What to consider when getting car insurance for your household

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Finding an insurance policy that meets everyone’s needs can be tricky, but family car insurance can lead to discounts

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Buying car insurance for yourself can seem like a daunting task. But things get even more complicated when you have a whole family of drivers living under one roof.

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Each member of your household likely varies in age, gender, level of driving experience and type of car they drive – among others. These attributes all impact the type of insurance coverage they qualify for and the premium they pay.

Unsurprisingly, it can be difficult to find an insurance policy that is both affordable and meets everyone’s needs. But the good news is that family car insurance can also lead to discounts. Here are a few things to consider in order to simplify the process and better navigate your options.

Add Teen Drivers to Parents Insurance Policy

Given how little time they spend on the road, it’s no surprise that drivers under 25 face the highest insurance premiums of any demographic. This is why it is crucial for Young drivers to compare car insurance rates.

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Therefore, it is wise for teenagers to be listed on their parent’s auto insurance policy as secondary drivers. Although adding a driver who lacks road experience will increase the parents’ premium, it will result in a cheaper rate for them than if they had purchased their own policy.

Plus, it’s a great way for them to get the experience they need behind the wheel and build up a strong insurance record, which will allow them to get discounts on their own insurance at home. coming.

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Combine multiple vehicles under one policy

It is always cheaper to insure multiple cars under one policy than to get coverage for each one separately. Plus, it’s easier to manage and track because there’s only one payment to make each month and one deductible to pay when filing a claim.

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In general, the more cars you add to a family insurance policy, the higher the discount you can get. However, each insurance provider has a limit, so find out beforehand, especially if you are looking to add many drivers to the policy.

Be strategic when deciding which driver to assign to each car

By matching each driver to the vehicle that best matches their risk profile, you can significantly reduce your household’s total insurance premium expenses.

The optimal layout is allocate young and inexperienced drivers to older and cheaper cars because they cost less to repair or replace following an accident or other damage. Premiums for new drivers are already high to start with; listing them on older, inexpensive cars can help offset the amount they are paying.

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Conversely, older and experienced drivers should drive newer and more expensive cars, as they cost more to repair or replace. With seasoned road skills and a driving record free of at-fault claims, seniors individuals get more discounts on their policy, which helps counter the high premium.

Teenager taking a driving lesson with instructor
Teenager taking a driving lesson with instructor Photo by Getty

Select only the coverage you need and delete the rest

Assess the unique circumstances, risks and needs of your household to ensure that the policy you choose effectively provides the necessary protection for each member. For example, add a accident forgiveness endorsement to a teenager’s policy may be wise if he has recently started driving alone. This popular insurance enhancement protects drivers from increased premiums after their first at-fault collision.

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At the same time, remove any redundant coverage from your policy or avoid it altogether; otherwise, you’ll be paying too much for your insurance while reaping little or no benefit. For example, consider removing full coverage from older vehicles if the combined cost of the extra premium and deductible exceeds its market value. It may be more financially prudent to pay for repairs out of pocket than to file a claim with your insurer.

Finding the perfect car insurance plan for your family can be overwhelming if you don’t know where to start. Start by looking at your household’s existing auto insurance policy(ies) to see if there are ways to save. In addition to bundling multiple cars into one plan, there may be opportunities to get discounts that you previously overlooked. For example, student drivers can benefit from various discounts not available for older drivers.

However you structure your household auto insurance plan, make sure you alsoo compare quotes ffrom several insurance companies. This way, you can increase your chances of finding a policy that gives your family the coverage they need, without breaking the bank.

LowestRates.ca is a free, independent rate comparison website that allows Canadians to compare rates for various financial products, such as home and auto insurance, mortgages and credit cards.

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