IBC marks Financial Literacy Month by offering insurance tips

In celebration of Financial Literacy Month this November, the Insurance Bureau of Canada (IBC) shared 10 helpful tips for auto, home, and business insurance customers to save on their coverage costs.

"Insurance, like many other consumer purchases, can be expensive," said IBC media relations manager Vanessa Barrasa. "But by taking a few proactive steps, you can help take control of your premiums. IBC offers 10 tips consumers can follow to help lower their rates.”

The 10 tips suggested by IBC are:

1. Shop around: The easiest way to save on insurance, IBC says, is to shop around and compare prices.
2. Increase deductible: Another way to save would be to increase the deductible on the policy; the deductible is the part of the loss the customer has to pay before a claim can be made. When the deductible goes up, the premium goes down.
3. Drive less and consider carpooling: Vehicle use affects insurance rates, IBC cautioned.
4. Drop collision coverage on older vehicles: Collision coverage covers the damage to a car when the driver is at fault in an accident. IBC has suggested dropping this coverage, especially if the driver will be protected by their insurer for their legal liability by law.
5. Drive safety: Insurers look at the type of car driven, where the driver lives, and their driving record to price premiums. A clean driving record can lead to savings.
6. Install an approved theft-deterrent system: Some insurers provide discounts or incentives such as discounts for such security measures.
7. Look into usage-based insurance: Drivers who do not use their car too much could save more with usage-based insurance.
8. Compare insurance prices before buying a vehicle: The make, model, and year of a car affect insurance rates.
9. Ask about discounts and bundle your policies: It never hurts to ask insurers if they offer multi-policy discounts or loyalty programs.
10. Speak with your insurance representative: In the same vein, customers should try asking their insurance representative what they do as consumers to lower premiums. For commercial insurance customers, it helps to be proactive in engaging their representatives ahead of the renewal period.

“Learning about your insurance policies, coverage and limits should happen before any potential disaster strikes,” the IBC said in its release.

Barrasa encouraged customers who still have questions about their insurance to either speak with their respective insurance representative or directly contact the IBC.