Money Saving Tips for Auto Insurance!

It’s been a while since I’ve posted a money saving strategy, this time around we’re going to discuss how to save money on the dreaded auto insurance! I’ve been utilizing these tips below when insuring my home and our two vehicles.

  1. Increase Your Deductible

    • The deductible is the amount of the claim that you are willing to pay.
    • If your claim is $2000 and your deductible is $500, you will pay $500 and your insurance company will pay $1500.
    • Increasing the deductible from $500 -> $1000 can reduce your premium by 5%-10%.
  2. Shop the Insurance Market

    • Coverage may be pretty standard in your province, but premium differences can be vast. Make sure to shop around by getting quotes from multiple companies.
    • After doing my due diligence, I found that TD Meloche Monnex offered the best rates by a fair margin. Perhaps it was because I belonged to a professional association.
  3. Insure your Home and Automobile with the Same Company

    • Buying your home and auto insurance policies with the same company will give you a discount on BOTH policies. Sometimes up to 10%.
  4. Insure all Vehicles under the Same Policy

    • If you have multiple vehicles, placing them under the same policy can save you up to 10%.
  5. Buy a Car that Costs Less to Insure

    • Be sure to get insurance quotes on the vehicle that you are planning on purchasing.
  6. Follow the Speed Limit

    • Not only can speeding tickets be costly, they can jack up your auto insurance premiums also! (Perhaps I speak from experience?)

Those are my top 6 ways to save on auto insurance! Feel free to add any tips that you may have for reducing your auto insurance premiums in the comments.

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FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.
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j.morris
5 years ago

I receive an annual discount from my Insurance Co. if I restrict my annual mileage to 10 thousand work related miles.

Jeff W
7 years ago

Pay your annual premiums up front rather than monthly, most ins company’s will offer a discount OR you are paying a fee to pay monthly.

Irfan Qureshi
10 years ago

My son and daughter have just acquired their driving license, age 22 and 19 respectively. Both of them are university students. Any tip on reducing their auto insurance is welcomed.

Austin Auto Insurance
10 years ago

Hey thanks for those tips, seriously helpful. Especially if you get an auto insurance quote every now and then just to see if you can reduce your rates!

chevy 350 engine
10 years ago

With many years of experience and expertise in the field of Chevy / GM motors – you will be delivered a high quality engine that we are willing to stand behind for 7 full years – 70,000 miles!

Allyson
10 years ago

Thanks for the information Frugal. These tips really save money for auto insurance. The insurance company offers scheme/policies such as ‘pay as you drive car insurance’ which really saves money on insurance where we need to pay only when we drive. This is really a good idea and good scheme for those who can pay insurance only that drive their car often and can also insure car for single day or for 28 days who borrow or rent a car for relatives or friends. This will help in saving money on car insurance. The tips are really very helpful in saving money on auto insurance.

Jeff Meyer
11 years ago

Can anyone reccomend a “HIGH RISK” insurance company , or a broker twho deals with such companies?

It’s been 2 years since an accident, but I have 2 acciedents 3 years ago (at fault) and I am dishing out 400$ a month to drive!

i’m with Economical (Perth) insurance now…

would apprecaite if anyone has some good experience being in a similar situation!

even just for shopping around purposes as the online quote systems always fail after you say you have 2 accidents.

thanks so much!

regards,
Jeff

Insurance
12 years ago

Hey Y’all

I have 2 cars, 1 house and life insurance from Co-operators. Before my wife and I bought our house we only had car and apartment insurance(apartment through CAA). However, once we added 2 life insurance policies and our house insurance, the savings in combining 5 policies(2 life insurance, 2 cars and a house) pretty much paid for the house insurance. So bundle up all insurance products with one company.

Aqorps
12 years ago

Well having seperate winter tyres for your vehicle might save you up to 5% That’s what I have seen..

Term Insurance Pro
12 years ago

You mentioned home owner’s insurance in this article too, and I determined to double my deductible. I figured that every 6 months I didn’t have a claim I’d be saving money. So hopefully my bet comes through.