Auto insurance premiums seem to go up every year.  We wrote a post on why they go up.  But can you do anything about it?

You sure can!  Here are 8 things you can do to keep your premiums as low as possible:

1. Intact’s MyDriving Discount

Are you a young driver under age 25 or a new driver?  Intact recently launched the MyDriving Discount which tracks your driving patterns with their new app.  You can click here to learn more.  Depending on your coverage, you can get a 10% discount when you sign up.  After that, the discount can be as high as 25%.

2. Go with a higher deductible

When you have a claim, the deductible is the amount that you pay.  If you have a $500 deductible and your claim is for $1,300, then you pay the first $500 and the insurance company pays the other $800.

A higher deductible means you won’t put in small claims.  And those small claims really add up for the insurance company!  Ask your insurance broker how much you’d save with a higher deductible.  It might be worth it!

3.  Not using your vehicle for a few months?  You can ‘park’ it

If you plan on not driving your vehicle for a few months, your broker can remove the Liability and Collision coverage on the vehicle.  You keep Comprehensive coverage, which covers the vehicle from fire, theft, hail or vandalism.  This can save you a lot of money!  Keep in mind: You can’t ‘park’ a vehicle that’s on public property or if its financed.

4. Watch out for the extras

Aside from Liability, Collision and Comprehensive, you can get extra features on your policy.  Some of those features (like Accident Forgiveness) can be a really good idea.  However, if you never plan on renting a car or driving someone else’s car, you may not need SEF27 Extension to Non-Owned vehicles.  Take a moment to ask your broker what coverages you have.  You may be paying for something you don’t want!

5. Pay annually for your insurance

When you have monthly insurance payments, you are paying interest.  Although its not crazy, most insurance companies charge 3% or 4% interest for monthly payments.  If you can pay once a year, you’ll avoid that charge.

6. Make sure you have the best rating

Did you start driving outside Alberta?  Check out our post on how out-of-province drivers can save money when they move to Alberta.  Some insurance companies give you a better rate when you’re married and for certain occupations.

7. Credit consent

Insurance companies now take your credit score into account when quoting.  Make sure you give your broker consent to let the insurance company pull your credit history.  It’s a “soft” credit check that won’t negatively affect your score.  It can save you a few hundred bucks!  Don’t worry – if your credit score isn’t good, they won’t count it against you and charge you more.

8. Combine your auto and home insurance

Whether you own a home, condo or rent a place – you need property insurance.  Insurance companies give big discounts and free features when you combine your home and auto insurance together.

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