracking down. You could find yourself with a traffic violation and demerit points on your licence—and that means you’ll face higher insurance premiums.
Penalties for distracted driving vary by province. Visit the Insurance Bureau of Canada’s distracted driving page to find out more. And if you’re still not convinced, watch their distracted driving video.
3. Sign up for a usage-based driving program
When you sign up for a usage-based driving program like the Desjardins Insurance Ajusto® program, you could get an additional discount on your auto insurance premium for having good driving habits. What’s more, the Ajusto program will never increase your premium—it will only ever lower it.
4. Insure all your vehicles with the same company
When you insure all your vehicles with the same company, you’ll often get savings like multi-vehicle discounts.
5. Bundle your home and auto insurance
If you buy your car and home insurance from the same provider, you can save on your premium.
6. Choose a vehicle that is less likely to be stolen
When you’re shopping for a car, you probably factor in things like gas mileage on top of the sticker price. But don’t forget that the cost of insurance can also vary from one model to the next.
A big reason for these differences is that some models are more popular with thieves. Visit the Insurance Bureau of Canada website for a list of the top-10 stolen cars.
Once you’ve narrowed down your choices, get insurance quotes for the models you’re thinking about. You can even get quotes online to quickly compare insurance premiums and see which one will be cheaper to insure.
If you’re insured with us, visit our Online Services to get a quote.
7. Increase your deductibles
The principle is simple: the higher your deductible, the lower your premium. Remember, your deductible is the amount you agree to pay in the event of a claim, so you want to make sure you’d be comfortable paying that amount in case of an accident.
Changing your deductible could also affect what you’re able to claim on your insurance. For example, if you increase your deductible from $500 to $1,000, smaller claims may no longer apply.
Let’s say someone steals your cellphone from your car. A new phone will likely cost less than the $1,000 deductible, so you probably won’t make an insurance claim. Be sure to read through your insurance policy to understand all the details.
8. Adjust your coverage on older vehicles
If your car is more than 10 years old, it may not be worth paying for all the bells and whistles on your insurance policy. You could reduce your coverage to save on your premium.
For instance, you could insure your car with just the mandatory liability coverage, which covers damage or injury to others. Just bear in mind that you’ll have to pay the full cost of repairs to your car if, for example, you have an at-fault accident or your car is vandalized.
Before making a decision, talk it over with your insurance provider so you fully understand what would happen if you had a car accident.
The information and advice on this page are provided for informational purposes only. Desjardins Insurance shall not be liable for any damages arising from any reliance upon such information and advice.
Certain conditions, limitations and exclusions may apply.
Ajusto is underwritten by Desjardins Insurance which refers to Desjardins General Insurance Inc. in Quebec and to Certas Direct Insurance Company in Ontario.
® Ajusto is a registered trademark of Desjardins General Insurance Inc., used with permission by Certas Direct Insurance Company.
The discount does not apply to certain endorsements and additional coverages Subject to the Terms and Conditions of the Ajusto Program in effect on the date of your enrollment.
Ajusto is only available in Ontario and Quebec.