6 ways to cut your auto insurance rate

Click to play video: 'Insurance rates on the rise in Alberta'
Insurance rates on the rise in Alberta
WATCH ABOVE: Insurance rates are on the rise in Alberta after the government announced it will remove a cap on hikes. Jennifer Crosby sits down with Celyeste Power with the Insurance Bureau of Canada to talk more about the changes – Nov 14, 2019

Alberta drivers are bracing for auto insurance rate hikes in the double-digits after the UCP government cancelled a cap on rate increases.

The Insurance Bureau of Canada has some suggestions for fighting rising rates:

1. Shop around 

“There are 45 insurers operating in Alberta, and they will all look at each individual consumer differently,” says Celyeste Power, IBC vice-president Western.

“The best thing to do is shop around and ask some questions of your insurance representative.”

2. Bundle Up 

You can also see whether your current provider, or potential new provider, will award a discount if you buy multiple policies — like home and auto — through one company.

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3. Add a ‘Fit Bit’

Power also suggests looking into UBI, or usage-based insurance.

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“I call it fit bit for your car,” she says.

The IBC says several Alberta insurance companies offer UBI programs, which involve a device or app to monitor your driving, with rates tied to the results.

WATCH: New study says ‘Usage Based Insurance’ changes driving habits

4. Drop collision 

Power says going without collision coverage could especially be an option for drivers of less valuable older vehicles.

5. Fight Theft

Some insurance companies may give you a discount if you install a theft-deterrent system. Check with your provider to see if you could qualify.

6. Up your deductible

This is something that could cost you more should you make a claim, but also lower your annual rate.

READ MORE: Calgary businesses fearful as more auto insurers implement rate hikes

What is the industry doing?  

As an industry advocate, the IBC is pushing for regulatory change in Alberta like allowing “pay as you go” plans where rates would vary with mileage, as well as other flexibility.

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“In every other industry that you deal with, you can customize everything to your exact specification,” Power says. “In insurance, you can’t. You have two or three choices.

She adds that there are injuries that are considered minor in other jurisdictions, but not in Alberta. The IBC would like that to bring costs to insurers down by changing that too.

READ MORE:  Auto insurance premiums going up in 2020 for many Alberta drivers

“We believe money that hardworking Albertans are putting into the system should go toward care and taking care of people after an accident. It shouldn’t be on cash settlements.”

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