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4 auto insurance benefits worth switching insurers for

Posted on Oct. 12, 2017

No matter where you live, you always want to get a better deal. On everything. And car insurance is no exception. Whether you live in Quebec, where rates are relatively cheap, or in Ontario, which has the most expensive auto insurance rates in Canada, it’s always worth it to stretch your insurance coverage as far as it will go.

To help offset the cost of auto insurance there are several benefits, in the form of both discounts and services, that you can take advantage of. Here are four benefits to keep an eye out for.

Ticket/accident forgiveness

Ticket forgiveness is a benefit that many insurers offer. The forgiveness may be added onto your policy for an extra premium, so it might come at a small cost. But, it can save you in the long run if you find yourself with a speeding ticket or driving infraction. Tickets have a tendency to send your insurance premiums skyrocketing, so if you like to drive a little too fast on the back roads, or have a habit of only coming to a rolling stop at stop signs, ticket forgiveness will be extremely beneficial to you.

Going above and beyond ticket forgiveness, some providers even offer accident forgiveness. Again, much like the ticket forgiveness, there may a premium cost involved with accident forgiveness, but this added coverage protects your insurance from substantially increasing in the event of an at fault accident.

Loyalty/clean driving discount

A benefit that some providers offer is a loyalty incentive. If you give the same insurer your business for years, especially if you have your policy set to auto renew or you bundle multiple policies together, they will reward you with discounts on your premiums. Many providers who offer loyalty benefits do so on an escalating scale of years. For example, you may get a discount after three years, then five years, then 10 years, etc.

Some providers also offer discounts to policyholders with clean driving records. If you are a driver that has been with the same insurer for years, and remain claim and infraction free, you can reap the benefit of discounts on your premiums. As with the loyalty benefits, many providers calculate it based on escalating scale of years of clean driving, reviewed at the time of your renewal. The longer you maintain a clean driving record, the higher the discount.

Multi-vehicle/policy bundle

Bundling your policies, whether it’s multiple vehicles or home and auto with one insurer, can lead to discounts on both/all policies. Nearly all insurers offer this discount in one form or another, but the amount saved by the client differs from provider to provider. A fairly standard model has the client paying 90% for two policies instead of 100% for one policy.

Download a driving app

More and more auto insurance providers are beginning to offer their clients the option of installing a mobile app in exchange for a discount. Some offer the discount for signing up, while others use the app to collect data on your driving habits – how quickly you accelerate, how quickly you stop – and then determine the extent of your savings. To encourage clients to download their apps, most providers guarantee that poor driving habits tracked by the app will not cause premiums to increase.  

If you’re not sure whether or not you are eligible for any of these benefits, the best practice is to ask your insurance broker. If your current insurer isn’t offering you ways to save, it may be time to shop around for a new auto insurance provider.

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