We are Living in High Cost Times. What You Can do to Reduce Insurance Costs
We are Living in High Cost Times. What You Can do to Reduce Insurance Costs
Just a Sign of the Times . . .When Harry Styles sings ‘Just stop your crying, it’s a sign of the times’ - sure it might be catchy, but the unwanted sign of the times we’re referring to here is the soaring cost of living across Canada - so actually yes, some crying is to be expected.
While living in Canada certainly comes with its benefits, the reality is, it is still an expensive place to hang your hat.
That’s why finding ways of both sustaining our income, has become a top priority for many BC residents.
It likely also comes as no surprise that two of the main contributors to the high cost of living is homeownership and maintaining and operating our vehicles. From climbing gas prices to high-reaching home heating, cooling and renovation costs, not to mention the many more daily financial challenges – we certainly have been feeling these burdens much more as of late.
Turning our focus back on the bright side for a moment, Canadians are also highly resourceful people. We continue to look for realistic avenues where we can reduce our expenses.
That said, one main way you can do this is by exploring ways to save money on your insurance.
With insurance being pretty much a given, let’s visit some additional ways you can save on your insurance – as well as how your insurance broker can help you along the way.
How to Save on Your InsuranceHome Insurance
With home insurance typically being one of the most expensive areas of coverage you will face, you also have the potential to reduce your costs.
A lot can change in a year, so it is best to evaluate your insurance on a yearly basis to ensure you have the right amount of coverage for your needs.
This is a great opportunity to lower your fees by removing areas of coverage that simply might no longer be needed. In many cases, there is no point in paying more for your policy by over-insuring your home and personal belongings.
By taking an active approach, you can review your policies regularly with the help of your broker. Not only can they go through the finer details of your policy with you, they can also shop around and find the best coverage options for your specific needs.
Vehicle Insurance
When it comes to reducing your car insurance, BC companies don’t compete for insurance, so auto policy rates are typically the same across various brokers. Fortunately, you can still save some money by doing everything you can to avoid accidents and by practicing safe driving as this can lower the amount of claims you are likely to have to make.
If, for example, you are someone who is unlikely to have to make claims very often, one additional step you can take to reduce your insurance costs is to increase the amount of your upfront deductible payment.
It is again a good idea to discuss your options with your insurance broker, as they can recommended a plan that is both realistic and unique to your individual driving situation.
How to Save on Both Home and Vehicle Insurance
While some similar steps can be taken to reduce your insurance across the board, another beneficial method of lowering your car insurance costs, is to look for discounts that you may be eligible for. Some of these include: low-kilo-meter, safe technology, senior savings, and experienced driving discounts.
In terms of both home and car insurance policies, you may also want to consider bundling both of them together – saving you some additional money in the process.
By reviewing your insurance annually for all insurance areas, your broker will help to ensure you have the most suitable insurance coverage that will adequately address many of top financial concerns.
The Bottom Line is…
The most important take away here is that, when it comes to the dark cloud that is the current costs of living – you do have options to save money at a time where it really matters. You just have to know where to look, and in this case, who to ask for help.
Leaders Insurance ‘puts the who’, in who you can turn to for assistance. And when it comes to the current uniqueness of the times we are living in, our insurance brokers can point you in the right direction by finding unique solutions to your individual insurance needs.
ICBC is Making Changes to Vehicle and Sales Taxes
ICBC is Making Changes to Vehicle and Sales Taxes
Are you in the market for a new vehicle? Well - new used vehicle that is. With a backlog of issues affecting production lines for new vehicles, Canadians have been turning to the used car market more and more.In BC, however there are new implications occurring this fall that will impact the price you are likely to pay for your used vehicle. As per the article by Vancouver Island City News, BC drivers can expect to be charged more sales tax on the their purchase.
With typically high costs already associated with owning and operating a vehicle, BC car owners, should anticipate having to pay a bit more for their vehicles.
Here is the breakdown of these changes and how it is likely to impact your finances.
As of October 1 of this year, the BC government has imposed changes to the sales tax on private sales of used vehicles. Moving forwards, these rates will be calculates based on the wholesale or Black Book value of the vehicle, regardless of the price the seller has listed it at.
This means, if the set asking price is $15,000, however the vehicle’s Black Book value is $17,000, you will have to pay PST rates on the Black Book price, not the seller’s price.
When it comes to buying a used car at the wholesale value, there is another important issue that BC residents will need to be aware of. If you are paying the seller $15,000 for the vehicle, and you already know that the taxes will be based on the wholesale value, not the private sale price, you will also want to make sure that the vehicle is in good condition and is actually worth buying at that amount.
It isn’t uncommon for previously owned cars can be sold with damage that isn’t always made known to the buyer. Even if you know upfront about it’s condition, this means you may still be having to pay extra for additional repairs on top of everything else.
ICBC maintains that these changes have been set with the intention of saving money, while protecting the market against cases of fraud. That being said, this increase will have implications for car buyers, especially those with lower incomes, those perhaps, who are trying to shop around for an affordable deal on a used vehicle.
Additionally, the BC government has stated that it will be a rarity that a used car will go for lower than the wholesale price. That said, if this does happen, buyers are entitled to pay for a mechanic to appraise the actual value of the vehicle through an assessment of its current condition, and can then apply for a reduced sales tax payment.
However, this is yet another payment that you can expect to pay out of your own pocket. This again reinforces the importance of paying close attention to all of the costs that will associated with the purchase of your used vehicle, so that there aren’t any added surprised when it comes to the amount you will need to pay overall.
Insurance rates are also always a hot topic, as BC residents are already paying an awful lot to drive their cars.
The reality is that many BC residents rely significantly on the use of a vehicle for personal and professional use, and these increased sales tax rules will affect their livelihood – and their daily commute.
One bright spot in these days of rising car prices – new and used, is having the support of your insurance broker.
Your Leaders Insurance broker can help you navigate these changes and assist you in finding the most affordable and most appropriate car insurance for your personal and business needs.
Especially these days, when we can all benefit from saving a bit of extra money – your broker can be an excellent resource in helping you achieve this goal.