Insurance companies rate tickets and accidents "horrifically differently," says Romanov. For example, some will raise your rate if you get a speeding ticket, while others won't. Be sure to ask up front before signing on.
6. Consider your vehicle and the deductible you are prepared to pay
If your car is sputtering out, you may want to skip collision and comprehensive coverage because repairing it may not be worth it. Liability coverage is enough. "If you are only going to save $20 on the premium you might as well opt for the lower deductible," Romanov says. "It will save you money in the long run."
7. Ask about an approved theft-deterrent device
"Many companies offer discounts if you have one," says Martin. "The device should immobilize the engine in your vehicle to prevent theft."
8. Teens drive up insurance rates
Adding a teenage driver to your policy can quadruple your auto insurance costs, says Romanov, an auto insurance expert and consumer advocate in Toronto. Ouch!
"At a minimum, it will cost you a couple thousand dollars to insure your teen," she adds. Every situation is different, though. Insurers look at the driver's age, sex, the type of vehicle being driven, where he or she lives (some neighbourhoods have higher claim rates than others), whether the teen has had driver training, and whether he or she has had any tickets. "The best way to keep rates low is to have an accident- and conviction-free driving record," says Martin.
This story was originally titled "Car Insurance" in the May 2009 issue. Subscribe to Canadian Living today and never miss an issue!
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