Having car insurance in Canada is an absolutely necessary if you own a vehicle. Based on the cost of accidents, theft and other automobile related losses, insurance provides drivers with a safety-net in case of an accident on the road. However, there is a price attached to it. The average Canadian is paying roughly $1,000 annually on car insurance, and if you’re already on a tight budget, this can quickly accumulate.
If you’re interested in lowering your car insurance rate, consider these three tips:
- Credit History
Your credit history is an integral part of your finances, and insurers look at an applicant’s credit score to determine how liable they might be. A low credit score and poor history can affect the rate that you’re quoted, so it’s important to make sure that your credit report is up-to-date and clear of any mistakes.
Before inquiring about car insurance, check your financial statements to make sure that your information is accurate. An established credit history that shows you pay your bills on time and can manage accounts responsibly means you’ll be paying lower insurance costs.
- Driving Record
Things like parking and speeding tickets, demerit points and multiple accidents on your driving record can negatively impact how an insurer calculates your coverage. Multiple driving violations could increase your rates, which could mean that you’ll be spending more compared to someone with a clean driving record. How you drive has a huge say on how much your car insurance will be, so not only is it important to keep this in mind when you’re shopping for quotes, but it also means that you must adhere to the law if you want to prevent a raise in price.
Considering different types of coverages, selecting a package including the exact coverage that you need to stay safe, while making sure that you’re not overpaying on fees that you don’t need, requires research. Full package insurance, which constitutes everything from collision coverage to property damage, could be an unnecessary expense if you know that you’re a safe driver.
Usually, the most basic of insurance policies will be enough protection on the road. However, it’s always a good idea to compare quotes online and talk to your car insurance company to see what they suggest too.
Your financial history, age and gender, and the amount and type of coverage that you’re planning on purchasing can influence how much you’re paying to be insured on the road. When you are shopping for car insurance, watch for discounts, and keep these tips in mind if you want to save some money.
As you know now that car insurance is a crucial thing to comprehend, another idea to recognize is financing a suitable car. ‘Financing’ because car loan is the best way to build your credit. Visit Canada Auto Experts or call 1-855-550-5565 to talk to a credit specialist.
- How you can benefit from our dealership connections
- Benefits of having an expert help you shop for a vehicle you can afford
- Avoid high interest rate and have an expert on your side
- How to negotiate the best deal on a car loan in Canada
- Tips for improving credit scores to qualify for better auto financing rates in Canada