Saving Money

Cutting Car Costs

Downsize: The cost to own and operate a vehicle varies greatly depending on the type of vehicle you drive, the distance you are driving and the maintenance on your vehicle. For example, according to www.Canadiandriver.com, base price for a BMW 528i is $59,900 with fuel consumption of 11 litres/100km city and 7.0 litres/100 km highway. The Toyota Camry Hybrid 4 cylinder sedan starts at $32,000 with fuel consumption of 5.7 litres/100 km highway and 5.7 litres/ 100 km city. Often times, you are paying for the name with a luxury car and it is not a practical purchase. Buy smart when you are investing in a car and do your homework.

Insurance

Not sure how much you’re paying for insurance? Not sure if you’re getting a good deal? You’re not alone. Many people stay with the same insurance company for years just because it is who they have always had coverage through. Take the time to shop for quotes periodically to ensure that you are getting the best deal.

Get A Good Deal: The cost of your insurance coverage can vary by as much as $1000 among different insurers, so it pays to shop around. Visit www.insurancehotline.com or www.e-insurers.com to get competitive quotes on your auto insurance. Contact at least three insurance companies for quotes. Ask about discounts if you have an anti-theft device or alarm, if you are a “non-drinker”, or you sign up for multiple coverage options (home owners, renters, etc). Also, check out the rating of the insurance company at www.ambest.com. AM Best Company is an independent organization that evaluates all insurers against the same criteria and rates them accordingly.

Lighten Up On The Lead Foot: According to Yahoo Canada, three out of five insurance companies that quoted rates raised rates once a client has one speeding ticket on their record. The rate increases ranged from zero to fifteen percent. After two tickets, rates increased anywhere from 24 – 66%. This cost increase does not include the out of pocket expense to pay the ticket either. Be aware of your speed when on the road and you could save yourself a lot of money.

Don’t Leave Yourself Exposed: Auto insurance can be expensive, but going without the right coverage can be financially devastating if you are in an accident. Make sure you understand the types of coverage and have enough insurance if, for example, an uninsured motorist hits your vehicle. If raising your total coverage makes your policy more expensive, consider raising your deductibles to offset the cost. Remember, the main reason to have insurance is to take care of losses you can not afford.