Friday, September 2, 2011

Cheap Car Insurance in Canada

Tips on how to pay less for car insurance in Canada:

Let's face the reality, car insurance in Canada is the most expensive insurance in the world and there are several reasons why it might be but it doesn't have to be that way. The following will give you some tips on how you can pay less for your car insurance premiums.

Higher Deductible = Lower Premiums
One of the easiest ways to save money on car insurance is to have a higher deductible. If you don't know what "deductible" means, in a nutshell, it's the amount of money you are willing to pay, to your insurance supplier, if you get into an accident to cover for your part of the damages. As an example, let's say you get into an accident and the damages are evaluated at $3000.00, if you have a deductible of $250, you will pay the Insurance company that amount and they will pay $2750.00 to the body shop to have your car fixed. It might be tempting to go for a lower deductible but the truth is the lower the deductible the higher your premiums will be. The common deductible for the average person is $250 but if you can increase your deductible to $500 or even to $1000 you will save a lot. To have an exact idea of how much less you would pay, always call your insurance agent as there is no Online solution that can provide an accurate estimate.

Drive Safely - Another way to save on car insurance is to have a clean driver record. The main reason why young drivers pay more for auto insurance is because they are not experienced therefore represent a higher risk to have an accident than older experienced driver. In addition, the gender will influence how much you will pay for car insurance in Canada, actually it's also the same case in the U.S.A. Young women will pay less than young men because, statistically young women drive more safely than young men. It goes without saying that if you drive carelessly and get speeding tickets one after another or get into accidents your insurance premiums will sky rocket, whether you are a man or a woman. In some cases, insurers might refuse to insure you because of that.
Sport car VS Regular - Another tip on how you will save on car insurance cost is whether you will drive a sport car or a regular car. Bigger engines means faster cars which translate to higher risk of having speeding tickets and accidents. If you are tempted to go for that sporty new car you might want to call your insurer first and see how much more it will cost you. Especially if your driver record is not clean you're in for a "bad" surprise. Just to be clear, driving a Sport car doesn't necessarily mean driving a Ferrari it means that most regular cars has a sport version so be advised of that when buying or leasing a new or used car.

Cheap or Luxurious Cars - The total value of your vehicle will also determine the price of your car insurance premium. For example: if you purchase a $50,000 car you will pay more for insurance than a $25,000 car. If you wonder why this might be, the reason is simple; In case of an accident, it will cost more for replacement parts to your insurance supplier if you own the $50k car than the $25K car. In a nutshell, do your due diligence and call for a quote to your insurance agent before committing, the difference in pricing might in thousand's of dollars per year so be careful.

To conclude, Car Insurance in Canada is mandatory whether you own a business or as an individual. As we saw in the above article: gender, age, price and type of vehicle will influence the cost of car insurance. Also, the deductible amount will greatly change the price whether you choose a higher or a lower deductible. Car Insurance might be confusing but it doesn't have to be, always consult with your insurance agent, to get a clear picture of your options.

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