How to get cheaper car insurance in Canada

If you're a Canadian driver, you've probably noticed that your car insurance costs continue to increase year after year. Don't worry--you're not alone. Auto insurance premiums rose by an average of 4.1% in Ontario in 2025.

Provinces known for low premiums, like Quebec, experienced significant increases. According to Beneva, the average auto insurance cost rose by 12.6% between 2022 and 2023, reaching $897 annually.

Why? Due to rising repair costs, auto theft rates, inflation, and climate-related disasters, insurance companies across Canada have been forced to increase their car insurance rates to remain in business. In fact, insurance companies faced the most expensive year on record for insured losses, surpassing $8.5 billion in 2024, primarily due to wildfires, hailstorms, and floods. With all these factors in play, finding ways to lower your insurance premiums is more important now than ever.

Factors that affect auto insurance premiums in Canada

Auto insurance companies base car insurance costs on your risk profile. The more of a risk you are to insure, the higher your insurance in Canada will cost. Factors an insurance provider is looking at when you apply for coverage include the following:

Driving record

A driving record is a report card of your behaviour on the road. Motorists with driving histories that show numerous speeding tickets, DUIs, or at-fault accidents represent a higher risk to insurers.

On the other hand, maintaining a good driving record over the years can significantly reduce your car insurance rates as you get older. Many insurance companies offer safe driver discounts as a reward for keeping a spotless record.

Tip: Take a defensive driving course and drive responsibly to qualify for preferred insurance rates.

Age and driving experience

Statistically speaking, young drivers with little to no driving experience are more likely to be involved in a car accident than those who have more experience behind the wheel, which is why car insurance rates for under-25 drivers and new drivers tend to be substantially more expensive.

At the same time, those over 65 can also experience more expensive insurance rates. Ultimately, the best way to keep your insurance premiums as low as possible is to maintain a clean driving record, no matter what age you are.

Where you live

Living in urban areas like Toronto or Vancouver often means higher premiums. This is because densely populated cities generally have more traffic, leading to a higher chance of accidents.

Additionally, cities might have higher theft rates, vandalism, and uninsured drivers, all of which can bump up the cost. According to the Insurance Bureau of Canada, auto theft rates rose to $1.5 billion in 2023 alone. If moving to a new province in the future is a goal you have, remember that your car insurance coverage and how much you pay will be determined by your postal code.

Tip: Install anti-theft devices in your vehicle to receive a discount from your insurer.

Vehicle make and model

The make, model, and year of the vehicle play a crucial role in determining car insurance rates. A flashy sports car might be more fun to drive, but it’ll likely come with a heftier insurance tag. These vehicles are often driven at higher speeds and are more susceptible to theft, thus representing a higher risk.

In contrast, family-friendly vehicles like minivans or sedans generally attract safer drivers and are less expensive to repair, leading to lower car insurance premiums. Furthermore, vehicles equipped with advanced safety features and excellent crash-test ratings may qualify for discounts.

Tip: Drive a vehicle with good safety ratings and anti-theft systems to qualify for better insurance rates, and check out our guide to learn more about the cars with the lowest rates.

Insurance history

Lastly, your insurance provider will consider your insurance history. Specifically, they're looking for gaps in coverage, policy cancellations, and most importantly, the number of insurance claims you've filed. The more claims you've filed, the more you'll pay for insurance coverage compared to someone who has remained claims-free over the years.

Tip: Remain claims-free to qualify for discounts on coverage.

Usage

How often, how far, and where you drive can influence your rates. Daily commuters who cover long distances are more exposed to potential accidents than someone who only uses their car for weekend getaways. Some insurance companies offer reduced rates for low-mileage drivers.

Tip: Carpool with a friend or coworker, walk, or take advantage of public transportation alternatives when you can!

Auto insurance discounts you may be missing

What a lot of Canadians aren't aware of is that insurers provide discounts to customers that can help them save money on their insurance policies. Many insurers offer discounts to customers for:

Installing an anti-theft device to prevent theft

With auto theft rates on the rise in Canada, taking preventative measures to deter theft can help you avoid filing a claim and save on your car insurance. Install security features on your car, like a steering wheel lock, a dash camera, and an alarm system, to save up to 10% on your auto insurance.

Multi-car insurance discount

Does your household have multiple cars? Insuring multiple vehicles under the same auto insurance can help you save up to 20% on your coverage.

Installing winter tires to improve safety

Canadian winters are harsh. Snow and ice can make driving dangerous. By installing winter tires on your vehicle, you can not only enhance your safety behind the wheel but also save on your coverage with your insurance company.

Safe driver discount for maintaining a clean driving record

Maintaining a good driving record is one of the best ways to get cheap car insurance. Good drivers often pose little to no risk to insurance companies and help keep Canadian roads safe. To avoid accidents, follow the rules of the road, drive defensively, and consider taking a defensive driving course, especially if you're a new driver.

Bundling insurance policies with the same insurance company

Bundling your car insurance with other policies, such as home and business coverage with the same company, can help you save up to 15% on each policy.

Save money for being a loyal customer

Been with the same insurance provider for over 5 years? You may qualify for a savings. Many insurers offer discounts to those who have remained loyal customers over the years.

Low-mileage care insurance

If you drive fewer kilometres a year than the national average, you're less likely to be involved in an accident. Some insurance providers offer a discount to customers who can keep their annual kilometres under 10,000.

Tip: If you only drive on the weekends or take public transit often, ask about usage-based insurance discounts!

Good student discount

Young drivers with good grades may qualify for savings with their insurance provider of up to 15%. This can help you offset the high insurance rates typically experienced by those under the age of 25.

Telematics discount

Telematics programs track your driving habits, such as speeding, braking, and the time of day you drive, using a device in your car or a mobile app. Safe habits are rewarded with discounts on premiums.

How to shop for the cheapest auto insurance

If you live in a province with private insurers like Ontario or Alberta, shopping around for car insurance is one of the best ways to save. This is because private companies often offer different rates to customers, which can help you save hundreds of dollars at the end of the day. In provinces like British Columbia, on the other hand, shopping around and comparing quotes isn't possible as all coverage must be purchased from the same provincially-funded company. For cheap car insurance, here's what you need to do:

1. Assess your coverage needs

Before looking for cheap car insurance, assess your driving habits, budget, and needs. Ensure you understand what insurance policies are mandatory in your province, like liability car insurance, accident benefits coverage, and uninsured motorist insurance, and optional coverages like collision insurance or accident forgiveness.

2. Use online tools to compare quotes

Take advantage of BrokerLink's free online quote tool to compare rates from different providers from the comfort of your home within minutes.

3. Get at least 3 personalized car insurance quotes

Don't just get a car insurance quote from one provider. Shop around and compare rates from at least three companies to find cheap car insurance that doesn't sacrifice your level of protection.

4. Ask about discounts

Some discounts aren't automatically offered by insurance providers unless you ask. Don't hesitate to inquire about the different ways you can save--you may be missing out otherwise!

5. Speak with an insurance broker

If you prefer to shop around for car insurance with an insurance professional, working with a broker can benefit you significantly. Insurance brokers like BrokerLink work on your behalf, helping you compare quotes, unlock discounts, and answer any questions you may have. With access to numerous policies from top providers, you can customize your coverage to fit your needs and budget.

Myths about car insurance savings

Common myths about car insurance savings include:

"Red cars pay more"

This is false. Car insurance companies don't care about the colour of your vehicle. They're more concerned with the make, model, trim, safety ratings, repair costs, and other factors.

"Unemployment affects your insurance rates"

While insurance in Canada is calculated using various factors, your employment status does not affect your car insurance premium.

"My insurance rates automatically go down when I turn 25"

Car insurance may go down when you turn 25, provided that you maintain a good driving record, avoid violations on your licence, and don't file any insurance claims with your provider. Otherwise, you can expect to pay higher rates for your coverage until the demerit points are removed from your insurance record.

Expert tips to find cheap car insurance rates

Beyond the discounts we mentioned above, there are other ways you can get the cheapest auto insurance available:

Opt for a higher deductible

A deductible is the amount you’d pay out of pocket before your insurance kicks in. By agreeing to bear a larger portion of the risk with a higher deductible, you can often reduce your premium.

Pay your insurance premium upfront

Most insurance companies add a surcharge to customer accounts that pay their insurance in Canada every month. This surcharge can range between 3%-5% and is added to your account as it costs them money to process your payment. To avoid this surcharge, consider paying for your car insurance upfront.

Review your insurance policies often

As you gain experience and grow older, your driving habits and needs can change. Make it a habit to review and compare insurance quotes annually. Because Canada experienced an average increase of 16.4% in insurance rates in 2024 alone, reviewing your coverage often is key.

There may be new discounts available, you might find a different provider offering a more competitive rate, and you may decide that minimum coverage is more suitable for your needs, opting to drop optional coverages like collision coverage or comprehensive coverage from your plan entirely.

Contact BrokerLink for the best car insurance

With insurance premiums on the rise, getting cheap car insurance can seem unrealistic. By maintaining a good driving history, reviewing your coverage often, bundling policies, and working with an experienced insurance broker, like BrokerLink, you can get the best deal on your plan without sacrificing your coverage.

Whether you're looking for cheap classic car insurance, motorcycle insurance, or other policies, our team of brokers will work closely with you to learn your needs and budget before customizing a plan tailored to you.

Ready to get a lower insurance rate in Canada? Contact us over the phone or use our online quote tool to get a competitive insurance quote within minutes!

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FAQs for how to get cheap car insurance

How to get cheap car insurance in Ontario?

To get cheaper car insurance in Ontario: shop around for competitive quotes, bundle insurance policies, increase deductibles, complete a driver’s training course, maintain a spotless driving record, opt for vehicles with strong safety features, take advantage of discounts, multi-car, good student, and review your policy regularly to ensure optimal rates.

Where is the cheapest car insurance in Canada?

The cheapest car insurance in Canada often varies by province due to regulatory differences.

If you have any questions, contact one of our local branches.