THE INTERACTIVE BLOG

In tough economic times, everyone is looking for ways to cut costs. It makes sense to review all household expenses, including car insurance. There are some ways a person or a family can potentially save dollars on what they pay for car insurance.

Review Car Insurance Policy

Many times people just let their car insurance policies automatically renew. If a person has had the same insurance policy for a few years they should realize that the car has gotten older each year and if their insurance agent is not making adjustments to reflect the age of the car, they should start comparing car insurance quotes. It is very easy to do online. By answering a few basic questions quotes can be obtained from major car insurers in a matter of minutes. Even if a person is happy with their current automobile insurer they should use these quotes as leverage to get lower rates, especially if they have not filed any claims with the insurer and have a clean driving record.

Raise Deductibles

One quick way to lower car insurance costs is to raise the deductibles. The deductible is the amount the person who is insured has to pay before the insurance company pays their portion of any bills from accidents. The higher the deductible, the lower the insurance rate. A person that has had multiple accidents may not benefit from this tactic, but a safe driver can take the risk and raise their deductible to save money.

Multiple Insurance Lines

It does not make sense to have house, car or any other recreational vehicle insured by different companies. By bundling the properties to be insured with one company the person can get a multiple rate discount. This can save a significant amount of money on insurance.

Credit Rating

Many automobile insurers are now reviewing credit ratings before quoting rates. Paying bills on time and keeping a good credit score can help lower car insurance rates.

Drive Safely

A person with no accidents and no tickets will get a better insurance rate than a person who drives recklessly. It makes sense to be a safe and sensible driver and keep the driving record as clean as possible. Several car insurance companies have a first accident forgiveness policy for people who have a very clean driving record. That means that the insurer will not increase rates for an accident, but only applies in instances where no claims have been filed previously.

How Car Insurance Rates are Determined

Insurance companies have several variables that will influence the rates that a person pays for car insurance. Women generally pay less for car insurance since statistics show that they have fewer accidents and drive safely. A person’s marital status will also influence rates; married people pay less for insurance than single people.

Where a person lives is another factor for car insurance rates. City dwellers will pay more than suburban dwellers. This has to do with the density, or number of cars in cities versus more rural areas. Zip codes that have higher accidents, crime rates, car thefts and car repair rates will result in higher insurance premiums. People who like living in these areas should just be aware that they will pay more for car insurance for the convenience of city living.

The person that works behind a desk all day will pay less for car insurance than the sales person. This is due to the number of miles driven each day. The more a person drives, the higher the likelihood of being involved in an accident. If employed in a job that requires daily use of a personal car, make sure the company reimburses for the miles driven. This money should be used to pay for the increased car insurance as well as maintenance of the car.

Teen Drivers

Most teen-agers can’t wait to get their drivers license. Most parents dread the increase a teen will add to their automobile insurance. There are ways to keep the rates for teen drivers lower.

•Good grades – many insurers will give discounts if the teen gets good grades in school. Discounts for maintaining a B average or above can be significant.

•Driver safety programs – if the teen takes a driver safety program, watches certain videos or participates in other programs they can often get a discount on insurance. Ask the insurer if there are any programs available and how to qualify.

•College – inform the insurance company if a child goes away to college and does not take the car. Usually premiums are lowered but the child will still be covered when they are home on breaks or the summer.

Most importantly, ask the car insurance company for discounts. There may be defensive driving classes or other ways a person can qualify for discounts on car insurance. Before purchasing an expensive car, consider the cost of insuring the vehicle.

Go online to Kanetix.ca today to compare quotes to see which provider offers the cheapest rates for car insurance Ontario for your particular automobile. Kanetix Auto Insurance uses its innovative quoting engine to compare the rates offered by over 40 insurance providers in just a matter of minutes. Switching providers can often times save you several hundred dollars every year.