Did you know that nearly 30% of Ontario’s population rent their home or apartment? On top of that, nearly half of all renters in Ontario live in the Toronto metropolitan region. That’s quite a lot of renters!
There are various reasons why someone might rent instead of owning property. Some people might not want to be tied down to a specific place until they feel more settled, or they may not yet be in a financial place where they can afford to buy. Renting also implies fewer responsibilities: Most major repairs and maintenance jobs are the responsibility of the property’s owner, after all. However, there’s one thing every responsible tenant should bring with them when moving into a new rental: tenant insurance.
While tenant insurance is not legally required in the province of Ontario, landlords may still ask to see proof of insurance before choosing you for the lease. Tenant insurance also protects your personal property against damages, loss, and theft, while also covering any costs that arise from damages you or your guest may have caused to the building. This kind of protection can potentially save you thousands of dollars you might otherwise have to pay out of your own pocket.
However, this kind of insurance doesn’t come for free. If you purchase tenant insurance, you’ll have to pay monthly premiums for your coverage. Additionally, the amount of your premium may change depending on various factors, such as your claims history and where you live. However, that doesn’t mean that you can’t save on insurance. Here are 8 tips for reducing those monthly premiums.
1. Shop around
One of the best ways to find a good deal on tenant insurance is to compare quotes from different providers. Just like you’d shop around for the best price when looking for a new TV, a comparison of what’s on the market will help you find the best monthly premium for your needs. If that sounds like a lot of work, we’ve got some good news: With YouSet, you can compare quotes within minutes, all from the comfort of your desk or sofa.
All you have to do is answer some questions online and compare the policies we pick out for you, with the lowest price guaranteed. And once you find the right quote for you, you can easily purchase that policy online, right on our website.
2. Bundle policies
Many insurance providers may be willing to offer you a discount if you purchase multiple policies for different insurances with them. So say you’re looking for both tenant and auto insurance, and a provider you’re eyeing offers the coverage you’re looking for. If you offer to purchase both policies from that provider, they may be willing to give you a discount on your monthly premiums.
3. Ask to pay annually
Premiums are usually charged on a monthly or quarterly basis. But if you offer to pay ahead for a full year in one lump sum, insurance providers may be more willing to give you a discount for the overall amount.
4. Be mindful of where you choose to rent
Tenant insurance premiums are influenced by many factors, including where the rental property is located. Obviously, people can only control where they live to a certain extent since budget restrictions and work requirements don’t always make living in our dream location possible. However, neighborhoods with high crime rates and histories of flooding or wildfires will invariably drive your premiums up. Locations with low crime rates and solid infrastructure will be considered less risky by insurance providers, a fact that will be reflected in your premium. Living close to a fire hydrant, for example, can have a positive effect on your premiums.
Similarly, larger flats and homes with a lot of additional features will usually be more expensive to insure.
5. Increase your deductible
A relatively easy way to reduce your premium is by increasing your deductible. A deductible is a certain dollar amount that you have to pay out of your own pocket when filing a claim before your insurance kicks in. The higher your deductible, the lower your premiums. Just make sure you can still realistically afford to pay your deductible if a situation does ever arise where you need coverage.
6. Ask for a discount if you’re claims-free
If you haven’t made a claim with previous insurance providers before, you’re more likely to get a lower premium. That’s because insurers will consider you to be less of a risk if you’ve never made a claim before. So always make sure a claim is really necessary, or whether it’s worth paying out of pocket in order to keep your record clean.
7. Review your coverage
A large part of your premium is determined by the value of what you want to be covered. So if you want coverage for personal property worth $20,000, your premium is going to be higher than coverage for property that’s worth $10,000. That’s why it’s always a good idea to think carefully about what kind of coverage you need, and only get insurance for things that are truly necessary. Although it’s a bit more work up front, knowing how much you want to insure will help you save money in the long run.
8. Show off your (good) credit
Your credit score also impacts your premiums. For insurers, bad credit is associated with high risk, and you’ll have a harder time finding affordable premiums if insurers think you’ll cost them in the long run. But if you have good credit, the opposite is the case. So if you’re proud of your credit, then ask for a credit check, show off that score, and then see whether your provider will consider lowering your premiums. After all, good credit indicates a low-risk client, and there is nothing insurances love more.
As you can see, you don’t have to be stuck with the premiums you’re currently paying. And if you’re curious to see what else is out there, then YouSet can help you sort through the noise and find the policy that works for you, at the best price out there. Come check us out!
With YouSet, get a free online quote for an insurance that suits your needs and budget, in only 4 minutes!