Get the best insurance rates

Your car insurance policy comes up for renewal and you gasp at the higher premiums. After several years of stable rates, the average cost of car insurance went up 30 per cent across Canada in 2002. New Brunswick and Nova Scotia have seen huge hikes, up to 70 per cent. Those with lower increases include Manitoba and Saskatchewan, which have public auto insurance systems.

Premiums are going up because of an influx in non-serious injury claims, the private insurance companies say. They also blame the current investment climate of low interest rates and poor stock market returns, which hurt firms' ability to cover their underwriting losses.

Is it time to start shopping the market to see if you can find a better deal? Yes, if - and only if - you have a good driving record. However, if you and your family members have made several claims in recent years (even if the accidents were not your fault), you may find the rates quoted are much higher than what you currently pay. The effort is still worthwhile, even if you discover you're better off staying where you are.

Online shopping
The Internet is a real boon to comparison shoppers. Many Web sites will give you access to real-time quotes in minutes, even if you don't buy insurance online. It's much faster than spending hours on the phone trying to contact brokers and insurers directly. Online quotes usually come from two sources: Kanetix (www.kanetix.com), which quotes car insurance prices from about 10 large Canadian companies; and the Consumer's Guide to Insurance, which offers quotes from more than 30 companies online (www.insurancehotline.com).

Getting started
Before you get going, call your current insurer to get information about your driving history. How many claims have you and other drivers in the family made in the past six years? Ask for details of any accident or claim during that period (including claims under your comprehensive coverage, such as theft or windshield damage).

Tickets, accidents and previous claims
When you shop for new auto insurance coverage, you will also have to provide information about your conviction record in the past three years (offenses related to the operation of your car, such as speeding tickets and seat-belt infractions). You can obtain your motor vehicle record from the provincial transport ministry, but insurance companies require a three-year history. If you're not sure of dates, check with your current insurance provider.

It's a good idea to keep your own record of the dates of any tickets, accidents or claims. "If you're not sure of the date of your last ticket or accident, tell your prospective insurer you can't remember when it was," says insurance expert Sally Praskey, whose advice is posted at the Insurance Canada site (www.insurance-canada.ca). "If you say you haven't had any tickets in the last three years and the insurer discovers otherwise-and it will-it may refuse your application or charge you more for your coverage."

Some insurance companies will forgive one at-fault accident, especially if you're a long-term customer with an otherwise good record. Full accident forgiveness is an option that typically costs about $30 a year. It's worth the money. However, your chances of being forgiven are much less if you are a new client. Ask what the new company's forgiveness policy is for an at-fault accident before you make your decision.