Understanding Drive Down Insurance: What You Need To Know

DriveDown is a Farm Bureau Insurance deductible rewards program that allows customers to save on their deductibles as a reward for driving safely. Driving safely and keeping a clean record are some of the most important things one can do to keep their insurance rates low. Distracted driving, including the use of social media while driving, is a leading cause of collisions in Canada. By driving safely, one can help to drive down their insurance rates.

Characteristics and Values of Drive Down in Insurance

Safe driving rewards

One example of a safe driving rewards program is Progressive's Snapshot program. Snapshot personalises your car insurance rate based on your actual driving behaviour. It considers factors such as how you drive, how much you drive, and when you drive. Drivers who participate in the Snapshot program can receive discounts and save money on their car insurance.

Another example is the DriveDown program by Farm Bureau Insurance. DriveDown is a deductible rewards program that allows customers to save on their deductibles as a reward for driving safely. To participate, drivers need to download two free apps: MOBILE agent and Routely. The Routely app records your trips and tracks your driving behaviour, while the MOBILE agent app provides access to your Farm Bureau Insurance account and allows you to enrol in the DriveDown program.

By participating in safe driving rewards programs, drivers can not only save money on their car insurance but also contribute to a safer driving environment for themselves and others on the road. These programs encourage drivers to follow speed limits, avoid distractions, and maintain a safe distance from other vehicles, ultimately reducing accidents and fatalities.

Compare insurance prices

Comparing insurance prices is a great way to save money. Insurance can be expensive, but with a few proactive steps, you can help take control of your premiums.

Firstly, it is important to understand that insurance companies look at similar factors to determine rates, but each company has its own quoting methodology, which can result in differences in rates among insurers. Therefore, it is beneficial to compare car insurance rates from different companies to find the best price and coverage for your needs. When comparing rates, ensure that your coverages, limits, and deductibles match up across companies. It is also important to consider the reputation of the insurance company.

There are several ways to compare insurance prices. One option is to use a comparison website or app, such as NerdWallet, The Zebra, or Compare.com, which allow you to compare rates and quotes from multiple companies side-by-side. These tools will require you to input some basic personal information, such as your date of birth, address, and driving history, as well as information about the vehicle(s) you want to insure. After providing this information, you will be able to see a list of insurance options with their respective rates, which you can then compare to find the best price and coverage for your needs.

Another option is to use an insurance rate comparison tool offered by individual insurance companies, such as Progressive's AutoQuote Explorer® tool. This allows you to compare your quoted rate against rates from different companies. You can also vary each quote to see how your premium changes when you add or remove coverages.

Additionally, it is worth noting that bundling multiple policies together, such as auto and home insurance, can sometimes offer discounts and convenience. However, it may also be beneficial to compare prices and coverages by purchasing your policies from separate companies.

By taking the time to compare insurance prices and coverages, you can find the best value for your needs and save money on your premiums.

Drive less

Driving less can help you save money on car insurance. This is because the less you drive, the lower your chances of getting into an accident and making insurance claims.

Pay-As-You-Drive (PAYD) insurance plans are designed for people who don't use their cars often. With PAYD, you pay based on the number of kilometres you drive in a year, which is usually limited to 10,000 or 15,000 km. This usage-based insurance can offer up to a 25% discount on your premium, and you can save up to 85% on your car insurance with certain providers.

To get started with PAYD, you can download an app that records your trips and calculates your premium based on the kilometres driven. Some apps allow you to set an annual driving limit, while others let you \"switch off\" your policy on days you don't drive, earning you bonus days. PAYD can be especially useful for people who work from home, use public transportation, or have multiple cars.

In addition to PAYD, there are other ways to save on your car insurance if you drive less. You can increase your deductible, which is the part of the loss you pay when making a claim. A higher deductible leads to a lower premium. You can also consider dropping collision coverage on older vehicles, as insurance will still cover the damage to the other person's car in the event of an accident.

Remove unnecessary drivers from your policy

One way to drive down insurance rates is to remove unnecessary drivers from your policy. This can be achieved by reviewing your policy and identifying any drivers who are no longer using the insured vehicle or who may only be using it infrequently. By removing these drivers, you can reduce the overall cost of your insurance. This is because insurance companies take into account the number of drivers and the risk associated with each when calculating premiums.

It is important to note that this strategy may not always result in significant savings, especially if the removed driver has a good driving record or other positive factors that contribute to lower rates. Additionally, it is crucial to ensure that anyone who still drives the vehicle is listed on the policy to maintain proper coverage.

When removing a driver from your policy, contact your insurance provider and provide them with the necessary information, including the name and driver's license number of the individual to be removed. They may also require you to fill out a form or provide additional documentation. It is worth noting that the process may vary depending on the insurance company and your location.

In some cases, removing a driver from your policy may not be a straightforward process. For example, if the driver is a family member or spouse, the insurance company may require additional steps or have specific guidelines to follow. It is always best to consult with your insurance provider to understand the specific requirements and ensure a smooth removal process.

By taking the time to review and remove unnecessary drivers from your policy, you can actively contribute to managing your insurance costs and ensuring that your coverage aligns with your current needs.

Insure multiple cars under one policy

One way to drive down insurance costs is to insure multiple cars under one policy. This is known as multi-car insurance, and it can be a good option for households with more than one vehicle. It usually offers the same features as a single-car policy, but you may receive a discount on the second vehicle and any additional cars. The more cars added to the policy, the bigger the discount is likely to be.

Multi-car insurance can be a convenient way to manage your insurance, as you only have to deal with one insurer instead of several. It can also make it easier to manage paperwork and any claims. Renewal dates are synced for all policyholders, so you won't have to manage multiple renewal dates. Each driver retains their no-claims bonus, so if someone else needs to claim, your bonus shouldn't be affected.

However, there are some potential drawbacks to consider. Putting a less experienced driver or someone with motoring convictions on your multi-car policy could increase the overall cost. In some cases, it may be cheaper to insure your second car separately. This might be the case if the named driver of the second car is considered high-risk, such as a young driver, or if you own a specialist vehicle.

Additionally, some multi-car policies only cover vehicles kept at the same address, although there are insurers that will cover cars from multiple addresses. It's important to carefully review the terms and conditions of the policy to ensure it meets your needs.

Frequently asked questions