Whether you’re a student, a young worker, or simply a new driver, insuring your first car can mean high premiums. Your fears are justified, as inexperience on the road is often the main cause. But there are some ways to save on your auto insurance. Here we provide no fewer than 15 tips that could very well help you lower your monthly premiums. Ready? Let’s go!
1 – Choose a less expensive car
It’s a simple rule: the more expensive your vehicle is, the higher your insurance premium will be. What’s more, if the value of your car is low enough and you don’t have a car loan, you might only need third party liability coverage, making your premiums a lot lower.
2 – Choose a vehicle that is less expensive to repair
Be well informed before choosing a vehicle model, simply because a car that is expensive to repair will cost more to insure. The benefits paid by the insurer in the event of a claim are then higher. Get all the facts before you choose a model—you’ll avoid a few unpleasant visits to the garage.
3 – Avoid theft magnets
The risk of theft is a factor that increases the cost of your insurance. For that reason, we advise you to avoid cars that attract a lot of attention, like convertibles, sports cars, luxury or collectible cars, modified or one-of-a-kind cars, etc.
4 – Show your love
Do you live with your spouse? Tell your insurer. It will consider your marital status to reduce the premium. Statistically, the number of claims for married or common-law partners is lower. Take advantage of it!
5 – Keep your driving record clean
Your insurer will automatically ask you for the information found in your driving record with the SAAQ. Driving violations and driver’s licence revocations and suspensions are taken into account when setting the premium. So make sure you adopt good driving habits—and keep them up!
6 – Promote your credit score
To get the best possible offer for your insurance policies, let your insurer get your credit score from credit reporting agencies. If your record is good, it will prove that you are responsible and will be able to pay your monthly premiums on time. This is a prerequisite for most insurance companies.
7 – Show that you’re a good driver
Insurers now offer telematics solutions that may well benefit you. How they work is very simple: an app on your cellphone analyzes your driving in real time (speed, acceleration and braking, distances, routes, etc.). In the end, you enjoy a discount that reflects your good habits. It’s a convenient way to prove you’re a good driver despite your inexperience.
8 – Bundle your insurance
Did you know that you can reduce your premiums if you bundle your auto insurance with other coverage, e.g., insurance for your home, residence, or even your other vehicles (motorcycle, ATV, snowmobile, etc.)? Think about it when you shop!
9 – Get a good anti-theft device
A good system (anti-theft device, engine immobilizer, or satellite tracking) installed on your car can reduce your insurance premium, especially if you have theft coverage. Ask your representative what benefits you can get.
10 – Take advantage of your student status
If you’re studying at a CEGEP or university, you may be able to get a discount on your auto insurance. Some restrictions usually apply, so be sure to talk to your insurer to find out what they can offer you
11 – Drive carefully
If you rack up enough accidents, your insurance premium may increase. Insurers have access to the Fichier central des sinistres automobiles. This is a database that tracks any loss a policyholder has been involved in, whether or not there has been a claim.
12 – Keep your mileage low
This is obvious but so important: limiting your trips or reducing the distances covered will lower the cost of your auto insurance. Be aware that the use of your vehicle, mileage to get to work, annual mileage, etc. are also factors that affect your premium.
13 – Take your parents’ car
Why don’t you start by borrowing your parents’ car first? You would then become an “occasional driver” on their insurance policy. The amount of the premium payable may be lower than if you insure your own car. Talk to them about it!
14 – Increase your deductible
The deductible, which is listed in all insurance policies, is the maximum amount you will have to pay in the event of a claim. The higher your deductible, the lower your insurance premium. But think carefully before increasing the deductible—you’ll need to be able to cover it in the event of a claim.
15 – Limit your coverage
When you insure your car, you must start with the basic coverage: civil liability insurance. It covers:
- Property damage to your vehicle in the event of a collision in Québec for which you are not responsible
- Bodily injury and property damage for which you are responsible that occur outside Québec
- Property damage caused to others for which you are responsible
If you own a used or low-value car and don’t have a car loan, this insurance might be sufficient. It will cost you much less than comprehensive coverage for damage to your vehicle.
Important: If you choose to limit your coverage to civil liability, you could lose your car as a result of an accident, so you are liable. The question you need to ask yourself is: “Is my car worth the cost?”
These are our top 15 tips for reducing your monthly insurance premiums. For all these solutions, you should keep two main things in mind when you shop:
- The first is to always compare coverages. A really low price does not necessarily mean you’ve found the best insurance in town. Be vigilant and read your contract carefully before signing it.
- The second—and not least—is to choose an insurer you can trust. Get a feel for the damage insurance agent’s attitude and the credibility of the company they work for.
Lastly, know that Promutuel Insurance offers many auto insurance solutions for young drivers, including tailored products, student discounts, customized offers, and more. Contact one of our damage insurance agents today. They can save you money while guaranteeing your peace of mind. Smiles are on us!