In a perfect world, we could predict and save for every major car repair bill long in advance of the ding to our bank accounts. In a perfect world, we also wouldn’t need to worry about lowering our insurance rates or insurance at all, for that matter.
When it comes to car insurance, the next best thing to living in a perfect world is taking excellent care of your vehicle so you can save as much money and worry as possible about unexpected bumps in the road. Let’s take a look at how spending money to keep your car in good shape can help you save money on insuring it in the long run.
Safe, Accident-Free Drivers Pay Less
If you’re conscientious about taking care of your vehicle, you’re probably more likely to be a conscientious driver. Experienced safe drivers with no at-fault accidents on their driving record get the best auto insurance rates.
While accidents can happen to anyone (that’s what accident forgiveness is for), you’re less likely to get in a fender bender on an icy road if your brakes are in good shape and you have winter tires. It’s driving scenarios like this where responsible maintenance and driving practices combine to help you get the best possible car insurance rates.
Spend Your Money On The Right Features
When you spend on your vehicle, is your money going towards maintenance to improve its safety and reliability? Or is your main priority adding custom and luxury features, like a new stereo system or custom paint job?
As a general rule, any add-ons that increase your vehicle’s value and don’t improve safety or reliability will make your car more expensive to insure because your souped-up ride is more costly to repair or replace.
Safety Features Can Help You Save Money
Your insurer wants to know as much as possible about how, where, why, and what you drive. That includes factors like the age, the make, and the model of your vehicle, as well as any safety features that will help protect your car, yourself, and everyone else on the road. If your car has a high safety rating and isn’t associated with high theft statistics, you’re on the road to lowering your premium.
Not only can winter tires help save you from cold weather collisions, but many insurance companies will also give you a discount just for installing them. Speak to your insurer about how much you can save and when you need to change your tires to qualify.
On the other hand, safety features like backup cameras can be more expensive to replace or reconfigure if your vehicle needs certain repairs, for example, a windshield replacement. Talk to your insurance advisor about how your vehicle’s unique combination of replacement value, safety or anti-theft equipment, and optional insurance coverages impact your premiums.
Can You Afford To Skip Optional Coverages To Save On Premiums?
Collision and comprehensive insurance are not mandatory, unlike third-party liability, accident benefits, uninsured/underinsured driver coverage, and property damage insurance.
While not mandatory, having collision and comprehensive coverage can help you save a lot of money on repairs in various circumstances, but cutting out optional coverage will help you save money on your insurance premiums.
Consider how removing comprehensive, or collision insurance from your policy could impact your finances and your ability to care for your car:
- Do you feel your vehicle’s risk of damage from collisions or other events like theft or extreme weather is low?
- Are you confident that you could afford to repair or replace your vehicle without the help of an insurance payout?
- Is your current auto insurance deductible relatively high?
- Do you already take care of most of your vehicle’s repair costs without making an insurance claim?
- Do you have an older vehicle in good shape that would be affordable to replace?
If you answered yes to some or most of these questions, it might make sense for you to skip optional insurance coverage. Talk with your insurer to get advice about reducing your coverage.
Keeping Up With Insurance Payments Doesn’t Go Unnoticed
While spending on maintaining your vehicle is very important, it’s also essential that you set enough money aside to make your auto insurance payments on time. Suppose missed payments result in a gap in your insurance coverage. In that case, it can make it difficult to buy insurance at affordable rates in the future, as each insurer will check your insurance history.
Setting up automatic payments is an excellent way to avoid missing a payment deadline, but don’t forget to shop around and get multiple quotes before your policy renews! In addition, many companies offer discounts when you pay for your policy annually instead of monthly because it helps them save money processing more frequent payments.
There’s not always a direct relationship between what you spend caring for your car and how much you pay for insurance in our imperfect world. In other words, if you spend $100 on car maintenance, there’s no guarantee that you’ll save $100 on auto insurance. Moreover, many of the factors insurance companies use to determine your rates, like your age, years of driving experience, and accident history, are at least partially out of your control.
Nevertheless, you can rest assured knowing that well-maintained vehicles are generally among the most cost-efficient to drive and safest on the road, which are both factors that make your car easier (and likely more affordable) to insure.
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Bundle and save today with home and car insurance coverage in Ontario, and get started with an online quote or call aha insurance at 1 (855) 242-6822.
1) Hudson’s Bay Rewards points offers may change without notice. All Rewards points will be awarded within four to six weeks. When you pay your monthly premiums, you will earn 1,000 Rewards points when you enrol for a $200/month benefit; 2,000 Rewards points for a $250/month benefit; 4,000 Rewards points for a $500 benefit; 6,000 Rewards points for a $750/month benefit and 8,000 Rewards points for a $1,000/month benefit. Earn up to 8,000 Rewards points on the anniversary date of your policy. Rewards points will not be prorated if you cancel before the anniversary date.