Drive Down Your Rates

Everyday life can be expensive – from fancy coffees to daycare bills, the costs can really add up for the average Canadian.

Insurance, just like any other consumer purchase, can be expensive. But with just a few proactive steps, you can help take control of your premiums.

Here are our top 10 tips to help drive down your rates:

  1. Shop around: The simplest way to save on insurance is to shop around and compare prices. We’ve seen a lot of people save on their rates by simply shopping around and asking questions.

  2. Increase your deductible: You can save by increasing the deductible on your insurance policy. That's 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 usage has an impact on your rates. There could be savings if your car is driven less.

  4. Drop collision coverage on older vehicles: You may be able to save big by dropping collision coverage on older vehicles, which covers the damage to your car if you were at fault. 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. But it’s not always easy to change your car or move. A good way to save is to drive safely and make sure your driving record is as clean as possible.
  1. Install a theft-deterrent system: A simple way to help save is to an install an approved theft-deterrent system in your vehicle. Talk to your insurance rep. about a possible discount or incentive program and which systems are approved.

  2. Look at telematics: Consider whether a telematics product, aka usage-based insurance (UBI), can save you money. This involves installing an app or a device in your car that records your driving activities. Insurers can use this information to personalize your insurance premiums.

  3. Compare insurance prices before buying a vehicle: The make, model and year of your car have an impact on your insurance rates. Check out how your car (or future car) measures up.

  4. Ask about discounts + 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.

  5. Talk to your insurance representative: Ask your rep. what you can do to lower your premiums. Your insurance rep. is on your side and they’re there to help.

Share these tips and this infographic on your social channels with the hashtag: #DriveDownYourRates.

​Now, you may be wondering what influences insurance rates in the first place. In the last few years, auto insurance rates have increased for many Canadians for a few reasons. We call these reasons "cost drivers".

Here are just a few at a glance:

Cost Driver 1: Cars cost more to fix.

Newer cars are full of sensors, cameras and expensive technology. Repairs after a collision that looks like a minor fender-bender can cost big bucks. The increases in severity and frequency of severe weather events (hail, wind, water, etc.) have also had an impact on claims costs.

Cost Driver 2: Claims costs have skyrocketed.

In many parts of the country, claims costs have increased substantially. This is because more people with minor injury claims have been receiving settlements in amounts that are along the lines of what is received by those having far more serious injuries. This increases claims costs and premiums for everyone. In nearly every part of the country, on average, insurers have paid out more in claims, operating expenses and taxes than they've collected in premiums in recent years.

Cost Driver 3: Auto theft and insurance fraud are big problems.

There were over 85,000 vehicle thefts reported in Canada last year. (That's 1 theft every 6 minutes). And auto theft isn't just an insurance problem – it's a social menace that takes resources away from police, healthcare and court systems. Auto insurance fraud remains a multi-million dollar problem and is a main driver of insurance costs.

Cost Driver 4: Distracted driving is still not taboo.

Distracted driving, including using social media while behind the wheel, is a big problem. Driver inattention is the leading cause of collisions and contributes to apx. 80% of all collisions.

If have insurance questions, please call our Insurance Helpline 1-844-2ask-IBC. We're here to help.