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6 Ways To Reduce Your Auto Insurance Rate



Alberta drivers are bracing for double-digit auto insurance rate hikes after the UCP government canceled a limit on rate hikes.

The Canadian Insurance Bureau has some suggestions for countering rising rates:

1. Shop around

“There are 45 insurers operating in Alberta, and they will all look at each individual consumer differently,” says Celyeste Power, vice president of IBC Western.

"The best thing to do is to look up and ask your insurance representative some questions."

2. Package

You can also see if your current provider or potential new provider will give you a discount if you buy multiple policies – such as home and auto – through one company.

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3. Add an "Adjustment Bit"

Power also suggests investigating UBI, or usage-based insurance.

"I call it unsuitable for your car," she says.

"It actually offers discounts for good driving behavior."


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IBC says several Alberta insurance companies offer UBI programs, which involve a device or application to monitor your driving, with rates tied to results.

WATCH: New Study Says & # 39; Safe to Use & # 39; change driving habits

4. Drop Collision

Power says that being out of collision coverage may be especially an option for less valuable older vehicle drivers.

5. Combating theft

Some insurance companies may offer discounts if you install a theft prevention system. Check with your provider to see if you can qualify.

6. Until your deductible

This may cost more if you make a claim but also lower your annual fee.

READ MORE: Calgary Companies Fear As More Car Insurers Implement Rate Increases

What is the industry doing?

As an industry advocate, the IBC is pushing for regulatory changes in Alberta, such as allowing "pay-as-you-go" plans where rates vary by mileage and other flexibility.

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"In every other industry you deal with, you can customize everything to the exact specification," says Power. "In insurance, you can't. You have two or three options.

"We want to be able to offer more options."


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She adds that there are injuries considered minor in other jurisdictions, but not in Alberta. The IBC would like this to reduce costs for insurers by changing that as well.

READ MORE: Car Insurance Premiums Rising by 2020 for Many Alberta Drivers

“We believe that the money that hardworking Albertans are investing in the system should go to taking care of people after an accident. It should not be in cash arrangements. "

© 2019 Global News, a division of Corus Entertainment Inc.


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