Nobody likes paying for auto insurance. It’s one of those financial needs most of us lament even though we accept it is an essential investment. A good way to soften the blow of that yearly car insurance premium is to find ways to make coverage more affordable. Thanks to the COVID-19 pandemic, budget tightening has almost become a national sport.
As uncertainty around the pandemic lingers on, getting the most affordable auto insurance rate possible may be a small saving, but every little bit helps.
One way to find the most affordable car insurance premium is to keep a close eye on rates since they fluctuate throughout the year. By monitoring changing rates, drivers can better grasp the market and find the best deal for their insurance needs.
COVID-19 and Financial Concern
Canadians are more worried now about the financial fallout of the COVID-19 pandemic than they were during the first stages of the crisis. As lockdowns and waves of the virus are ongoing, it makes sense that people are increasingly concerned about their financial outlook. Despite some hope in the form of a vaccination program, Canadians have seen their finances hit consistently for 10 months.
The MNP Consumer Debt Index is currently at its lowest since it debuted in 2017. Since September (the largest three-month decline ever), it has plummeted five points as Canadians lose confidence over their debt commitments. The quarterly survey assesses Canadians’ outlook regarding their debt situation and tracks how they feel about being able to meet their financial obligations each month.
A year into the pandemic and there is little light at the end of the tunnel. Canadians who have seen their financial position diminish during the crisis are losing confidence rapidly. Debt anxiety is at an all-time high amongst the country’s population as financial pressure mounts.
While this puts many Canadians in financial peril, it also leads to more consumers taking action to reduce their expenditures. Auto insurance is a good place to start.
Tracking Rates to Save Money on Auto Insurance
With car insurance, some cost-cutting methods are well-known, such as shopping for quotes and contacting your insurer to ask about discounts. However, many drivers may be ignoring the importance of tracking rate changes.
Insurance companies apply to provincial regulatory authorities for rate increases or decreases. If approved, these rate changes are passed to customers. That means an approved rate increase will impact the average motorist upon their next policy renewal date.
Tracking rate changes across the industry can help customers understand which companies are approved to increase or decrease their premiums. Upon renewal, it becomes easier to find affordable rates.
Ontario is perhaps the best example of why tracking rates are useful. The Greater Toronto Area is the most expensive place to insure a vehicle in Canada. Due to the relatively volatile and unpredictable market in Ontario, tracking rate changes can help you prepare to find the best deal.
RATESDOTCA tracks rate changes across the year and informs customers in Ontario about those changes, making it easy to understand potential increases or decreases in premiums.
All insurance companies in Ontario must apply to have rate changes to the Financial Services Regulatory Authority (FSRA). The province’s car insurance regulator then approves or denies these rate change requests. The FSRA has an online consumer hub where Ontarians can track rate changes and learn more about insurance costs in the province.
Other Measures to Save Money on Auto Insurance
Tracking rates is helpful, but there are other money-saving measures drivers can take to reduce their auto insurance costs. Firstly, it’s never a bad idea to contact your insurer and have a conversation about potential discounts you can get. That is certainly possible during the pandemic as the lockdown has changed the driving habits of many people.
When your renewal is coming up, shopping for insurance rates at RATESDOTCA is the absolute best way to ensure you get the most affordable premium for the coverage you need. By combining all these strategies, it may be possible to make a significant saving on your auto insurance premium.