8 tips to lower your car insurance premium
Do you know all the different factors that influence the cost of your auto insurance? A little bit of knowledge can go a long way in helping you reduce your premium. Here are our tips.
1. Update your policy regularly
Has working from home changed your driving habits? Maybe someone else is now the principal driver, or you're moving? It might be time to review the drivers listed on your policy or update your address. Making sure your information is current is key.
Take a few minutes to contact your insurance company and make sure your coverage meets your needs.
Short on time? With our Online Services, you can save time.
2. Insure all your vehicles on the same policy
Own more than one car or recreational vehicle? Some insurers offer additional savings when you insure two or more vehicles under one policy. It can also make it so much easier to manage all your insurance needs.
3. Bundle your home and auto insurance
Having your home and auto insurance with the same insurance provider can make it easier to manage your policies, but that's not the only benefit. You could also get a discount on your premium by combining the two policies.
In some cases, you may only pay one deductible if something happens, and both your vehicle and home are damaged.
4. Increase your deductible
The higher your deductible, the lower your premium. However, keep in mind that you’ll need to cover the full deductible out of pocket in the event of a claim (for example, increasing it from $500 to $1,000).
It’s best to contact your insurance provider to discuss what’s best for you. Depending on your profile and claims history, the savings may or may not be significant.
5. Review coverage on older vehicles
If your car is more than 10 years old, you could reduce your coverage to save more by foregoing full-coverage insurance and only keeping the mandatory liability insurance.
Just remember that liability insurance only covers damage caused to others. That means you'll have to pay the full cost of repairs if you have an at-fault accident or if your car is vandalized.
Before making a decision, talk it over with your insurance provider to ensure you have a clear understanding of how a car accident could impact your coverage or premium.
6. Sign up for a telematics program
Some insurance companies offer usage-based insurance programs, like Ajusto®, so clients can enjoy personalized premiums based on their driving habits and behaviours. This type of program evaluates your driving habits and behaviours by monitoring certain factors (such as speed or braking) and assigns you a score. This gives you more control over your car insurance premium.
With Ajusto, you can turn your good driving habits and behaviours into savings on your car insurance. Plus, you’ll enjoy a 10% enrollment discount on your premium for the first 6 months, just for signing up.
7. Drive safely
Did you know that distracted driving contributed to an estimated 22.5% of fatal collisions and 25.5% of serious injury collisions in 2021?1 Driving safely is not only a good way to avoid accidents, but it can also help you save on your premium. There's more to good driving than obeying the speed limit—for your safety and the safety of others, it’s important to be aware of your surroundings at all times and avoid distractions.
Driving safely can also help you avoid demerit points for violations, which could cause your insurance premium to go up.
8. Choose a vehicle that's less popular with thieves
When shopping for a car, remember to think about insurance costs, which vary by model.
These differences are because certain models are just more sought after by thieves, such as SUVs and pickup trucks.2 Once you've narrowed down your choices, request an insurance quote for the models you're considering. You can even get quotes online to quickly compare premiums and see which one may be cheaper to insure. This can help you create a realistic budget.
1 Government of Canada, “Distracted driving”, [Online], 2024.
2 Équité, “Top 10 Most Stolen Vehicles”, [Online], 2023.
These tips are provided for information and prevention purposes only. They are general in nature, and Desjardins cannot be held liable for them. We recommend using caution and consulting a damage insurance agent for comprehensive, tailored advice.
Ajusto® is a registered trademark of Desjardins General Insurance Inc. Ajusto is underwritten by Desjardins General Insurance Inc. The 10% discount is an enrollment discount. After 6 months, it will be replaced with a personalized premium, which can go up or down depending on your driving behaviours and habits. The discount and the personalized premium do not apply to certain endorsements or additional coverages.