A few more suggestions
Ask for discounts. Brokers often give you a break if you insure several cars or family members with them. It helps to bundle several types of insurance (auto, home, life and business). You might get a premium reduction of 5 to 15 per cent if you've installed a theft deterrent system in your car or if you're a low-mileage driver or an older driver.
Drive a car that's less expensive to insure. The Vehicle Information Centre of Canada (www.vicc.com) looks at the claims history of different makes and models - including accident frequency, repair costs, theft, vandalism and safety ratings.
Keep your insurance provider informed of major changes in your life. Some things that might improve your insurance profile and cut your premiums, says Praskey: You move to a less populated area; you change jobs and commute fewer kilometres to work; you buy a new car that has a better insurance rating; you start a home business and no longer drive to work; you reduce the number of drivers in your household.
Finally, don't make small claims if you can avoid doing so. Police must be informed if you're in an accident that causes $1,000 or more in damage to your car or to another vehicle. Then, once you have notified the police, you must report the accident to your insurance company within seven days. But if the damage to your car is less than $1,000 - as long as you haven't damaged someone else's car or injured anyone - you're probably better off not to claim for the accident. That way, it won't go on your record and your premiums won't go up.
You'll have to pay the deductible on your collision coverage anyway. How much extra will it cost to pay for all the repairs yourself? You'll save more in the long run by keeping your insurance record unblemished so your premiums won't increase.
Here's the key point many people don't realize: It's not the amount paid out by the insurance company that counts against you, but the question of fault. "Therefore, an at-fault claim of only a few hundred dollars will count against your insurance record in much the same way as a catastrophic at-fault accident would," says Praskey.
Insurance is there to cover the big losses you couldn't afford otherwise. So pay for the minor repairs yourself and keep your insurance for when you really need it.
Excerpted from Money 201 by Ellen Roseman. Copyright 2003 by Ellen Roseman. Excerpted, with permission by Wiley Publishing. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
