You know, there is no sugar coating it, insurance can be expensive! As someone in the industry, I hear this type of comment every day. I totally sympathize with people. Not only are you paying or insurance but since last July (2016) you are paying a retail sales tax of 15% (not on automobile insurance as of April 2019) as well. With that said, most of agree that regardless, we have to insurance on our automobiles and property. It could be catastrophic if we did not.
Automobile insurance seems to be one of the big sticking points with most consumers. It seems to go up in price every year. So what can be done to keep the price down:
- Multi-Policy Discounts: Ask your Broker if there is a discount for combining your auto and home (perhaps other policies). Insurers want to have all your policies under the one roof. From their view point there is less administration, they may even issue combined policies. From your view point you know who to deal with there is no head scratching and less chance of their being a gap in your insurance.
- Multi-Vehicle Discounts. Similar to above, having all you cars on the one policies typically earns a discount from your insurer. The Caveat here is, if you have a driver who has a poor driving history it could jack you premium. In this case it would be best to ask your broker about the savings of splitting the driver off to their own policy.
- Pay in full. Insurers typically charge a finance charge for you to pay monthly. While it is nominal, if you can afford it you can save that finance charge by paying in full.
- Choose a Higher deductible. Typically if you carry All Perils, Collision, Comprehensive, or Specified Perils you have a deductible. What I typically ask my friends, how much are you willing to self-insure. What dollar amount would you require, before you file a claim? If you would not put claim through for less than $1000, then consider whether you would happy with that as your deductible. A higher deductible will lower your premium.
- Know the Value of your Car if were to be wrote off. Then ask your self do you need to carry collision coverage? There are pros and cons of cancelling collision coverage. You save on your insurance. But if there is an accident and the car is wrote off or damaged you are taking the money out of your pocket. Like changing your deductible this much like self-insuring and should be considered carefully.
- Know your Car. Some Cars cost more to insure than others. Whether it’s the repair/replacement cost, the rate of theft etc.
- Ask your insurer about discounts for Anti-theft devices or Automatic Emergency Braking Systems in your automobile.
- While it is not here in Newfoundland and Labrador, usage-based insurance or telematics is something to consider when it comes. There can be discounts for good drivers. Essentially telematics (or UBI) will record how you drive. Then give you and your insurance company a report to help you improve on bad habits. Right now in Canada, telematics can only be used to give you a discount.
- In the same train of thought, when you have inexperienced operators on your insurance, consider a mobile app to rate and record their driving. It could be a good way to see what they are doing, and provide feedback. Getting those inexperienced drivers to develop good driving habits, sooner rather than later, can pay off in the long run. Perhaps even consider the app for yourself to see how you rate and where you can improve.
So What Should I Do?
Obviously I need to add a sales pitch. At Crosbie Job we have protected the residents and businesses of Newfoundland & Labrador since 1984. We know the area. We know the residents. We know how to protect you. It is time to put our expertise to the test. Don’t delay, go ahead contact one of our professionals, so that we can forge a protective shield for you. We’ve Got You Covered.
Don’t waste a moment. Please feel to contact us for a quote. We are here for you.
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