Get The Most Out Of Your Car Insurance And Lower Monthly Rates

By: Stephanie Cooper on October 4, 2013

Every driver in Ontario can agree that auto insurance rates are high.

But why are rates high and what can we do to decrease our rates when looking for a new insurance company?

Insurance is high for anyone who has traffic violations or has been in car accidents.  It's against the law to drive and use a cellphone in Ontario, but everywhere you look people are driving with their phones attached to their faces or glance down into their laps at stoplights.

The Ontario Court of Appeal cracked down hard on two drivers who were caught using their cellphones on the road.  If the law maintains a strict ban on driving with cellphones, drivers without previous cellphone use violations may qualify for a lower insurance rate over the long run.

Since auto insurance is required by law in Ontario, once you know which factors affect your insurance there are a few ways you can try to help lower your costs.

Some factors that affect auto insurance rates:

·         Age and gender

·         Make and model of your car

·         How often you drive your car/distance travelled

·         Personal traffic violations (including cell phone use) and car accidents

Insurance companies look at statistics on theft and safety ratings on all vehicles. If you haven't purchased a car, consider doing some research and get to know the make and models before you buy. Car models that are considered less likely to be stolen or cost little to repair will likely be charged less for car insurance rates.

Also consider that new cars cost more money to insure than older ones, and vehicles classified as sports cars cost more than family vehicles. However, a used car may still charge high insurance rates as insurers consider older vehicles to be less safe on the road than newer cars.  As a result, the tradeoff in insurance may not be worth the money saved on the older model.

Insurance also tends to be higher for drivers under the age of 25, and young male drivers usually pay more than young female drivers. If you're under 25, you can remedy high rates by taking an accredited driver training course, which can qualify you for a significant discount on auto insurance.

Another way to help lower your monthly rate is to maintain a rigorous driving schedule, and share that information with your insurer. Commuters who live in the suburbs but must travel to big cities for work will likely pay higher insurance rates than people who live closer to work. However, if you use public transit or drive your car to catch a train, subway or bus for the commute, mention this to your insurance company and you may knock more dollars off your insurance.

But the best ways you can help yourself when considering a new insurance company is to shop around and ask questions.

When you compare offers from different insurance companies, you will likely receive accurate estimates for coverage. Always remember to ask for available discounts – not every insurance company offers discounts, but there's no harm in asking for the best offer that you can leverage. 

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