Driving a car is expensive. After you drive your brand-new car off the lot, the expenses don’t end there. There are a slew of costs you’ll have to deal with, including fuel costs, repair and maintenance, license and registration, and car insurance. The average annual cost of driving a car is a whopping $10,456, according the Canadian Automobile Associate (CAA). That’s a lot of money!

As a motorist you should look for ways to save money where you can. A lot of motorists see their car insurance as a fixed expense, but that couldn’t be further from the truth. Here are five easy ways to save on your car insurance.

 1. Shop the Market

Similar to your mortgage, it pays to shop around. Saving just $10 a month can lead to hundreds of dollars  saved over the life of your car. Each insurance company has its own way of calculating insurance premiums. You may be able to find the same coverage – or better – for the same amount of premiums. Shopping the market is easier than ever today – request quotes online from the comfort of your own home in less than 5 minutes.

2. Raise Your Deductible

Your deductible isn’t written in stone. By raising your deductible, you can save a lot of money. For example, by raising your deductible from $300 to $500 you could save 10% on your premiums. Before raising your deductible, ask yourself if you could afford to pay the higher deductible out of pocket. If the answer is yes, then upping your deductible is a good way to save money.

3. Insure Your Home and Car Together

Are you a homeowner? If so, you’ll often receive a discount for protecting your home and car with the same insurance company. In fact, most insurance companies offer you a 5-10% discount off your total insurance bill – not bad! Do you own more than one vehicle? You’ll often receive a discount for insuring more than one car under the same policy.

4. Choose Your Car Wisely

The make and model of your car has a big impact on your insurance rates. Why? Because insurance rates are based on the average cost of claims. The more likely motorists are to make claims, the higher the premiums. That’s why you’ll often pay through the nose for insuring a sports car. It’s a good idea to ask your insurance company how much your insurance premiums would be before you drive your brand-new car off the lot to make sure you can afford them.

5. Group Plans vs. Individual Plans

Just like health insurance, you can save money by purchasing your car insurance through a group plan instead of an individual. Your employer may car insurance at a discount through a workplace plan. You can also find cheaper rates if you’re part of a union, alumni association, or even CAA.

Source: http://rates.ca/guidelist/car-insurance

Sean Cooper is the bestselling author of the book, Burn Your Mortgage: The Simple, Powerful Path to Financial Freedom for Canadians, available now on Amazon and at Chapters, Indigo and major bookstores, and as an Audiobook on Amazon, Audible and iTunes.