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Insurance Tips: How can I reduce my auto insurance premium?

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A message from OPSEU/SEFPO’s Insurance Provider, RGI Group:

No one likes paying for insurance, but no one plans to get into an accident either.  For those of us living in Ontario, we pay some of the highest auto insurance premiums in the country. But even though you have to have insurance, there are some ways you can reduce your premium and save some money.

There is no such thing as one-size-fits-all auto insurance coverage, which means there is no one-size-fits-all price, either! If it is time for you to shop around for a lower auto insurance rate, this is also a great time to learn what factors the insurance carriers consider when they come up with your price. Your Insurance Broker should speak directly to you to determine the coverage that best suits you and your needs.

First, let’s discuss how your premium is calculated.

How is your premium decided?

The first factor that insurance carriers consider to determine your auto insurance premium is the make, model and year of your car. Generally, the harder your car is to steal and the less expensive it is to repair, the less you pay for insurance. The records of the people insured to drive the car and your geographical location are also deciding factors.

The list of factors that play a role in your auto insurance premium is extensive but we have compiled a list of the most common factors:

  • Where do you live/work – History and statistics have shown that higher density populations equal more accidents, risk and thefts. Frequent claims in the area you live equals higher insurance premiums.
  • How much do drive the vehicle– the more you are on the road, the higher the chance for an accident to occur.
  • Driving record – The number of years you have had your license, the number of speeding tickets you have and past claims are all taken into consideration when determining your premium.
  • Your age – Younger drivers tend to have higher insurance premiums because statistically this demographic tends to have more accidents. The older you get, the lower your insurance should be.
  • The level of coverage – although there are some standard coverages, ultimately you get to choose on items such as your deductible, accident benefits, collision and comprehensive.
  • What make/model/year is your ride – Insurance Bureau of Canada collects data on how often your vehicle type has a claim, how severe the injuries are as a result of an accident and the cost of repairs. These factors all relate to a rating that is given to your vehicle which the insurance company then bases premiums off of.

How you can save money on your auto insurance?

  • Winter tires – if you change your tires seasonally to winter tires, you should let your Insurance Broker know. You could be entitled to a discount on your premium.
  • Bundle your insurance policies – If you bundle your home insurance, condominium insurance, or tenant insurance with your auto policy you could be entitled to a discount.
  • Keep a clean driving record – Each infraction will increase your insurance premium.
  • Usage Based Insurance – some companies offer discounts based on your specific driving habits. These are assessed by either an app on your phone or a device that you plug into your car.

You can always review your current policy with your Insurance Broker, and you should definitely reach out to your Insurance Broker if conditions in your life change (say… due to a pandemic?!). Here are just a few events that should trigger a review of your auto policy:

  • When your policy comes up for renewal.
  • When you experience a major lifestyle change such as living arrangements and family changes.
  • You make major modifications or improvements to your car.

R.G.I. Insurance Brokers Inc. negotiates the very best coverages and rates with carriers, and passes those along to you through your exclusive group program. You can expect exceptional customer service, and our claims guarantee protects you, and your most valuable possessions.

As a member of OPSEU-SEFPO, RGI’s team of insurance professionals is standing by to answer your call. If you have questions about your insurance, we invite you to call us and speak to one of our team members.

We are available Monday to Friday, 9am until 4:30pm.

Phone: 416.477.7687

Toll Free: 833.90.GROUP