Reduce Your Premiums With Winter Tires

Way back in January of 2016, the Ministry of Finance issued a statement that declared all insurance companies must offer a winter tire discount. This was mandated by the Ontario Government in 2014 as part of their commitment to reduce insurance premiums. Since then, switching to winter tires (when applicable) has been not only a great way to reduce your insurance premiums, but also helps keep you safer on the road.

Excalibur Insurance would like to provide you with some information regarding the winter tire discount and how winter tires may be of benefit to you and help keep your family safer when the roads start to get icy.

The Benefits of Winter Tires

Winter tires are great means of ensuring your safety when driving in poor conditions. A general rule of thumb is that you should switch to winter tires when the average temperature is below 7°C. This is because summer tires and all-season tires’ rubber tends to harden around this temperature, and therefore can no longer grip the road as well.

Why switch over to winter tires? Because:

• They offer superior traction to alternative, all-season tires with thin slits across the tread that grip onto ice and snow.
• They offer better braking, which can be difficult otherwise if drivers panic in slippery conditions.
• They provide better manoeuvrability over snow.

Is it expensive to switch to winter tires?

On average, winter tires can cost anywhere between $80 to $200 per tire. All-season tires, on the other hand, cost around $80 to $125 – which may seem like a better deal. However, all-season tires rarely hold up well in extremely warm weather and even worse in colder weather. In some temperatures, where there is little variability in temperature, they may suffice – but certainly not in Canada. If you rely on all-season tires, you sacrifice the discount and may end up having to replace your all-season tires after a few seasons of use.

All in all, having two sets of tires that are only used for six months at a time and last for six or more years is far superior to having a single set of tires, used all year, for only two or three years. Moreover, the improved safety and handling with winter tires and summer tires (switching when appropriate) is something that should not be overlooked.

Ontario’s Mandatory Winter Tire Discount

Here’s what you need to know about Ontario’s mandatory winter tire discount

Not all discounts are the same

Unfortunately, the actual discount is up to the insurance company and can range from 2% to 5%. Some insurers will offer the discount only at certain times throughout the year. Each company is different so be sure to ask your insurance broker if you qualify for the discount.

It’s important to note that while the discount is small, the installation of winter tires can keep you safer on the road and prevent you from getting into accidents with other vehicles or stationary objects. The more accidents on your record, the likelier you are to see a hike in premiums.

When buying these tires, Ontario is also reminding drivers to:

• Look for tires marked with a logo of a peaked mountain with a snowflake;
• Install the tires in sets of four;
• Do not mix tires with different tread patterns or sizes;
• Change tires that are worn close to the tread-wear indicators; and
• Check the tires’ air pressure at least once a month

Most companies require you to have the winter tires installed from November to April. Some companies may at any time require you to produce a bill of sale for the winter tires and/or the receipt of installation of the winter tires in order to validate the discount being applied.

Once the discount is applied, it will remain on the vehicle unless the vehicle is substituted. Any change of vehicle will require re-qualification.

Please contact our office today at 1-800-298-7343 to review your policy and see if there are any changes we can make to help lower your premium.