Do you find your car insurance costs a fortune? Don’t panic! We have solutions to help you save money. Car insurance premiums increase a bit more each year, but there are ways to reduce the bill.

Why is your car insurance increasing?

Your driving record

Your driving record plays a major role in calculating your car insurance premium. Insurance companies assess your risk profile based on several elements:

• Accidents: Whether you’re responsible or not, they influence your premium
• Infractions: Tickets and other traffic violations increase perceived risk
• Claims: Each claim can affect the amount you pay

Driving history has a direct impact on your premium. A driver with a spotless record represents less risk for the insurer. That’s why they generally pay less.

Age and experience

Age and experience are key factors that affect your car insurance premium. Generally, less experienced drivers pay more. Why? Because statistics show they’re more likely to have an accident.

Young drivers aged 16 to 24 are often considered a high-risk group. Their lack of driving experience and tendency to take more risks explain this situation.

Claims and thefts

The number of claims you make has a significant impact on your insurance premium increases. Each time we declare a claim, the insurer reassesses our risk level.

Also, the rise in vehicle thefts further accentuates the upward trend in premiums. Insurers face higher expenses to compensate insured theft victims, which translates into increases for everyone.

Inflation and parts prices

Inflation and increasing parts prices play a major role in rising car insurance premiums. These factors push costs upward for insurers, who pass these increases on to rates.

New vehicles, with their advanced technologies, are particularly expensive to repair. A simple windshield equipped with sensors can now cost thousands of dollars to replace. These high amounts are reflected in higher insurance premiums for recent cars.

Your place of residence

Your place of residence can have a big impact on your car insurance premium. Regions where the risk of theft or collision is higher generally translate into more expensive insurance.

We advise checking local statistics for your region. This can help you understand why your premium is higher or lower than that of a friend living elsewhere. The risk associated with your postal code is an important factor in calculating your insurance.

How to choose the right coverage?

Basic coverage vs advanced protection

Basic coverage is suitable if you have an older vehicle or limited budget. Advanced protection is preferable for a new or high-value vehicle. Evaluate your needs and financial situation before choosing your insurance contract.

Adjusting the deductible for a better price

Increasing your deductible can significantly reduce your insurance premium amount. For example, going from a $250 to $500 deductible could decrease your annual rate by 10% to 20%. However, this means you’ll have to pay more in case of a claim.

Evaluate your ability to take on this additional risk. Compare offers from several insurers each year to find the best balance between deductible and premium.

Options to reduce costs in case of claims

Here are some solutions to limit your expenses during an accident:

• Included roadside assistance: avoids unexpected towing costs
• Partial protection: covers specific damages at lower cost
• Agreement with repair network: guarantees quality repairs at negotiated prices
• Courtesy car: prevents you from having to rent a vehicle during repairs
• Personal effects protection: reimburses damaged objects in the vehicle

These options may slightly increase your premium but protect you against high costs in case of claims. Evaluate their relevance according to your situation and needs.

How to lower car insurance premium?

Get quotes with help from a broker

An auto insurance broker, like Gendron Insurance, can help identify your auto insurance needs and carefully examine different coverages for free. This ensures you have the best coverage and allows you to save on your car insurance.

Maintain a good payment history

Always pay your premium on time, without delay. A perfect payment record reduces your risk level in insurers’ eyes. Companies reward reliable clients with lower rates. On average, those who pay their bills punctually get better premiums. Your insurer will appreciate your financial reliability and make you benefit from it.

Combine your auto and home insurance

Group your auto and home insurance contracts with the same insurer. This combination gives you an interesting multi-product discount. Insuring your vehicle and home together strengthens your relationship with the company. You can thus save on both policies while simplifying the management of your insurance needs.

Demonstrate responsible driving daily

Keep a violation-free driving record. A preventive attitude while driving minimizes accident risks. Insurers often offer reductions to careful drivers. Some programs use telemetry devices to evaluate your habits. This method helps better understand your road behavior and adjust your premium accordingly.

Evaluate your policy annually

Check your protection scope each year. Adapt your policy according to your personal situation’s evolution. Your premium amount depends on many factors that can change over time. Use this moment to discuss available options with your insurer. Regular review ensures you always benefit from the best value for your auto coverage.

Save on your car insurance with Gendron Insurance!

Finding your car insurance too expensive? We understand your frustration. At Gendron Insurance, we offer tailored solutions to reduce your premiums. Our team of experts guides you toward the best coverage for your budget. Fill out our quick form today for a personalized quote and discover how to save!

Frequently asked questions about expensive car insurance

Can you terminate an insurance contract before expiry?

You can end your car insurance contract before its term, but certain conditions apply. The law allows this termination, however fees may apply. Comparing offers each year proves wise to get the best rate. Your premium varies according to your age, address, and driving history. Terminating can sometimes help you negotiate a better price with your current insurer or find a more advantageous alternative elsewhere.

How does compensation work in case of accident?

Compensation begins from the accident report and continues until your vehicle is repaired. Repair costs have climbed in recent years, which partly explains premium increases. Your driving history greatly influences the insurer’s coverage. Previous claims can affect your compensation amount and future premiums. The insurer evaluates each case individually to determine the appropriate coverage level.

What is the impact of a claim on the premium amount?

A claim can lead to a significant increase in your car insurance premium. This increase is explained by rising claims and exploding repair costs. Insurers systematically re-evaluate rates after an incident.