Are you looking to buy your first vehicle? If so, congratulations! Even though Canada has a lot of great public transportation options, there’s a lot of value and freedom that comes with having your own car. However, vehicles are expensive, and you’re going to want to save money wherever you can. Here are five car insurance tips for first time buyers looking to save a loonie or two.
That zippy sports car may look like a great deal, but you might change your mind once you’ve gathered some insurance quotes. Before you buy a car, grab an online insurance quote to get a better idea of what your insurance rates could be with various cars. It’s better to find out that your insurance will be a couple of hundred dollars a month before you buy a new car rather than after you’ve signed all the paperwork.
Depending on the type of car insurance you purchase, your rates could fluctuate dramatically based on the value of your vehicle. By purchasing a used car, you not only lower your cost of ownership, but you can save on car insurance too. If the worst should happen and your vehicle is destroyed, your insurance company could be on the hook for paying out the value of the car. Lower value means lower payment and that potential cost savings is passed onto you.
Regardless of the type of car or its value, a good car insurance tip for first time buyers is to keep the car safe. Keeping the car safe can mean anything from parking it indoors, to only driving it occasionally, to using winter tires. The safer you keep the car, the lower your insurance premium will be. While the cost savings from this tip could be minimal depending on your specific policy, a dollar is still a dollar.
Consider taking a defensive driving course, or study up on how to be a safe winter driver. In many provinces, taking a defensive driving course means an automatic discount on your insurance policy. However, this benefit is multiplied once you realize that driving safely results in fewer infractions and speeding tickets – both of which could have a negative effect on your driving record and on your car insurance rates.
Bundling your car insurance with your homeowner’s or renter’s insurance policy is a good way to save money. Insurance companies will often discount premiums if you sign up for more than one policy because it means more business for the company at a pretty low cost. If your insurance company doesn’t offer bundling, ask your broker for more quotes.