Tips To Reduce your Auto Insurance Premiums

June 24, 2015 4 min read
Auto Insurance

While it may seem complicated, calculating auto insurance rates is actually a very simple and straightforward process. That being said, the key to lowering your premium (in Manitoba) lies in how you drive, what you drive, and the coverage you choose. However, there are a few ways you can save on your auto insurance.

Keeping a clean driving record

In Manitoba, the best way to keep your auto insurance premiums down and save money is to maintain a good driving record. Your driving record ultimately determines your rate. Bad driving history will stay with you and cost you more on your premium, whereas a good driving record can save you money.

Where you live

Where you commute from will affect your insurance premium. Manitoba is divided into four geographic sections for vehicle rating purposes. Each section is identified with varying levels of risk; the lower risk rating means the lower your insurance rates.

Choosing the right vehicle 

The type of vehicle you drive will impact your insurance premiums. The year, make and model of your vehicle are instrumental when it comes to determining your rate. New vehicles typically cost more to insure than older cars and sport coupes more than family sedans. Generally, luxury automobiles are more expensive to insure because they are more expensive to repair and replace.

General statistics such as theft and safety ratings are also considered when determining your rate. Vehicles with higher safety ratings or with better occupant protection can help reduce your premiums.  Visit the Insurance Bureau of Canada to see the difference in the frequency of theft and claims for various cars and to better understand how your choice will affect the amount you pay for car insurance.

Increasing your deductible

A deductible is the portion of your claim that is not insured under your policy. Your insurance will cover the amount over your deductible (up to your policy limit). Typically, higher deductibles translate to lower premiums. This means increasing your deductible can lower your rate but you will have a higher out of pocket cost if something happens to your vehicle and you need to make a claim. Visit the MPI website to view the different deductible choices.

Review your coverage

Review your coverage with your broker. There may be opportunities to save on your insurance by reviewing the type of coverage you currently have and what you actually need.

  • Increase your deductible. Like we mentioned earlier, if you’re willing to pay a higher deductible you may end up paying less for your insurance.
  • Determine your vehicle usage. Insurance rates differ depending on what you use your vehicle for. If you only drive your vehicle to work four times a month or less, you can insure based on pleasure use which is a lower rate than all purpose coverage. Or if farming is your primary occupation, you may be eligible to insure your vehicle differently and save you money. Be sure to speak with your broker and let them know if your job situation has change, these savings could apply!
  • Ensure that your current coverage is up to date. If you have installed a theft-prevention or safety device, you may qualify for a lower rate.

If you’ve read the above information and have some questions about your current coverage, come talk to one of our experienced auto insurance brokers today. We’ll take the time to get to know you – and your car insurance needs – to ensure you have the right coverage and your vehicle is insured to full value.

Speak to your insurance provider

As changes occur in your life, so do your insurance needs. If you haven’t been in touch with your insurance broker in a while, it might be a good idea to contact them to see if your coverage is still right for you.

Written by

Alex Harms is part of our marketing team at MIG Insurance and she specializes in writing content to make insurance easier to understand for our clients. She obtained her Bachelors in Commerce (Hons.) at the Asper School of Business and worked with MIG as a broker during her studies and now fulltime in a Marketing & Operations role. She has taken on many tasks her at MIG but enjoys the challenge. Outside of work she enjoys spending time with her family as well as her dog Murphy, out at the lake which is their favourite spot!