You just got home and sorted your mails. Then you see that your insurance company sent you your renewal documents for your auto insurance. Anxiety kicks in – did my insurance premium go down this year? Will I finally be able to save money on my monthly premium and put the extra savings towards my RRSP? Or will I be able to buy that nice piece of furniture that I saw in the mall yesterday?
It then got me thinking? What did I do in the past year that would affect my auto insurance? Here are some factors affecting your auto insurance premium:
1. Driving History
Accidents affect your insurance premiums. It stays in your insurance record for at least 6 years. Tickets also affect insurance premiums. Minor convictions like speeding tickets, traffic light violations, improper turns, etc. can easily increase your auto insurance premium. These stay in your insurance record for at least 3 years. So the next time you have the urge to step on the accelerator because you’re late for something, think twice.
2. Age of Drivers
When a driver turns 25 years old, most of the insurance companies adjust the premiums. Drivers less than 25 years old usually are paying more. Those who have been driving for more than 5 years also have better auto insurance premium.
3. Insurance History
The number of years insured also has an impact on your auto insurance premium. Whether you are insured under you’re parents insurance or on your own, it can help improve your premium.
4. Type of vehicle
If you have a newer vehicle, the replacement cost is higher which means the physical damage coverage of your vehicle is also more expensive. You will also need more coverage on a newer vehicle especially when its financed or leased.
5. Type of Coverage
An auto insurance policy will full physical coverage like Collision and Comprehensive is more expensive than if you only have the Basic Liability Coverage. Discuss your auto insurance policy with your insurance broker annually to ensure that you have the best insurance coverage.
6. Use of vehicle
How the vehicle is being used – for business, commute or pleasure also impacts your auto insurance premium. Your kilometers driven may also affect your insurance premium.
7. Additional Discounts
Bundling your auto and home insurance can give you discounts from 5% onwards. Also, putting all your vehicles in one insurance company can earn you multi-vehicle discounts up to 15%.
8. Always shop around for better deals
Every year on renewal, make it a point to shop around for better insurance deals. There may be other insurance companies out there who can give you a better premium with the same coverage or more coverage for lesser premium.
Insurance companies send the renewal policy papers usually a month or more than a month before the actual renewal date. Be sure to review your auto insurance policy with your broker. Also, it doesn’t hurt to shop around and see if you can get cheap auto insurance with the coverage that you need. Click here and find if you can get cheap auto insurance.