Car Insurance: 5 Things You Should Know

Is your current car insurance policy giving you the protection you need at an affordable price? Here are five helpful hints to keep in mind when buying or renewing a car insurance policy.

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1. It pays to compare car insurance policies-and car insurance providers.

Every car insurance company uses a different set of underwriting criteria, and that means that prices can vary widely for the same amount of coverage. If you have been with the same car insurance company for years, you could be spending hundreds of dollars more than you should. Do yourself a favour and start shopping around today-you may be surprised how much you can save. 

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2. Your car insurance deductible matters.

Many drivers make a big mistake when buying car insurance. If you automatically select the lowest possible deductible, you could be paying hundreds more in premiums. Raising your deductible could substantially trim the cost of car insurance, and you can use the money you save to fund any repairs if you do get into an accident.

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3. You may not need collision coverage.

If your car is brand new, you probably need full coverage, but if it's an older vintage, collision coverage could be a waste of money. The most the insurance company will pay is the value of your car, even if your ride is considered a total loss. Compare the cost of premiums with and without collision coverage and make your decision accordingly.

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4. Minimum car insurance coverage may not be enough.

Your province requires a minimum amount of car insurance coverage, but that may not be enough to protect you in the event of an accident. (In fact, there are plenty of cars on the road that cost several times the amount of the minimum insurance coverage required by each province.) Consider the minimum just that: A bare minimum.

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5. You could save money on car insurance by changing how you pay.

Some insurance companies offer substantial discounts for having your premium deducted from a chequing account or charged to a credit card. These automatic payments can also make life more convenient and eliminate the risk of a missed payment and a harmful lapse in coverage. Check with your insurance agent or search the insurer's website to see if you qualify for a discount based on your payment options. 

Want to lower your car insurance premium? Here are five ways to save big without sacrificing your coverage!

Check out our car buying guide!