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How to cut car insurance costs

Understanding auto insurance can be difficult, with various policies and plans changing from province to province. But all drivers understand the desire to keep their costs as low as possible.

No matter where in Canada you live, there are some things you should keep in mind when looking to reduce your car insurance costs:

• Drive safely. Nothing drives up car insurance costs faster than accidents and moving violations. Too many violations mean that you could have difficulty even getting car insurance.
• Take a defensive driving course. Even if you've been driving for 30 years, a refresher course won't hurt, and it might reduce your insurance premium. If the teenage driver in your family takes a course, it could cut your extra premium costs by as much as 50%.
• Increase your collision and comprehensive deductibles to $500 or even $1,000. That's usually more prudent than reducing the amount of protection.
• Choose car models carefully. For example, four-wheel drive and sport-utility vehicles generally have the worst insurance records for theft, collision, comprehensive, and accident benefits. As a result, they cost more to insure.

YOUR MOVE. If you're renewing your car insurance, this is the right time to discuss these ideas. If you're in the market for a new car, the Vehicle Information Centre of Canada tracks insurance claims in its annual report. Copies are available by writing to the Centre at 175 Commerce Valley Drive West, Suite 220, Markham, Ontario, L3T 7P6.