Your primary goal if you are looking for car insurance Ontario is to lower the auto insurance premiums without compromising the coverage you need. Comparing quotes online from insurance companies is one of the best ways to accomplish this goal. However, you can control your rates by adjusting the circumstances under your control. If you adjust your circumstances accordingly, you rates will most likely decrease. If you make the wrong decisions, then expect your rates to increase.
With this in mind, we’ll share five foolproof methods below for ensuring your car insurance rates climb. While the following is obviously a tongue-in-cheek approach to the topic, it reveals several ways to keep your premiums at a manageable level.
#1 - Add Expensive Modifications
You might be tempted to modify your car, either for performance or aesthetics. For example, you might want to install a high-horsepower engine, expensive rims, or a stereo that outperforms most home entertainment systems. Think twice before doing so. Many modifications pose high replacement costs, and thus result in a rate increase.
You can choose not to include such upgrades on your auto insurance policy. But realize they won’t be covered in the event of theft, or if you are involved in an accident.
#2 - Cause An At-Fault Collision
One of the most dependable ways to raise your rates is to cause an accident. Depending on the circumstances, you might see your premiums double. If you already have a spotty driving history at the time of a collision, your insurer may decide to move you to a “high-risk” category. Here, rates are sky-high.
On the other hand, if your record is blemish-free, your insurance company may be willing to “forgive” the event. Your premiums will likely increase, but only by a small amount.
#3 - Receive A Violation For Driving While Impaired
Driving while under the influence of alcohol or drugs is never a good idea. If you’re caught, you will be fined and your driver’s license can be suspended. But these problems, while serious, are only the beginning. Your insurance company will likely dramatically increase your rates.
Being convicted of a DUI can increase your premiums to as much as three times their current level. The reason? The conviction tells your insurance company that you are willing to drive while impaired, and thus are liable to cause an accident in the future. Even worse news: the sky-high rates can last for up to six years.
#4 - Include A Bad Driver On Your Policy
If your spouse’s driving history is littered with points, tickets, and at-fault collisions, and you decide to add him or her to your policy, expect your premiums to increase. If your own record is spotless, you might see them double.
A better solution (in this case) is to keep your policy separate from that of your spouse. Allow time to slowly whittle away the black marks. As long as your partner drives safely, his or her history will eventually match your own, at which point you can combine your policies without raising your rates.
#5 - Buy A Vehicle With A Bad CLEAR Rating
Not all vehicles are created equal in the eyes of your insurance company. Some imply a greater likelihood of future claims than others. Your insurer uses the Canadian Loss Experience Automobile Rating (CLEAR) system to help them manage risk. This system tracks the claims history of every make, model, and year. If your car has a long history of frequent and costly claims, its CLEAR rating will inform your auto insurance company. Your premiums will be higher as a result.
Keep these 5 critical factors in mind regardless if you are currently searching for car insurance or if you are currently in a contract. Your rates can significantly increase based on a single poor decision. Take a few minutes to compare quotes online from multiple insurance companies if your contract is soon to expire or if you are looking to find a new insurer.
Be smart about your finances and look for better rates for car insurance Ontario. Be financially smart about your insurance budget because your money could be better spent elsewhere.