Everyone is looking to save money on their car insurance. Now there's a way to do just that AND be safer at the same time. Here's five things to know about the winter tire discount for auto insurance.
1. Queens Park announced in October that all Ontario insurance companies will need to offer a Winter Tire Discount by January 1st, 2016 for new policies and any that renew after.
2. The discount, while widely offered between 2 - 5% by insurers, is not a mandated percentage. The Financial Services Commission of Ontario (FSCO), which regulates car Insurance and who will enforce the discount, commented that it does not set insurance rates, and more specifically does not set the discount for winter tires.
3. Each company may have different requirements in order for you to qualify. Most specify you must have 4 winter tires (not necessarily brand new) installed on the vehicle during the winter months.
4. While the savings provided by the Winter Tire Discount may not offset the cost of a set of tires, the payoff is two fold. It’s proven that winter tires have a direct impact on probability and severity of collisions. Germany saw approximately a 50% decrease in winter collisions after making winter tires mandatory.
5. Even though we’re ahead of the January 1st deadline, there is a chance your insurance carrier may already offer the discount. Contact your insurance broker to find out when you can expect to see it added to your policy.
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