What Is An Insurance Discount?
An insurance discount is an opportunity for you to save on your home insurance and auto insurance premiums. Some common insurance discounts include, mortgage-free discounts, good driver discounts, winter tire discounts, claims-free discounts, retiree discounts, and bundled home and auto discounts.
Each insurance company offers its own variety of discounts. There is often criteria that the customer needs to meet in order to receive property insurance discounts and auto insurance discounts. In some cases, insurance savings discounts are automatic if you qualify. The more discounts you can apply against your insurance premium, the more you will save on your insurance. Insurance savings will vary.
An important thing to note is that many of these insurance discounts are built into the base insurance premiums, especially with individualized insurance rating. Meaning, these are not necessarily insurance discounts the customer will see written on their policy. Many companies also cap the discount amount that an insured can receive.
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Are you a good driver? Are you recently retired? Are you driving fewer kilometres than you used to? Did you complete a driver training course? Did you install a security alarm in your home? Are you mortgage-free? Do you have an unfinished basement? Do you have a water alarm?
There are dozens of home and auto insurance discounts available from insurance companies. Some savings are small, others are larger. The total insurance savings can be substantial, and we want you to get all the money-saving discounts you deserve.
What Are The Most common Home Insurance Discounts?
If you own your home in Ontario, you have several potential insurance discounts available to you, including discounts for being mortgage-free, for having a brand new home, an unfinished basement, a water alarm installed, for being a non-smoker, in addition to many others. Listed below are the details of all home insurance discounts that are available.
Fire & Burglar Alarm Insurance Discount
If you have a monitored alarm system in your home, many of our insurance companies offer their customers a discount. You may be required to provide a copy of an alarm certificate to qualify. The fire and burglar alarm discount offers insurance savings between 5% to 12%.
Mortgage-Free Insurance Discount
Are you mortgage-free? That great mortgage-free feeling can be extended to home insurance savings. This can typically save you between 5% to 20% on your home insurance.
Multi-Property Insurance Discount
When you have multiple properties insured with the same company, insurance companies will thank you by offering you insurance savings anywhere from 5% to 15% depending on the insurance company.
New Home Insurance Discount
If you have a newly built home, you can typically save between 10% to 20% on your home insurance. This insurance saving may vary depending on the age of your home, such as if your home is 20 years old or 5 years old.
Non-Smoker Insurance Discount
As non-smokers, you are less likely to have an accidental fire, so if no one in your home smokes – indoors or outdoors – let our insurance brokers know. The non-smoker discount can save you up to 5% on your home insurance.
Shuttle Tanker Insurance Discount
If you live within about 8 kilometres of a shuttle tanker-accredited fire hall, this discount may save you up to 5% on your home insurance premium. The reason for this insurance savings is firefighters can bring large loads of water quickly to your home in case of fire.
Unfinished Basement Insurance Discount
Is your basement concrete with studded walls? Many of our companies offer home insurance savings for customers with an unfinished basement. The reason is that in the event of a claim, it will cost less to repair an unfinished basement. The unfinished basement home insurance discount could save you between 5% to 15%.
Water Alarm Insurance Discount
If you have an alarm for detecting water in your basement, let your insurance broker know as this can save you money on your home insurance. The water alarm home insurance discount (also known as water detection discount) is typically worked into the overall insurance premium. Still, it can mean savings between 10% to 30%.
Water Mitigation Insurance Discount
Do you have a septic system? A sump-pump? Both of these are factors to help lower your insurance premium. Having a septic system and a sump pump reduce your likelihood of having significant water damage to your home. The water mitigation discount can range between 5% to 40%, depending on the mitigation methods you have in your home.
What Are The Most Common Car Insurance Discounts?
If you own a vehicle in Ontario, there are many potential insurance discounts available to you. Some of these include, driver training discounts, short-distance commute discounts, winter tire discounts, autonomous emergency braking discount and hybrid car discounts, in addition to many others. Below are additional details for car insurance discounts that are available to you.
Autonomous Emergency Braking Insurance Discount
This discount applies to you if your vehicle is equipped with technology to automatically apply the brakes when necessary. This discount is rolled into the overall premium of a vehicle. The autonomous emergency braking discount ranges between 10% to 15% savings on home insurance.
Conviction-Free Insurance Discount
Insurance companies provide a discount when you have had no tickets in the past 3 years. The conviction-free discount varies among insurance companies and is usually built into the overall premium. It is often a saving of around 15%. Some companies offer Minor Conviction Protection to help protect your insurance rates from rising in the event of your first ticket.
Driver Training Insurance Discount
When you first start driving, and you take a driver training course, this can help you save on your auto insurance. The driver training discount on auto insurance is only valid within the first 3 years of having taken a recognized driver training course.
Dual Insurance Policy Insurance Discount
A dual policy discount is offered by many insurance companies. If you live in the same home, some insurance companies will give you savings for having multiple vehicles. An example of this is if you have a licenced son or daughter living in your home. Usually, the dual policy discount is about 10% savings on your auto insurance.
Good Driver Insurance Discount Programs
Are you a good driver? Do you drive safely? Good drivers can be rewarded for their excellent driving with auto insurance savings up to 30% on their auto insurance. Some insurance companies offer discount programs in which customers’ premiums are calculated on their safe driving habits. An insurance broker can explain details of these programs to you, and get you enrolled. A discount will be immediately provided to the insured – usually between 5% to 10% in savings – for enrolling in the program.
Some factors that determine a driver’s discount include distance driven, speeding, driving at more risky hours, distracted driving, acceleration rates, and hard braking. Driving habits are tracked and calculated, which you can monitor on the app. The more safely you drive, the more you can save, to a maximum amount stipulated.
Graduated Licence Insurance Discount
The graduated licence discount is offered to drivers as they progress from G1 to G2, and then again from G2 to G. The auto insurance saving from the graduated licence discount is about 10%. It only lasts for one year, so it is best to get your full G as soon as possible.
Hybrid Car Insurance Discount
Our companies like to thank you for driving a green vehicle and looking after the environment. If you drive a hybrid car, this is an included discount from the insurance company that insures your vehicle. You can usually receive up to 5% in auto insurance savings.
Mature Driver Insurance Discount
Some insurance companies offer a discount to mature drivers. If you have a good driving record, you can get savings between 5% to 15% on your auto insurance.
Multi-Vehicle Insurance Discount
To qualify for the multi-vehicle insurance discount, you need to have more than one vehicle on your auto insurance policy. The multi-vehicle insurance discount is usually around 10% to 15% and may vary by the insurance company.
Retiree Insurance Discount
The retiree insurance discount is available to you once you have been retired for at least 6 months, with no additional income, other than your pension. The retiree insurance discount is usually a savings of 5% on your auto insurance.
Short-Distance Commute Insurance Discount
If your commute to work is less than 5km one way, many insurance companies offer savings on your premium.
Student-Away-At-School Insurance Discount
When your child moves away to school, at least 100km from home, some insurance companies will give you a discount for that driver since they do not have access to the vehicle(s). If the student has had a claim, this savings does not apply. If they take a vehicle with them, let your insurance broker know to update the garaging address of that vehicle.
Winter Tire Insurance Discount
To qualify for the winter tire insurance discount, you need to have winter tires installed on your vehicle, not all-season tires. Winter tires usually have a mountain or triangle symbol with a snowflake on them.
Most insurance companies require that winter tires be on your vehicle from November through April. The winter tire discount varies from 2% to 5%, depending on the insurance company. Keep your receipts from the purchase of the tires and installation of the winter tires. These may be required by the insurance company.
What Are The Most Common Insurance Discounts For Your Home And Car?
If you own a home and vehicle in Ontario, there are many potential insurance discounts available to you. Some of these include, bundled home and auto discounts, claims-free discounts, loyalty discounts, and renewal discounts, in addition to many others. Below are additional details on some of the home and auto insurance discounts that are available.
Bundled Home And Auto Insurance Discount
The best way to save on your personal insurance is to have both your home and auto insurance with the same company. By having your home insurance and auto insurance with one insurance company, you can save between 5% to 15% on your home and auto policies. Note that savings vary among insurance companies. For details on criteria and savings, contact an insurance broker.
Claims-Free Insurance Discount
Are you a good driver with no claims? Good for you! You can save on your auto insurance. Most insurance companies offer a savings between 5% to 10% on your auto insurance if you are claims-free.
Loyalty Insurance Discount
Insurance companies appreciate when customers are loyal to them. Loyalty insurance discounts are a way to say thank you for your continued business. Auto insurance savings for being a long-standing customer are between 5% to 10%.
Mature-Age Insurance Discount
Mature-age insurance discounts and seniors insurance discounts generally range between 5% to 15%. Typically these auto insurance savings are available automatically to those over 60 years of age.
New Business Insurance Discount
While our insurance companies value your loyalty, they also understand that you may want to insure with a different insurance company. If you are a new customer to an insurance company, you may qualify for the new business insurance discount. Some companies offer up to 5% savings on auto insurance to new customers.
Renewal Insurance Discount
An insurance renewal discount is another way for companies to say thank you for staying loyal. The renewal insurance discount ranges between 5% to 15%. The discount depends on the insurance company and how many years you have been insured with the company.
How Can I Get Insurance Discounts?
Contact an insurance broker. Insurance brokers represent multiple insurance companies and have access to a variety of coverages and discounts for your home and vehicles. Insurance brokers know which discounts are offered by different insurance companies and the criteria that must be met to receive the insurance savings.
We also encourage our customers to contact our Morison Insurance brokers whenever they think they may qualify for an additional insurance discount. An example of this is if you recently installed a monitored alarm in your home or you recently celebrated your 60th birthday.
While some discounts may seem limited in the amount of savings offered, discounts can add up to significant savings on your home insurance and auto insurance.
Some Things To Keep In Mind
Most insurance discounts are built into the base insurance premiums, meaning customers may not necessarily see these discounts outlined on their policies. Many companies also cap the discount amount that an insured can receive.
There are also circumstances where a customer may qualify for a particular discount and later does not qualify. An example of this would be when a customer receives a multi-vehicle discount and gets a ticket. The customer may not only lose their conviction-free discount, but they may also lose the multi-vehicle discount due to having a conviction. The result may be the loss of multiple discounts and can add up to increases in insurance premium.
Companies set criteria for auto insurance discounts and home insurance discounts. Standards differ among companies and can be complicated. We advise that you speak with an insurance broker about these discounts and the criteria set by the insurance company you are insured with. We are happy to answer any questions you may have, explain details, and help with your insurance in any way.
This blog is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.