There are a few different reasons why your auto insurance premiums might take a little bit of a hike – the obvious one being a motor vehicle accident that affects your rates. Sometimes they go up due to factors outside of your control, so it helps to know why and what you can do about it.

What actually influences auto insurance rates?

Probably one of the biggest impacts on today’s car insurance is in the cost of repairs.  With today’s vehicles being outfitted with a variety of complicated technologies, there are far more considerations to deal with after an accident has occurred. The cause of accidents has also experienced a shift.  With smartphones and even some of the vehicle’s on board technologies, distracted driving has become a major concern. Distracted driving creates issue not just for the safety of the community, but also for the fact it increases insurance claims.  

So basically, the amount of work that has to be put into repairs, plus a heightened number of likely accidents, increases auto insurance rates.

So, what can you do to keep your insurance costs manageable?

Keep your broker in the loop…

1. 1. If you are driving less than you usually do, you could be eligible to reduce your premium.  
   2. If you have taken any additional driver training courses, you might be eligible for a discount. This is only for new drivers. So maybe just say if you are a new driver – taking drivers training can significantly lower rates  
   3. If your car has autonomous emergency braking, that could make you eligible for a lower premium.
   4. If you go away for a long period, parking your car and not using it, that might also mean you could reduce your premiums.  

Another thing to consider is increasing your deductible.  It might seem counter intuitive, but if you are a safe driver and less likely to experience an at-fault accident, a higher deductible will mean an overall reduced annual cost.  Of course, if you do get into an accident that is your fault, then it will cost more at that time. But, you can also consider it a greater incentive to drive safely. In that same theme, you can purchase an accident waiver, which will protect against any premium increase should you cause an accident.  It will increase the cost in the short term, but might prove beneficial in the long term. It also helps to know your policy well, as there could be schedules on there you don’t necessarily want – like protecting against rock chips to the windshield.

Bundle Up!

If your household has multiple vehicles or multiple insurance policies, it is well worth it to discuss bundling with your broker. Not only might you get a discount for insuring multiple vehicles on the same policy, but you can also apply for a discount with multiple insurance types like homeowner’s or renter’s insurance.  

Don’t forget about your recreational vehicles in this regard as well.  You might also be able to package in your motorhome or motorcycle to reduce your overall costs.  

Some important points to consider…

1. Protect your car from theft by locking the doors and parking in safe places.  Don’t leave your laptop on your front seat, or any other valuables for that matter that can entice a break in.  
2. Choose the right car, one that is safe.  The make, model, and year will influence your insurance rates.  If you are in the market for a new vehicle, it doesn’t hurt to call and get an auto insurance quote for the vehicle you are considering.  
3. Practice safe driving.  This is so obvious, but it is easy to become complacent.  Not only does safe driving reduce your risk of accidents, but it is better for everyone else on the road.  
4. Add new drivers to your policy. For instance, if you have kids of the age to start driving, then the sooner you add them to the insurance the sooner they can begin to build their driving history and possibly decrease their own rates in the long run.  
5. Use snow tires!  Especially in Alberta during the winter!  

The whole point behind auto insurance is not only to protect you, but to protect others as well.  Consider all of these tips when trying to lower your auto insurance costs, but keep in mind that at the end of the day, piece of mind is really priceless!