Insurance Corner: How to cut your Auto Insurance costs

by Martha Marton

Increase Deductibles - This one is pretty obvious, but still worth mentioning. If you can afford $1,000 out of pocket for an at-fault accident and do not have a high frequency of claims, you may want to consider increasing your deductibles.

Drop Collision on older car - If you have an older vehicle, you may want to think about dropping the collision coverage. Consider the value of the vehicle and the expense of the added coverage to determine if it is a good value to keep the coverage. If the cost of the coverage plus the cost of the deductible is worth more than the car, it makes sense to drop the coverage.

Insure cars & home together- Most insurance companies offer a credit to insure your home and automobiles together.

Choose car with lower insurance rating- Insurance companies know that different models cost different amounts to repair. Some models are also much more likely to be stolen and insurance companies offer rates that reflect both of those statistics.

If you are planning a purchase, check the report "How Cars Measure Up" from the Insurance Bureau of Canada available on www.ibc.ca.

Shop around - Different insurance companies have different underwriting rules and rates. Depending on your particular situation those rules could make quite a difference in your premium. Independent insurance brokers often represent many companies and can provide you with multiple quotes at one time.

Decrease mileage - Consider taking public transportation, car pooling, working from home or using the older car for the longer drives. Lower mileage can mean a lower insurance premium.

Discuss high-risk drivers - with your insurance representative. If you have a higher value car you may not want a highrisk driver behind the wheel. Perhaps your teenager should not be driving your Maserati anyway! Be sure you have a good understanding of any limitation of coverage.

Maintain good driving record - Everyone knows that accidents and convictions affect your premium negatively and this is something that is largely in your control.

At-fault accidents and claims stay on your record for 6 years and convictions for 3. Drive defensively and safely. Drive the speed limit.

Install approved loss prevention devices - Many manufacturers now include IBC Approved anti-theft devises on their vehicles.

If you vehicle does not have one, you may want to think about installing one. Insurance Bureau of Canada has a brochure listing the "Immobilizers That Meet the Canadian Standard". www.ibc.ca

Suspension of Coverage

Endorsement - If you go to Florida for 6 months every winter, ask your broker about a Suspension of Coverage Endorsement for your vehicle. This will suspend the Third Party Liability and Collision Coverage while you are away.

The Accident Benefits Coverage (this will cover you while in a passenger in someone else's car or while a pedestrian) and Comprehensive Coverage (fire, theft, vandalism, etc for the vehicle) will continue while your vehicle is stored.

Loyalty Credit - Some companies offer a discount at renewal for long time customers with no losses. Once you have done your shopping and have a relationship with a good insurance company, be sure to factor in that loyalty credit when considering a move.

To find the best value for your insurance coverage, contact Martha Marton at Tupling Insurance Brokers Limited. (705) 458-8111 marthamarton@tuplinginsu rance.com

The Innisfil office is located at 1070 Innisfil Beach Rd, Innisfil, ON L9S 4T9 (705) 431-5585