3 Ways To Avoid An Increase In Your Auto Insurance Rates
Nobody wants to pay more than they need to for their car insurance. Still, many Canadians will find an increase in their rates this year when they go to renew their existing policies. And while an increase in rates is sometimes inevitable (such as when the insurance company hikes everybody's rates to account for changing trends), there are still a few steps that policyholders can take to prevent other types of rate increases. (For more information on car insurance, contact Css Insurance Agencies Limited)
Work on Your Credit Score
The average credit score in Canada is around 696, but did you know that your credit score can have an impact on more than just your ability to take out loans? Believe it or not, insurance companies run your credit when you request a policy quote, and they take your credit score into heavy consideration when determining your cost for coverage.
If you have a below-average credit score, your insurance will be more expensive because you'll be seen as a greater risk to the insurance company. On the other hand, if your credit score is on the higher end of the spectrum, you could enjoy lower rates.
Avoid increases in your insurance rates by maintaining or even improving your credit score; after all, doing so is a win-win.
Keep Track of Your Discounts
Another common reason for rate increases is that policyholders lose discounts that they were entitled to when they first purchased their policies. For example, some insurance companies offer a one-time discount to new policyholders that gets removed when it comes time to renew.
Always stay on top of your discounts and make sure you're taking advantage of all the ones that you're eligible for. For example, if you had a discount for having a clean driving record but received a traffic ticket this year, you may very well lose that discount. As a result, you might want to consider taking advantage of another discount (such as paying your policy in full instead of in monthly payments) to make up for it.
Be Careful What You Drive
Finally, understand that the vehicle you can drive can have a huge impact on your rates. When shopping for a new vehicle, keep this in mind. Generally, the faster and sportier the vehicle, the more expensive it is to ensure. So if you've been thinking about trading in your mini-van for a speedy new convertible, make sure you check with your insurance company ahead of time to find out how your new car will affect your rates. From there, you can determine whether or not the added cost is worth the fancy new car--or if you'd be better off choosing a vehicle that's a little more traditional.