Car insurance in Canada and United States : how to reduce its cost

You had a car accident this past year and claimed your insurance company ? Geez, you are really in trouble ! You had no accident in the past 20 years ? Doesn't matter ! The premium is going up 10 % any way. Thanks but no thanks ! So how do we control this huge cost ?

The market for car insurance in Canada and United States is, no doubt, very competitive. Shopping around is very good idea. Get a free quote online here.

But extensive shopping is not the only answer. You need to look at the terms and details of the coverage and important savings might be hidden right there !!

One of the common mistakes made when contracting car insurance in Canada and United States is ... to over protect. Insurance is a tool to cover you against major losses. Do you need to cover a loss of $400 ? or of $3,000 ? If you want to cover every dollar of a potential loss and your claim history is good you are probably paying for nothing. So, review carefully your deductibles : do you have $100 ? $200 ?. Ask your agent how much is the premium at $500 and you will be surprised how much you are saving.

Buyers of new vehicles are often attracted by a coverage for replacement value. Being protected for the cost of a new vehicle in the first year following the purchase is a good idea because it is the period where it depreciates the most. But passed the second year the advantage of such a coverage diminishes greatly. The cost for replacement value often represents 10 % to 15 % of the total insurance premium and may not be worth it. This might be a huge cost saving !

If you are looking to buy car insurance in Canada and United States you should also consider the following tips :

¤ Protect your car against theft. A good car alarm system will reduce your insurance cost. See our article on the subject.

¤ Leverage your buying power : if your agent sells home or life insurance you may be able to get a better deal by "combining the business"

¤ If you are not using the car to go to work make sure your contract does not cover that risk

If you are looking to reduce your premiums, first look at the above factors and make sure your coverage is appropriate. It may result in significant savings. Then, go out on the market. To get an online quote for car insurance in Canada and United States, click here.



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