Ways to Lower Car Insurance Premiums in Ontario

Tips on How to Reduce Auto Insurance Rates and Prevent Auto Theft

Jul 2, 2009

Car owners in Ontario can reduce their auto insurance rates by buying cars with a low theft rate, hybrid vehicles, and anti-theft devices that provide added security.

According to a November 18, 2008 news release by the Fraser Institute, car owners in Ontario, Canada pay the second highest amount of auto insurance premiums in the country, surpassed only by British Columbia. By implementing the following options, vehicle owners will not only reduce their auto insurance rates, but will protect their cars against theft.

Cars with Low Theft Rate in Ontario

Insurance companies calculate auto insurance partially based on the frequency of theft of a particular make. In a December 17, 2008 news release, the Insurance Bureau of Canada reported that the top ten most stolen vehicles for 2008 in Canada were:

The IBC has a comprehensive overview of vehicle theft rates in Ontario on their website. By opting to buy cars with a low theft rate, vehicle owners in Ontario can reduce the amount they pay on annual insurance premiums.

Hybrid Vehicles Auto Insurance Discount in Ontario

Several insurance companies offer discounts in auto insurance premiums for hybrid vehicles, which typically use both an internal combustion engine and an electric motor. TD Insurance Meloche Monnex offers a 5% discount on insurance premiums for hybrid vehicle owners. Vehicle owners should check with their insurance brokers to find out about potential discounts on hybrid cars.

Anti-Theft Devices in Ontario

To prevent auto theft and reduce their auto insurance premiums, car owners should consider purchasing a vehicle with a manufacturer-installed theft device, such as the Immobilizer. The Immobilizer is an electric device, which is fitted to the car, that prevents the engine from starting without the device's key. Anti-theft devices may also be installed after sale, however, vehicle owners should check with their insurance companies to verify the types of devices that qualify for an auto insurance discount.

Increase Deductibles on Auto Insurance

In the event of a collision involving an older vehicle, owners are less inclined to invest more money into vehicles by paying for repairs. By increasing the collision auto insurance or comprehensive insurance deductible on car insurance for older vehicles, vehicle owners will receive a reduced annual insurance premium.

Towing Coverage on Auto Insurance in Ontario

Car owners who already have auto club memberships such as CAA should eliminate duplicate towing coverage on their auto insurance premiums. This is particularly so because towing coverage will also be higher on older vehicles that tend to break down more often. Eliminating towing coverage will reduce an annual insurance premium.

Use a Single Insurance Provider

Insurance companies will often offer at least a 5% loyalty discount to customers who amalgamate all of their insurance policies, including home and auto, through a single insurance provider.

Don't Drive to Work

Driving to work not only puts a strain on the environment, but it also increases the amount that car owners pay for auto insurance premiums as insurance companies weigh the fact that the car will be on the road more often than it would be if used for pleasure use. Car owners intent on reducing their auto insurance premiums should consider alternative ways to work such as the TTC, biking or walking.

Car insurance in Ontario can be expensive, but there are several ways that savvy owners can reduce their auto insurance premiums and protect the safety of their vehicles. By investing in low-theft or hybrid vehicles, increasing deductibles on auto insurance, installing anti-theft devices and eliminating towing coverage on auto insurance, vehicle owners will find great savings on their annual car insurance premiums and great peace of mind regarding the security of their vehicles.

The copyright of the article Ways to Lower Car Insurance Premiums in Ontario in Automotive Insurance is owned by Lori Bosworth. Permission to republish Ways to Lower Car Insurance Premiums in Ontario in print or online must be granted by the author in writing.