Why does insurance never go on sale?

It seems like every time you turn around, there’s a hot deal that’s almost impossible to ignore. Whether it’s an email from your favourite store introducing new clearance items, a billboard advertising a discount from a local internet provider or a flyer in your mailbox with a coupon for your next oil change.

You shop around for insurance like you do for other products and services, but have you ever wondered why it’s never on sale? Let us tell you why by breaking down how insurance companies set the cost of insurance and issues surrounding government regulations. Although you won’t find insurance on sale, we’ll let you know how you can get the right coverage you need so you’re not spending money where you don’t need to be.

How do insurance companies set the price of car insurance?

Some factors that determine your insurance rate are in your control and others are not. Here are some of the factors that are in your control:

• Your claims history and driving record
• Driving violations like speeding tickets
• New drivers added to the policy
• Cancellation of home policy (if you have a bundled policy)
• The removal of a vehicle from the policy
• Change of employment
• Medical conditions that increase your risk
• Re-classification to high-risk insurance due to convictions like driving while impaired
• Changes to the payment plan fees or structure on your insurance plan

There are also external factors that impact the cost of car insurance. The following may cause the price of your insurance to go up:

• An extreme weather event that results in a large number of claims
• Collisions, vandalism or increased claims in your area
• An increase in car theft rates in your province or area, or for your vehicle model in particular

Key issues around regulations

Insurance brokers and agents are required to be licensed. This means you will be looked after by a professional who can identify your needs and determine if there are any gaps in your coverage. Going through a licensed insurance broker or agent makes sure you have the best possible coverage.

Provincial governments regulate car insurance. That’s why laws vary from province to province (That’s why it’s so important to let your insurance company know if you’re moving provinces).

Even though insurance doesn’t go on sale, there are several ways you can save on your car insurance. If you’re wondering how to save money on your insurance bill, check out these tips:

How you can reduce your car insurance cost

• You may be able to help decrease your car insurance premium by taking on more responsibility. This will decrease the risk you pose to your insurance company. Speak to your broker about increasing your deductibles. Keep in mind that doing these things could increase your personal financial burden after a car accident.
• Bundling your auto, home and additional insurance policies with the same insurer can save you up to 25 per cent.
• Take advantage of potential car insurance discounts. You may be a member of a group or association that has a partnership with an insurance company or brokerage. If you are a member of a professional association check to see if there are any insurance discounts available. Discounts vary by insurer, so be sure to ask your advisor for more information.

Getting the Best Out of Your Premiums

Insurance rates can fluctuate over time, but you may be able to take some steps to help reduce your premium. Knowing some of the factors that insurers consider to set rates can help you make smart decisions about your policy and potential savings.

Without proper guidance, insurance can be a tad overwhelming. At BrokerLink, our specialists not only tailor a policy to fit your needs, but also work diligently with you to avoid unnecessary costs and exposures.

Why Does Insurance Never Go on Sale? FAQs:

How are insurance rates calculated?

Car insurance premiums vary widely. Insurance companies take a lot of different things into consideration when determining your rate. They’ll look at things like where you live and your driving record. To learn more, check out the Five Key Factors For Calculating Car Insurance Premiums.

Do I get a discount on my car insurance?

There are several ways you might be able to save on your car insurance policy. Some things you might want to consider are bundling multiple policies, increasing your deductible or enrolling in driving school. If you’d like to learn more, check out our list of tips and tricks that can help keep your car insurance bill down. Learn more about ways to save on car insurance in Canada.

What can I do to make sure that I have enough insurance?

BrokerLink’s community-based branches are staffed with local licensed experts who are committed to customizing insurance solutions based on customer needs for their home, vehicle, business and more. Contact your local broker to make sure you have the insurance that meets your needs.