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Auto Rates Are Rising – 5 Tips to Help You Save Money Fast

It seems like the price of everything is going up these days and auto insurance is no exception. Unfortunately, pay rates don’t always rise in accordance with price hikes. Moreover, that can lead to a ton of stress.

Thankfully, when it comes to auto insurance, there are steps you can take to lower your costs. Read on to learn about five steps you can take right away to start saving some money.

Auto Rates Are on the Rise, But Insurance Rates Are Still Lower Than They Used to Be

While rates are on the rise in New Brunswick, Nova Scotia, and other parts of Canada, they’re nowhere near where they were a decade ago.

In 2007, a 33-year-old had to pay $994 for full coverage on an SUV. A 49-year-old had to pay $1123. And if a 41-year-old had full coverage on an SUV and a motorcycle, they’d have to pay $1835.

Things changed for the better in 2012, with cost savings ranging from $217 to $306 for the scenarios above.

Between 2012 and 2019, however, prices on some policies started to rise.  

What is causing this rise?

Inflation has no impact on auto rates. Instead, they rise and fall according to the number of claims filed, also known as “usage.” Rising costs can be impacted by:

  • Distracted/impaired driving accidents
  • New vehicle repairs
  • Fraud

5 Steps You Can Take Right Now to Start Saving Money on Auto Insurance

Knowing that you’re paying a lower amount than you were back in 2007 might be of little consolation. After all, you have to deal with rising costs right now.

Thankfully, there are steps you can take to start reducing those costs.

1. Check the Discounts Within Your Policy

Discounts should be listed on your policy.

Check your policy for the following discounts:

  • Conviction- and Accident-Free:
  • The Multi-Vehicle Discount (MVD): If you and those living under your roof have coverage through the same insurance company, you’re eligible for a discount.
  • Affiliation/Employment with Certain Groups: Some insurance companies offer group or association rates. If you’re an employer or otherwise affiliated with a particular company/association, you could end up with an auto rate discount.
  • Loyalty and Stability:  Long-time customers who haven’t had to use their policies are rewarded loyalty and stability discounts.
  • Payment in Full:  Some companies provide their customers with a five percent discount if they pay their annual premium in full each year. Five percent may not seem like a lot, but it will add up. If you can afford payment in full when it’s time to renew your policy, you should consider it.
  • Driving Experience: Newer drivers are a higher risk for insurance companies. You can receive a reward resulting in a discount for your years behind the wheel.

2.  Bundle Your Auto Insurance Coverage

Quite a few insurance companies offer a variety of coverages for automobiles. If you have multiple coverages already, you could save some money by adding the others into your plan. These are called “coverage bundles.”

Talk to your insurance broker to see if they offer this and if this is the best plan of action for your needs.

3. Try Bundling Your Home and Auto Insurance

Policies Another bundling option is to bundle all of your policies. Insurance providers offer policies for:

  • Homeowners
  • Renters
  • Cars/Trucks
  • Motorcycles
  • Boats
  • RVs.

Your insurance provider might be able to offer a discount of up to 20% when you combine multiple policies, like your home and auto policies.

4. Get Rewarded for Excellent Driving

Do you like the idea of getting rewarded for something? Who doesn’t?

Insurance companies want to reward safe drivers. So, they encourage drivers to utilize apps or insurance tracking devices. These devices track your driving habits. Then, the insurance company offers a premium based on how you drive. Some drivers can save up to 30%.

5. Consider Reducing the Coverage on Your Vehicle(s)

When you get an auto loan, full coverage insurance is typically required. After you’ve paid off your loan, you can choose to reduce your coverage.

You can also decide whether you want to stick to full coverage or not if your vehicle is over 10 years old.

Talk to your insurance broker to see if you really need:

  • SEF20 (loss of use coverage)
  • SEF27 (liability for damage to a vehicle you don’t own)
  • Collision coverage.

Coverage you should never consider removing is accident waiver protection. Accidents can happen to anyone, no matter how safe of a driver they are. It’s best to have this coverage as a precaution.

Talk to Your Insurance Provider Before Making Any Decisions

Everyone is different. We all have unique needs and budgets. You need to find what works for you—and we’re here to help you do that.

Whatever your questions are about auto insurance coverage and rates in New Brunswick and Nova Scotia – we can answer them.

We want you to get the best coverage for your needs at the best price. And if we can help ease your mind and reduce some stress along the way – that’s like icing on the cake!

Are you worried about rising costs? Let us help. Contact us today to schedule a consultation. We’ll show you how you can start saving money right away.

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