Money Monitor: How you can lower your car insurance costs

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Car insurance rates are on the rise, but if you’re willing to make a few adjustments you can find ways to insure your ride without breaking the bank.

“The best advice I can give on getting the best rate is, be a safe driver,” said Pete Karageorgos, head of consumer and industry relations at the Insurance Bureau of Canada. That means no collisions where you’re at fault and no traffic violations — aside from parking tickets — such as speeding.

Accidents can impact your premiums for more than six years. Raising the deductible can save you cash, but there’s a catch. Upping the threshold that the policyholder is responsible for means you’ll have to pay more out of your own pocket in the event of a crash. Motorists with an older vehicle that has dropped significantly in value should consider dropping their collision or comprehensive coverage.

Over the past six years, insurance companies have increasingly offered in-car monitoring devices that reward clients for good driving. The monitoring program can result in discounts of up to 25 per cent. Make and model are also key to determining premiums, as cars more likely to be stolen come with higher insurance prices.

If you happen to own a high-risk vehicle, installing an anti-theft device can slightly offset your premium. Also Hybrid or electric cars, when compared to souped-up sports cars, often mean less expensive plans. (The Canadian Press)

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