Are auto insurance premiums on the rise?

In short, the answer is yes. In its quarterly auto insurance quote study, kanetix.ca, an online insurance quote comparison service, noticed a 1.5 per cent increase in rates for the first time since the study's inception in 2006.

The study looked at the lowest quote obtained by Ontario insurance shoppers during the months of July, August and September of 2007, came up with an average, and compared it to the same for 2006.

Previous kanetix.ca quarterly studies, all showed that for insurance shoppers the average of the lowest premiums quoted was cheaper than the previous year's respective quarter. That is, until now because Q3 2007 showed something all together different; that the competitive auto insurance market in Ontario looks to be swinging in the other direction. With a 1.5 per cent increase in the price of the average lowest quote, it suggests that insurance consumers are going to see increases in their annual auto insurance renewals, making shopping for insurance more important than ever.

If your insurance starts to creep up in price, what can you do? Here are some tips that will help you keep your auto insurance premiums as low as they can be:

Make sure all your cars are on the same policy

Most insurance companies offer a "Multi-vehicle discount" for customers who insure more than one car on the same policy. This can bring you a savings of up to 10 per cent off both cars.

Insure both your car and home with the same company

Again, this may qualify you for a discount called the "Multi-line discount". Most companies offer this savings as an incentive to get your property insurance business, too. It's a great way to get usually another five per cent off your premiums. 

Ask about other discounts you might be able to get

Other than the multi-vehicle and multi-line discounts, other common discounts include the:

• Age discount: A discount on your insurance as you pass certain age milestones. If available, the qualifying age differs from insurer to insurer.

• Anti-theft discount: Obtainable if your vehicle has certain anti-theft devices installed.

• Low mileage discount: Available if your vehicle is not driven often.

• Occupational discount: Offered if you work in a certain field or hold a certain degree.

• Auto club discount: Available if you are a member of an auto club, like CAA.

While the availability of discounts will vary depending on your insurer, where you live and whether you meet the eligibility requirements, asking about them could save you significant money.

Increase your deductibles

In a nutshell, the higher your deductibles, the lower your insurance premiums. Insurance was really meant to cover you for damages you could never afford on your own. If you can afford a $1,000 repair job, then raise your deductibles to $1,000 and pay less for your insurance. 

Older car? Think about dropping your collision coverage

If your car is getting up there in age, you may want to think about dropping the collision coverage on your policy. You need to think about this one though - it's not always a clear-cut decision. You need to weigh the cost of the collision coverage with the value of your car and your chosen deductibles. For example, if you had a 10-year-old car that was worth about $1,000, and your deductible was $1,000, that collision coverage is not going to be worth much. 

Shop around

Auto insurance coverage may be standard throughout your province, but insurance premiums are another story. Coverage from one company to the next can vary by hundreds, if not thousands of dollars. The only way to make sure you are getting the best base price for your policy is to compare, compare, compare. 

Compare car insurance quotes to see if you could save money on your auto insurance premiums.