Insurance premiums tend to be a nuisance, especially if you are a careful owner who protects your assets. Paying insurance premiums can be a challenge when you have never really claimed compensation against your coverage. Additionally, in today’s highly inflated economy, every dollar matters and spending thousands on home and car insurance would seem like a burden. People always try to make the most out of their finances and would like to save whatever they can from their insurance premiums. The problem is, most people do not understand how insurance premiums are calculated, which is why they end up falling prey to shady insurance companies. However, this article will assist people who want to save on car and home insurance in Ontario. Here are a few important tips for reducing your monthly/yearly premiums:
Market Comparison
When you want to purchase a car or home insurance, conduct a market survey – shop around for the best coverage. Every insurance provider follows a different strategy for calculating insurance premiums. They take multiple factors under consideration and follow their own calculations to assess the risk level. Therefore, the prices would vary from provider to provider. A market survey would allow you to compare quotations from multiple suppliers and select an insurance provider that is the most affordable choice. Contact us for your personalized market survey and a review of your insurance policies!
Combining Insurance Policies
Have you ever heard about bulk discounts? It applies to every field, even insurance. If you need to purchase insurance for your car as well as your home, then you can save on your premiums by choosing the same insurance provider. Insurance companies will offer trade discounts and loyalty discounts to individuals purchasing multiple policies. Therefore, if you have to purchase more than one policy, do so from the same insurance provider for a bulk package. We can help with that.
Adding all of your insurance with one company saves time and energy if a claim were to arise. You have one phone number and one company to deal with – every insurance company deals with claims in a different manner. Some take longer, some require more information before they can proceed and if a payout is required some companies calculate the rate by different algorithms. Choosing a broker you trust will help eliminate these headaches and place you with the best company because of past experiences.
Increasing the Deductible Amount
People believe that they can save money on deductibles if they obtain a 100% coverage. However, that is not true; policies that provide 100% cover charge more premiums compared to policies that have deductibles. The ideology is that if the insured does not have a stake in the loss, then he/she is bound to be more careless. However, when individuals are required to pay a deductible amount, they would be more responsible towards negligence. Therefore, you can save on your yearly premiums by increasing the deductible amount.
Avoid Over Insuring
Sometimes, when people insure their homes, they also include the land value in the insurance amount. The only effect of this act is it increases the premium amount. The land is not lost in an accident and remains intact; therefore, a person would never receive compensation for the land value. You can reduce your insurance premiums by only asking for an insurance claim amount that can adequately cover the losses.
Only Claim When Necessary
Sometimes, not claiming something under your insurance is the best strategy. If you have incurred minor scratches or damage to your vehicle or home, it is best to repair it by paying from your own pocket. The reason is that insurance companies calculate premiums based on past records. Therefore, for every claim, no matter how small or big it is, it increases your risk ratings. People with high number of claims would be charged higher premiums compared to people with no claims. Hence, you can save on insurance premiums by not claiming for minor damages.
Take Security Measures
If you have adequate security measures in place, it reduces the risks for the insurance company. For example, if you have water sprinklers in the house and have a covered garage parking, then you are less likely to suffer from fire damage or car theft. If such security measures are reported to your insurance provider in Ontario, the amount of risk is reduced, which will influence the premium calculation.
Annual Payments
Your insurance premium is calculated yearly, but most companies offer a monthly payment solution. The monthly payment plan is an extended facility offered to the customers by insurance providers in Ontario and is not eligible for discounts. However, if you pay upfront in advance, you can claim discounts on the premium amount.
Purchase After Market Survey
When you consider purchasing a property or a vehicle in Ontario, always conduct market research. In Ontario, the location of the property will influence the annual premium rates. Certain areas are considered high-risk areas and would have higher insurance premiums. The case is similar for vehicles; certain cars are more likely to be stolen compared to other cars, which can increase the premium rates. Therefore, by conducting a market survey, you can purchase a property or a car that is not in the high-risk zone, reducing insurance premiums.
Bulk Policies
If you have more than one car at home, then it is better to purchase ‘multi-vehicle’ policies instead of individual policies because a discount will be added to your premium. Buying ‘multi-vehicle’ policies would cover multiple cars under one policy, which is cheaper than purchasing two individual policies.
