The purchase of an insurance contract can sometimes be a headache for the consumer as the offer is vast and variable prices. What criteria do insurers use to determine the cost of an insurance policy?
In addition to the protections purchased in your insurance policy, several factors are taken into account in determining the amount of a premium, that is, the cost of your policy.
There are fixed factors and consumer profile factors, which vary according to the claims statistics. For example :
• place of residence
• age of home, roof, plumbing, etc.
• date of the last renovations
• type of heating
• past claims and credit file
• driver’s age
• type of vehicle
• place of residence
• use of the vehicle
• Credit Report
• driving record and claims made.
How to save on your home and car insurance?
The best way to save on your insurance policy is to shop! You can get various quotes from several insurers or call a damage insurance broker who will offer you some options from his insurance network.
In addition to shopping for the best insurance policy, here are some other tips that can reduce the amount of your premium.
2. Find out about special rate covers or programs
The clubs, the personal and professional associations of which you are a part or the schools which you attended may have an agreement with certain insurers. Validate with your agent or damage insurance broker.
The same goes for your profession. Some insurance companies develop a niche to stand out and offer promotions for a particular type of job, such as the nursing profession or the engineering profession.
3. Notify the insurer of your use of your car
If you do not intend to use your vehicle to go to work, notify your property and casualty insurance professional. The amount of the premium can also vary with the number of kilometers made with your car. Also find out about the opportunity and benefits of participating in a usage-based pricing program through telematics, for example.
4. Take the necessary safety measures
Installing an alarm or theft prevention system can also help reduce your insurance bill for both the car and the home.
5. Combine your insurance
By combining your home and auto insurance with the same insurer, you could benefit from an additional discount.
6. Increase the deductible
One of the frequent tips to save on your car or home insurance is to increase the deductible, that is to say the amount to pay in case of disaster. However, before making this choice, evaluate your ability to absorb the cost of the franchise in the event of a disaster.
7. Select the guarantees included in the contract
Lastly, the guarantees offered in your contract cause your premium to fluctuate. You could opt for a “basic” insurance rather than more comprehensive insurance, but know that then, you will assume part of the risk in the event of damage. Also note that depending on the circumstances (long-term rental car or presence of a creditor), you may not be able to withdraw some coverage. Do not hesitate to ask different alternatives to your agent or your damage insurance broker who can offer you the best protection adapted to your needs. These professionals supervised by the Damage Insurance Chamber are trained to answer your questions and advise you on the most appropriate protection for your needs.