Many of the major insurers in Quebec have announced that there are rate increases expected for car insurance in 2018. The impact of these rate increases began in the spring and will continue into the rest of the year, so finding a way to lower your car insurance cost now is important.
As brokers, we work to help our clients take a strategic approach to their insurance coverages and pricing. Our goal is always to give good coverages and save money on car insurance at the same time.
Below are some tips to help you lower the price of your car insurance when there are insurance company rate hikes.
5 Tips to Help You Lower Your Car Insurance Costs
Lock in Good Rates Now
As soon as you find a really good insurance price, lock it in. Insurance price quotes are only good for 30 days, and we know that the rates are increasing. In addition, when rates increase it is a sign that the auto insurance pricing hasn’t been profitable in the past year. Therefore on top of increasing rates, insurance companies sometimes start to cut their pricing flexibility, which means fewer chances for discounts.
Consider a 2-Year Policy, or Buy a Policy with a 2-Year Guarantee
If you can, take a 2-year insurance policy or get a 2-year rate guarantee to take advantage of it. Many insurance companies offer ways to lock in good rates. As brokers, we check with several companies for you. There are many that we work with who will either offer a 2-year policy, or a 2-year rate guarantee.
Two-year policies or 2-year rate guaranteed policies will ensure that you don’t see any price increases for 2 years, even if insurance rates go up, or if you have an accident. It’s the best way to beat rate increases because you lock in the lowest price on your car insurance for 2 years.
Insider Tip: If you have accidents, tickets, or claims and you take a two year policy, sometimes you can avoid being penalized for them if they would disappear during the two year term you locked in. Unlike 1-year policies where the claims or accidents are rated for the current date, a 2-year policy has to rate you for the entire term, so sometimes this works in your favor.
We do our best as brokers to look for these loopholes and help you take advantage of the best rates; this is one thing to consider which could save you a lot.
Combine Your Home Insurance, or Multiple Cars to take advantage of Free Coverage and Discounts
You’ve surely heard about insuring your home, tenant policy or condo with your car insurance in order to save money. It works in a few ways. As brokers, we not only apply discounts for having your home and car together, but we may also be able to negotiate bigger discounts once we have both policies to work with. In addition, we can often remove the charges for certain coverages you would normally pay for because the insurance company gives certain coverages free to loyal clients who insure home and car together.
Sign Up for Telematics Programs or an Insurance Policy with a Good Driver Discount
You may have heard about Good Drivers programs, Telematics discounts, or Usage Based Insurance (UBI). Signing up for this kind of program will give an immediate discount on some of our policies; in addition, once enough data is collected with the app or telematics device, you get more discounts added. There’s no better way to get a price reduction on your insurance cost right away. It starts with 5% with some of the companies we deal with and then can go up to 20% after 6 months. The best news is that even if you aren’t such a super driver, they won’t charge you more, you still get that 5% discount.
Make Sure You Get Membership or Professional Discounts
Did you know that having a bachelor’s degree, working for an organization with more than 5 employees, or even being a member of FADOQ could save you a lot of money on your policy? Ask us about the different discounts we can find based on your personal situation. Take advantage of any group or professional discounts that are available.
Although you may have heard of some of these ways to lower your car insurance costs before, these strategies become more important when there are periods where we know the car insurance prices are going up. Some of the tips above can save you 10-30% on your insurance costs.
Can an Insurance Broker Save Money On Your Car Insurance?
Insurance brokers can help you save money on your car insurance because they have the ability to shop with several different insurance companies for you. As brokers, we can also save you time because we use all our resources to search a few companies at once. Once we find our prices, we then negotiate for you to get the best possible conditions, like locking in rates for 2 years, so you don’t have to pay more if you have an accident until the next renewal. We also make sure we ask for discounts on your home and car, so we save money in a few places at once.
Help Getting a Lower Car Insurance Price
Need help figuring out how to save money, or want a personal review of your situation? Give us a call, we’ve been independent brokers based in Westmount, Montreal, and Toronto for close to 100 years. It is our pleasure to help you figure out how to get the most from your insurance while saving money.