IBC’s top 10 tips to reduce insurance premiums

Toronto, ON (Nov. 1, 2021) – November is Financial Literacy Month in Canada, understanding your insurance policy is an important part of overall financial literacy. Insurance Bureau of Canada (IBC) is sharing 10 ways for home, auto and business insurance customers to help lower their rates.

“Insurance, like many other consumer purchases, can be expensive,” said Vanessa Barrasa, Manager, Media Relations, IBC. “But by taking a few proactive steps, you can help take control of your premiums. IBC offers 10 tips consumers can follow to help lower their rates. As always, if you have insurance questions, speak with your insurance representative or call IBC at 1-844-2ask-IBC. We’re here to help.”

Here are IBC’s top 10 tips to help reduce your home, auto and business insurance rates:

  1. Shop around: The simplest way to save on insurance is to shop around and compare prices.
  2. Increase your deductible: You can save by increasing the deductible on your home, auto and business insurance policies. The deductible is the part of the loss you have to pay when you make a claim. When the deductible goes up, the premium goes down.
  3. Drive less and consider carpooling: Your vehicle use affects your rate. There could be savings if you drive your car less.
  4. Drop collision coverage on older vehicles: You may be able to save by dropping collision coverage on older vehicles, which covers the damage to your car if you are at fault in an accident. Don’t worry, you’ll still be protected for your legal liability if you get into a collision that was your fault. By law, insurance will cover the damage you cause to the other person’s car.
  5. Drive safely: Insurance companies set prices by looking at the type of car you drive, where you live, and your driving record. A good way to save is to drive safely and make sure your driving record is as clean as possible.
  6. Install an approved theft-deterrent system: Speak with your insurance representative about a possible discount or incentive program and which systems are approved. For commercial insurance customers, ask your insurance representative about the risk mitigation techniques you can implement to potentially help lower your premiums.
  7. Look into usage-based insurance: Consider whether usage-based insurance (UBI) can save you money. It involves installing an app on your phone or a device in your car that records your driving activities. Insurers can use this information to personalize your insurance premiums.
  8. Compare insurance prices before buying a vehicle: The make, model and year of your car affect your insurance rates. Check out how your car (or future car) measures up.
  9. Ask about discounts and bundle your policies: A good way to save is to ask your insurance company to bundle your home and car insurance policies. Insurers call it a “multi-policy discount” or “loyalty program.” It never hurts to ask.
  10. Speak with your insurance representative: Ask what you can do to lower your premiums. Your insurance representative is on your side and they’re there to help. For commercial insurance consumers, being proactive about engaging your representative ahead of your renewal period is a good way to help ensure you have a policy that meets your needs.

Learning about your insurance policies, coverage and limits should happen before any potential disaster strikes. IBC encourages customers to contact their insurance broker or agent to review their existing policies, or start new ones, and ask questions to ensure they are properly protected.

About Insurance Bureau of Canada

Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

For more information, visit www.ibc.ca. If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Centre at 1-844-2ask-IBC.

Source: Insurance Bureau of Canada (IBC)

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