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The law requires drivers to have auto insurance and although a necessity, auto insurance can be a considerable part of a monthly budget. Shopping for car insurance can be a tedious and frustrating task but it can help cut expenses and is well worth the effort. It may be easier than you think to reduce your auto insurance costs and still comply with provincial legal requirements.

Basic Auto Insurance Coverage

A basic auto insurance policy is a package of six types of coverage each priced separately.

  • Collision coverage pays to repair the vehicle when an accident occurs with another car.
  • Comprehensive coverage pays to repair the vehicle or reimburse loss that occurs due to something other than a collision with another car.
  • Property damage coverage pays for damage caused to someone else’s car or property, such as a mailbox, fence, or building.
  • Bodily injury liability coverage pays for injuries caused by the insured to someone else.
  • Medical payments or personal injury protection (PIP) coverage pays for any injuries that the driver or the passengers of the vehicle have due to an accident.
  • Uninsured and underinsured motorist coverage pays when there is an accident with a driver who doesn’t have auto insurance.

How to Save Money on Car Insurance



Keep a clean driving record and good credit score. Insurers use risk assessment to determine your rates and your driving record and credit score help to establish those rates.

Do your homework. Know what the mandatory coverage in the province is and assess what coverage is needed and affordable above and beyond the minimum required by law.

Consider where the discounts are. Many insurers offer discounts to clubs, leagues, and associations. Check the company where you work or for student or elderly discounts. Discounts are available for safety features in your car or completing a driver’s training course. Military service can also get a discount. Most insurance companies provide discounts and waive deductibles and fees if you bundle policies together like home, life, and auto.

Increase your deductible. One sure way to lower your premium is to increase your deductible. But the risk with a higher deductible is that if there is a car accident, you’ll have to pay more. So only raise the deductible if you have enough cash to cover it if you ever needed to make a claim.

Shop around and shop regularly. Even once a year when your policy is up for renewal shop around and compare quotes. Check online for quote providers that allow you to get multiple quotes from the top companies at the same time.

You can also take advantage of low mileage discounts. Be aware of where you live. If you are considering a move look into the insurance rates of that area and/or province. Rates can change drastically from one area to another, once again, depending on each insurance companies risk assessment.

About the Author: Robert Davis

He is an insurance content professional with vast knowledge and a special aptitude and interest in imparting insurance education. He has authored many articles on insurance.

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