Auto Insurance Hacks: Maximize Coverage, Minimize Costs

While car insurance costs are dependent on a variety of factors, policyholders usually strive to maximize their coverage and pay less, and why shouldn’t they? With insurance premiums, however, it can be hard to find the best bang for your buck, as the determination of premium cost is based on risk. Several factors can affect risk calculation, including region, driving history, make and model of vehicles, and more. And while you can’t control things like where you live (unless you want to move purely for cheaper car insurance… bold move), you can absolutely influence other areas that impact your rates. That’s where these handy hacks come in.

Before you dive into this article, it's best to be familiar with basic insurance terminology. We break it down the Delightfully Simple way in our article, Car Insurance 101: 10 Industry Terms You Need to Know. So, check that one out to get in the lingo of what’s what, no insurance jargon.

Whether you’re a seasoned driver or a newly licensed road warrior, these tips are for anyone looking to keep more dollars in their pocket without skimping on coverage. So, if there are factors that go into the premium rates you pay that can’t be changed, what can you do to lower your costs? Here are some tips from us at Sandbox Mutual Insurance for how you can save when it comes to car insurance.

WINDOW SHOP AROUND

Compare rates and prices that are specific to your auto needs. Insurance isn’t a one-size-fits-all approach, and we’ve made it our goal to make a policy for you that covers the specific needs of your ride. This is especially crucial for snowmobile, ATV, and motorcycle insurance coverage in Saskatchewan and classic car in Saskatchewan and Manitoba. Make, model, it all matters to determine the price of your policy. Shopping around doesn’t mean you’re disloyal; it means you’re smart. Rates can vary between providers, and even small savings can add up over time. That’s why chatting with your insurance broker is the way to go because they can provide you with quotes from multiple insurance carriers to find you the best rate and coverage.

POSSIBLE DISCOUNTED RATES FOR SAFE DRIVING

By being a safe driver, you pose a lower risk than those with an extensive driving record. Often, car insurance companies across Canada will offer discounted rates to those with clean driving records. Insurance Business reports that these discounts can be up to 20%. We get it, not all collisions are avoidable, but there are measures you can put in place to prevent them from happening. Check out our helpful driving resources (or share them with that accident-prone friend):

LUXURY VEHICLES COME WITH LUXURY RATES

Sometimes, “treat yourself” turns into “insure yourself more.” Being the proud owner of a new luxury car is fantastic, but it may come with high risks due to the increased likelihood of theft and damage. Be sure to consider the higher quote and costs that come along with these vehicles prior to your purchase or protect your new car with Sandbox’s Replacement Cost/New Vehicle Protection Insurance.

Before going all-in on your dream wheels, factor in insurance premiums because you might find that a slightly less flashy car is just as fun.

PAYMENT FREQUENCY

Oftentimes, choosing to pay once annually for insurance versus every month can not only save time and energy but a few extra bucks, too, on the interest and other associated fees. Make the switch to annual payments, your future self will thank you!

Making a one-time annual payment for car insurance

DEDUCTIBLE DECISIONS

Changing your deductible can also have an impact on saving on insurance each year. How does it work? The higher your deductible, the lower the premium that’s associated with that comprehensive and collision coverage. If you want to pay less year-over-year with full coverage car insurance, opt for a higher deductible.

MULTI-VEHICLE OR FLEET DISCOUNTS

Run a business with multiple vehicles? You may qualify for a fleet discount on a commercial vehicle insurance policy. Bundling them together under one policy can help keep things organized and save you money at the same time. Win-win!

CLASSIC CAR, NOT FOR POINT A TO POINT B

Owning a classic car is like having a piece of history in your garage. And thankfully, classic car insurance often reflects that! Because these vehicles are usually driven less frequently and maintained with extra care, premiums can be lower than for your personal auto insurance. Make sure to get specialized coverage that considers the car’s value and uniqueness.

Auto insurance premiums may be unavoidable, but they protect your vehicle and anything else that moves from the elements and accidents that you can’t control (and some that you can). The key takeaway? You don’t have to sacrifice coverage to save a few bucks. Smart choices, safe driving, and understanding your options can go a long way toward a more affordable auto insurance experience.

Get the scoop on our auto insurance coverage in Manitoba and Saskatchewan.

Please note that the information in this article may not accurately reflect your insurance policy from Sandbox Mutual Insurance or another insurance company. Please refer to your policy or talk to your broker about your specific coverages.