Car Insurance Doesn’t Have to Cost So Much

Insurance is big business, and there are many brokers in the industry vying for custom. It’s not always easy to know who offers what, and as a layperson, you may not necessarily comprehend the legal jargon attached to an insurance contract.

Also, you may not know what kind of insurance coverage you need, nor how to save money even while still having to pay a premium every month.

What Coverage Do You Need? 

There are various types of car insurance coverage available. These include liability, collision, and comprehensive packages. As with pre-determined premiums, there are minimum requirements per province for the type of coverage you should have.

One way to ensure that you understand the provincial specific requirements or the contents of the agreement is to consult a company that specializes in Alberta car insurance if that’s where you live. Many such enterprises offer a free first consultation to clients.

If you wish to add an accidental death or disability benefit to your policy document, discuss it with an expert in the field, as such an inclusion doesn’t form part of the standard clauses of a motor vehicle policy. 

Monthly Installment Costs 

The average premium will vary depending on what state you reside in, your age, and your driving record. If you have demerits against your driver’s permit, you’ll pay a higher premium than someone who has a clean driving history.

If you live in Canada and you own a car, it’s a lawful requirement for the vehicle to be registered. Every territory has a predetermined minimum premium that must be paid. The regulatory authority of the province decides the amount.

Premium Reductions 

Sometimes discounts are allowed on premiums. What you pay will depend on your insurer and their regulations. You’d have to consult with them to find out, but most companies offer reductions for married people, low-risk drivers, and those road-users who drive cars that have some kind of anti-theft, or tracking device fitted.

If you park your car in a safe location during the day, or in a locked garage in the evenings, it may also contribute to a lower rate.

Another way to qualify for a reduced premium is to consolidate your home and car insurance into a single policy. This is referred to as a bundle-and-save option. You can also opt to pay a slightly higher premium each month to prevent having to pay an excess in the case of an accident. 

No-claim Bonus 

If you don’t institute a claim for a specified time (as set out in your policy document), you may qualify for a no-claim bonus. This is an amount that you can use for whatever you’d like. It could be a holiday, a deposit for a new car, or even your children’s school fees. In effect, it’s a reward for being a good client. 

At the End of the Day 

Car insurance is a lawful requirement, but there are ways to save yourself money in the long run. Make use of the consultation services brokers offer and get the best insurance coverage that’s right for you.