Tightwads Tips for Saving on Toronto Auto Insurance

Nobody looks forward to buying auto insurance, particularly when the price is too high. Drivers have multiple to buy insurance from, and although it's nice to have multiple companies, it can be more challenging to compare rates.

It's important to compare prices periodically because prices are constantly changing. Just because you found the best deal a year ago you will most likely find a better rate today. So just forget anything you know (or think you know) about auto insurance because you're going to get a crash course in the proper way to find lower rates on auto insurance.

These discounts can lower your rates

The price of auto insurance can be rather high, but you can get discounts that you may not know about. Some discounts apply automatically at the time of purchase, but some must be specifically requested prior to receiving the credit. If you're not getting every credit you qualify for, you are throwing money away.

Bundle and Save - If you have multiple policies with one insurance company you may earn at least 10% off all policies.
Good Student - Performing well in school can earn a discount of 20% or more. The discount lasts up until you turn 25.
Multiple Cars - Buying coverage for all your vehicles on one policy can get a discount on all vehicles.
College Student - Children who live away from home and don't have a car can be insured at a reduced rate.
Sign Online - A few companies may give you up to $50 for buying your policy over the internet.
Accident Forgiveness - Certain companies allow you one accident before your rates go up as long as you don't have any claims for a set time period.

As a disclaimer on discounts, most of the big mark downs will not be given to the entire policy premium. The majority will only reduce specific coverage prices like collision or personal injury protection. So even though it sounds like all the discounts add up to a free policy, auto insurance companies aren't that generous. Any amount of discount will bring down the cost of coverage.

Different people need different coverages

When it comes to buying proper insurance coverage for your vehicles, there isn't really a perfect coverage plan. Every situation is different so your insurance needs to address that. For instance, these questions may help highlight whether you may require specific advice.

What are the best liability limits?
Why am I required to buy high-risk coverage?
Can I afford to buy a different vehicle if my vehicle is totaled?
Why does it cost so much to insure a teen driver in Toronto?
Does my liability insurance cover pulling a trailer or camper?
I have good health insurance, so how much medical payments coverage do I need?

If you don't know the answers to these questions but you think they might apply to your situation, you may need to chat with a licensed insurance agent. To find an agent in your area, fill out this quick form or you can go here for a list of companies in your area. It's fast, doesn't cost anything and you can get the answers you need.

Are you falling for claims of savings?

Consumers in South Dakota get pounded daily by advertisements for cheaper car insurance by GEICO, State Farm and Progressive. They all seem to say the same thing about savings if you change to their company.

How does each company claim to save you money? It's all in the numbers.

Insurance companies have a certain "appetite" for the driver that earns them a profit. An example of a desirable insured might be over the age of 50, a clean driving record, and has excellent credit. A customer getting a price quote who fits that profile gets the lowest rates and as a result will probably save when switching.

Potential customers who are not a match for these standards will have to pay higher prices which usually ends up with the customer not buying. Company advertisements say "customers who switch" not "everybody who quotes" save that much. That is how companies can truthfully make those claims.

Because of the profiling, you should get a wide range of price quotes. It's impossible to know which company will have the lowest rates.

Additional South Dakota consumer information

Additional information is available on the website for the South Dakota Division of Insurance found here. Visitors are able to view agent and company licensing information, file complaints about a company, report car insurance fraud, and read enforcement actions against agents and companies.

And the best car insurance company is...

While you're price shopping online, it's very important that you do not buy lower coverage limits just to save a few bucks. In many instances, someone dropped liability limits or collision coverage only to find out they didn't purchase enough coverage. The ultimate goal is to buy the best coverage you can find at the best price.

We covered many ways to reduce auto insurance prices online. It's most important to understand that the more rate quotes you have, the better your comparison will be. Consumers may even find the biggest savings come from some of the smallest insurance companies. Regional companies may have significantly lower rates on certain market segments than the large multi-state companies such as .

Cheap auto insurance can be sourced both online and also from your neighborhood Toronto agents, and you should be comparing both so you have a total pricing picture. Some companies may not provide you the ability to get quotes online and most of the time these smaller companies sell through independent agents.