If you feel like the price for everyday expenses keeps increasing, you’re not the only one. The cost-of-living for Canadians has been steadily increasing, from interest rates to the price of groceries. But there are ways to save money that you may not have considered.
Mortgage rates are rising at the largest yearly increase on records for Canadians (26.4% in March 2023), according to Statistics Canada. The numbers also indicate that although grocery prices may be increasing at a slower pace, they are still on the rise (9.7% increase in March). When many expenses are increasing, how can we save?
We spoke with Elliott Silverstein, Director, Government Relations (Insurance) about how to save on cost-of-living expenses. Did you know that car insurance that automatically renews may be costing you money? Here are ways that you can lower some everyday expenses.
The big topic these days is the cost-of-living and finding new ways to save. What’s a simple thing we do to lower our household expenses?
You’ll want to make a list of things that automatically renew, like subscriptions to apps, streaming services, magazines, online memberships, and even your insurance. Next flag the subscriptions that you never use, that automatically come out of your bank account. Many of us sign up for services, especially if there is a sale, and forget about them. But updating your subscriptions can add up to over a hundred in savings in a year.
The same goes for auto insurance. It typically renews annually without you doing anything but putting the new pink slip in your car, but that simple action could be costing you money.
As car insurance rates change frequently, taking a few minutes to compare policies and premiums for free is the best way to know if you’re getting the best price for the coverage you need. Car insurance policies generally have a one-year term. As your renewal date approaches, you will receive a letter from your insurer with an offer to renew, including an updated rate, policy documentation, and new proof of insurance certificate (the pink slips).
Once you receive this information, you can either accept the new price and renew the policy or switch to a different provider without being charged a fee. It is a good idea to take the time to shop around and compare your new policy’s coverages and options to your previous policy. If you do decide to switch, you will likely need to notify your existing insurer in writing that you are not renewing your policy.
How much could a person save by switching their insurance?
That really depends on the person, their driving habits and their driving record. But in many cases, they could save significantly on annual premiums. CAA Members save up to 20% with our competitive rates, too.
For instance, we recently heard from a Member named Kristen Kayseas, who said she recently changed over her auto insurance and saved $400 a year. Another Member, JoAnne McLean, saved about $500 a year on two vehicles. She told us she is retired and on a fixed income, so she really appreciated the savings. Her husband also switched and saved about $300. So, the savings vary, but they’re worth considering.
People’s driving habits have changed, especially as hybrid work becomes the norm. How can that impact your insurance?
Hybrid work where people are in the office some days but working from home for the rest of the week means we’re driving less than pre-2020. It’s coming back, but not to where we were in many cases. Your car insurance price is based on how far you’ll travel in a year, so that’s important to review it when you have lifestyle changes.
If you are driving less, AA also offers CAA MyPace™ for those who are driving less than 12,000 km annually. This can mean big savings for you. On average, CAA MyPace ™ policyholders save 50 percent on their auto insurance costs compared to a traditional policy.
Want to learn more?
Our licensed agent will review your driving history and other details to provide you with the coverage you need as well as some savings opportunities. They also can check that you’re getting the benefits and savings you deserve. You can contact an agent by calling 1-877-222-1717 or visit us online.