Car insurance

You may find that your renewal price has increased, even if there has been no change in your circumstance or car.

But that doesn't mean your renewal price is the best deal. You should compare prices from different insurers to see how much you could save by switching. You could try different comparison websites, or find quotes through an insurance broker.

Note that insurers can charge a different price through different channels. As an example, one comparison site might be lower than another comparison site. Always try different sites to find the best deal.

Your renewal notice from your insurer should show you the new price for the next year and the date your renewal will start. You will likely receive this around 30-45 days before your current policy ends.

It's best to start shopping around for quotes once you receive your renewal notice. As a general rule of thumb, insurance becomes more expensive the closer you get to the date you need the policy to start.

To find the best insurance quote, usually means trying different options that could bring the price down. One such option is adding a secondary or a "responsible" driver to the policy.

If you are deemed a high-risk driver and you add a much lower risk driver to your policy, it can bring down the overall risk and you might get a cheaper quote. Someone with good driving history can make quite a difference.

WARNING: Do not add someone as the primary driver if they are not. This is known as Fronting, which is against the law and is a form of insurance fraud. If caught lying or deceiving by your insurance provider, you can face criminal charges. You'll have a criminal record impacting your ability to apply for credit, housing and jobs.

The job title you choose on your insurance quote can sometimes save you cash. As an example, a PA might be cheaper than choosing secretary. There are often many potential job titles that could describe your job. Try different titles to see if a quote works out cheaper.

Don't lie though, as this would be considered fraud. If you don't have a job, you might find your quote increases by declaring you're unemployed.

Consider a multi-car policy if you have more than one car in your immediate family or household. It's possible to save between 10-20% on an annual premium when insuring multiple cars.

If you've got a quote for separate car and home insurance, it's worth checking whether to combine them. A car/home insurance bundle may not be cheaper, but it's worth checking with an insurer what discounts may apply if you have another policy with them.

Note that if you have one policy, a claim for either your car or home may push the price up when you have to renew at the end of the year.

You could think of a monthly payment for insurance as a high-interest loan. As an example, your premium is $1000 and you decide to pay monthly. You could pay $100 a month, which works out at $1,200 for the year; an additional $200 more.

Some insurers offer a discount on your premium if you pay annually, even bi-annually. The added bonus is that you avoid the risk of missing a monthly payment and having your policy canceled, or an NSF fee from your bank.

If your current policy doesn't provide the coverage you need, it is possible to switch insurers during your policy. But you might incur cancellation fees or penalties for doing so. You should find out what the penalty will be before you cancel. 

If you decide to cancel and you paid annually, you'll usually get a pro-rata refund for the remainder of the policy (if you haven't made a claim). If you pay monthly, you'll stop paying your current insurer and start payments with the new one.

You should understand whether the savings from switching insurers outweigh the cancellation fee. As a rule of thumb, the longer you've got on your existing policy, the better you'll be for switching.

You should also understand if your current insurer has a notice period for canceling. This will determine the date of when your new policy will start, so there won't be any time when you're uninsured.

There are different consequences for driving without car insurance depending on where you live. In Quebec, you must buy insurance from a private insurance company and through Societe de L'assurance automobile du Quebec (SAAQ). Without insurance, you may receive a fine if caught. Causing an accident may result in losing your license.

In Ontario, you must buy insurance through a private insurance company. Without insurance, you may receive a fine between $5000 and $25,000 the first time you are caught. The next time, fines start at $10,000 and your license could be suspended for one year.

If the vehicle has at least two wheels and a motor (diesel, electric, gas), it must be insured. This can also include farm vehicles; all-terrain vehicles (ATVs); all-terrain cycles (ATCs); dirt bikes; snow vehicles; and motorhomes.

A deductible is the amount you will need to pay of a bill. As an example, if you incur $5000 in damages and your deductible is $1000, your insurer will cover $4000 of the bill.

Usually a lower deductible will result in a higher premium, as opposed to a higher deductible.

Some comprehensive policies insure you (not as a named driver) if you're driving a family member or friend's car (with their permission). You should check with your insurer that you are covered in this scenario.

Note that whilst your comprehensive policy may allow you to drive other vehicles, the coverage may be limited. You should again check with your insurer the level of coverage that is provided in this scenario.

If the modifications are to protect your vehicle, you may find that your premium comes down in price.

In general though, modifications (except for security ones) will likely increase your premium. You should make your insurer aware about the modification and who made them. It's possible the modification may invalidate your policy.

Generally, the less you drive, the cheaper your premium. You need to give a genuine, reasoned estimate to avoid committing fraud; but it's also important not to overestimate as you'll then overpay.

A good starting point is if you drive to work every day; how far do you go? Then factor in any weekend and holiday drives you are likely to take.

As an example: let's say you drive every day to work. A round trip (to your workplace and back home) is 20 kilometers. So in a week that is 100 kilometers. If you consider two weeks of holiday a year, then you'll be driving at least 5000 kilometers a year to work. Factor in weekend and holiday drives, and your estimate could be between 6000 - 7000 kilometers.

Yes, it's important to tell your insurer. If you don't and then try to make a claim (for an unrelated issue), you may find that the policy becomes invalid, and so the claim is rejected.

A change in circumstance could be moving jobs; living with a partner; changing address. Yet you must still tell your insurer to avoid potential problems later on should you need to make a claim.

It can be very difficult and expensive trying to get insurance if you've had your policy canceled.

This will depend on your insurer. You're likely to incur a fee if you add an additional driver or add, or remove extra coverage.

Even a temporary or short-term change may incur a fee to reverse the changes. Consider what you'll be charged against the savings you could make.