To find out what types of auto insurance discounts Canadian drivers can avail of, Insurance Business checked out the policies of some of the country’s top car insurance providers. Here are the most common rate-reduction schemes these companies offer. The list below is categorized into discount types.
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1. Bundling discount
All insurers considered for the list offer discounts for policyholders who combine different insurance products. Bundling auto and home insurance with the same provider, for example, allows homeowners to slash up to 20% from their car policies. Tenants can also combine their auto and renters’ insurance to save on premiums.
2. Multi-vehicle discount
Another popular money-saving perk, insurance companies typically reduce premiums by as much as 15% for households insuring more than one vehicle.
Price comparison website Lowestrates.ca describes this type of rate reduction as a “win-win” for both the policyholder and the insurance provider as “[the insurer] gets more of your business, and you get a discount.”
3. Group discounts
Some insurers offer group rates for drivers holding memberships with an eligible group, which may include the company they work for, a professional or occupational association, non-profit or charitable institution, or union membership. Belairdirect, Co-operators, RSA, and Sonnet are among the auto insurance companies that provide this type of discount to policyholders.
4. Loyalty discount
Several car insurance providers reward loyal customers with reduced rates come renewal time. Typically, the longer motorists stay with their insurer the higher the discount. Economical, Peel Mutual, The Personal, and Wawanesa offer this type of discount. Peace Hills offers policyholders premium reduction if they remain with the insurer for at least three years while L’Unique gives drivers who opt for a two-year policy a guarantee that their rates will not increase