Part 2: How to Reduce your Insurance Premiums


As a continuation from last week’s post “Part 1: Factors that Impact Insurance Premiums“, we thought it would be helpful to share some tips on ways to reduce the insurance premiums that you pay, allowing you to put some money back in your pocket!


 Start Early

Whether we are talking about automobile or property insurance, it is good to start your history early and at a young age.  The more continuous (claims free) history that you have, the more experience, renewal and claims free discounts you will qualify for.  When you first obtain your class 5 licence and do not own and insure a vehicle, we recommend that you are listed as a secondary or occasional driver on your parent’s or spouses policy to begin building history.  As well, if you are thinking about purchasing a home or condo down the road, we recommend having a tenant’s insurance policy in place to build up your insurance experience which will in turn help reduce the premiums you pay later on.  You will also have the benefit of coverage on your contents and liability while you are renting.


Good Driving

As mentioned in last week’s post, your claims and licence history can have a huge impact on the insurance premiums you pay.  Driving safely and within the speed limits will not only protect you against claims, it will protect your pocket book too!


Increase your Deductible

A great way to reduce your premium is by increasing your deductible, thus self-insuring small claims.  Most insurance companies will provide a discount when you increase your deductible, whether it be on your automobile or property insurance policy.


Combine your Policies

There are significant discounts available for combining your automobile and property insurance policies with the same insurance company.  Some companies also include additional coverages at no cost when the policies are together.


Pay in Full

Another easy way to save yourself some cash is by paying your insurance premiums in full.  Most insurance companies offer payment plans, but those plans include a service fee ranging from 3%-4%.


Credit Consent

Many insurance companies are now incorporating  “soft credit” checks in order to apply additional discounts to your insurance policies.  The credit check does NOT impact your credit score nor do we as a Broker receive any information on your credit rating or history.  The soft credit check is run internally through the insurance companies’ rating programs.


Regular Insurance Review

By doing a regular review of your insurance policies, you can ensure that all of the information on your policy declaration pages is accurate and up-to-date.


Use a Broker

Perhaps the most important advice we can give you with respect to reducing your insurance premiums, and more importantly, ensuring you are adequately insured, is to use the services of an Insurance Broker.  As a Broker, we represent multiple insurance markets and can find you the right coverage and price to suit your needs.  We will also ask you all of the necessary questions to ensure you receive the maximum eligible discounts and we can provide you with advice in the event of a claim.


Hopefully you have found this information helpful.  Please do not hesitate to contact our Office if you have any questions regarding the information above or in regards to your insurance policies.


Thank you,

Costen Insurance