Tips for getting a lower insurance rate in Canada

What would you do if you could save up to hundreds of dollars on your annual auto insurance simply by making a few strategic changes? Many Canadians pay more than they need to when it comes to car insurance. But it’s not because they’re poor drivers, but rather because they don’t understand what factors influence their insurance premiums. In Ontario, the average insurance premium as of June 2025 is $2,120. But with some small adjustments, you can keep more money in your pocket, without compromising on your coverage.

Tip 1: Choose Your Car Wisely

If you’re in the market for a new vehicle, before you fall in love with the model you’re looking at, check how much it is to insure it. Your vehicle make, model, year, safety rating, repair cost, and theft risk all play a major role in determining your insurance rates. The Insurance Bureau of Canada’s How Cars Measure Up report is a great resource you can look at to see what vehicles have high repair costs, higher theft rates, and poor collision performance.

This type of information matters even more as Statistics Canada indicates that average new vehicle prices across the country have reached a record high of $65,219, which directly affects auto insurance premiums due to higher repair and replacement costs. Before buying:

• Use your insurance company’s online quote tool to compare vehicles with ease.

• Ask for insurance quotes online for at least two or three models you’re considering.

With a couple of minutes of research, you could save yourself hundreds of dollars a year.

Tip 2: Shop around and compare multiple quotes

On average, premiums rose 9.6% year-over-year in some provinces in 2024 due to inflation. However, no two insurance companies price risk levels the same. That means the price you’re quoted at one insurance company may differ from another. That’s why obtaining three or more quotes is one of the easiest ways to keep more money in your bank account and help you stay ahead of price jumps. When comparing quotes, consider the following:

• Deductibles

• Coverage limits

• Possible discounts

• Additional coverage options like comprehensive coverage, collision coverage, and more.

An insurance broker from BrokerLink can help you compare coverages, so you get a better idea about what each insurance policy offers and how it will affect your ability to save money.

Tip 3: Adjust coverage and deductible amounts

The type of insurance policies you choose will directly impact your car insurance premiums. Liability is a type of mandatory coverage in all provinces, while collision coverage and comprehensive coverage are optional, but still highly valuable, as it covers damages from accidents, theft, vandalism, fire, and severe weather conditions.

So, how do you choose? If your vehicle is older and has depreciated significantly, you may want to consider whether comprehensive and collision insurance policies are worth the investment. Another effective strategy you can consider is opting for a higher deductible amount. Having a more expensive deductible can lower your premium, but it does mean you’ll need to pay more out of pocket to your insurer should you need to file a claim in the future. So, choose a deductible that fits our budget.

Tip 4: Bundle auto insurance and home insurance & insure more than one vehicle

Bundling your home insurance, car insurance, and other insurance policies with the same insurance company is a low-effort way to save money on your auto insurance. Doing so can qualify you for a multi-policy discount of 15% on your premiums. At the same time, if you live with a family with numerous cars, insuring multiple vehicles under a single policy can make you eligible for a multi-vehicle discount, which will save each driver a certain percentage on their premiums.

Tip 5: Car insurance payment & loyalty strategies

How you pay your car insurance premiums also influences the amount of money you save. Many insurance companies offer discounts when you pay for your auto insurance annually rather than monthly, as it helps them reduce their administrative costs.

While this could save you between 3 and 5% in surcharges, over time, this can add up. And with Canadians paying on average between $100 and $200 a month for their premiums, paying upfront is sometimes the best option.You can also unlock further savings by making on-time payments. By setting up automatic withdrawals from your account, you’ll maintain a good standing with your insurance provider, for which you may be eligible for a loyalty discount over time.

Tip 6: Usage-based insurance (UBI) and anti-theft systems/low-risk habits

Usage-based insurance (UBI) programs reward safe driving habits by monitoring your driving behaviour through an app or plug-in device in your vehicle. Factors like braking, acceleration, time of day, and mileage all help determine whether you qualify for discounts. For low-mileage, occasional drivers who often use public transit, this can result in significant savings. Another concern Canadian drivers face is auto theft rates. In 2023 alone, auto theft claims across Canada reached $1.5 billion in payouts. To prevent your risk of theft and lower your risk profile:

• Install insurer-approved anti-theft devices.

• Park in a secure garage or well-lit area.

• Avoid leaving your car keys by your front door or windows.

Tip 7: Maintain a clean driving record & use defensive driving courses

Your driving record is one of the strongest predictors of your premium. Those with a good driving record with little to no insurance claims, accidents, or traffic violations can experience substantial discounts over time. Young drivers and those without a good driving history, on the other hand, can anticipate paying higher premiums, which is why it’s important to drive safely at all times. An opportunity to save money on your rates is to take a defensive driving course. Completing a course can earn you a discount on your rates and improve your confidence behind the wheel.

Tip 8: Ask about discounts

Talk to your insurance representative about whether there are other discounts available that you may be eligible for. Many insurance companies offer discounts for remaining claim-free, installing winter tires, and being a member of a professional association, all of which can help you save.

Saving money on car insurance isn’t about cutting back on your coverage; it’s about understanding the risks you face as a driver and making smart, strategic choices to get the most cost-effective premiums. Speak with a BrokerLink broker to review your policies, uncover new discounts, and maximize your savings today.

Contact BrokerLink today

As we come to the end of the ins and outs of car insurance in Canada, it’s clear that a little know-how goes a long way. Embracing practical steps like fitting winter tires, considering usage-based insurance, and maintaining a clean driving record can really make a difference in your premiums. It’s about paying attention to the details, like where you park your car and understanding your unique insurance needs. Collaborating with an insurance broker might also illuminate paths to savings you hadn’t considered. Remember, the trick is to stay informed and review your policy regularly.

By applying these straightforward strategies, you’re not just safeguarding your vehicle but also steering towards cheap car insurance in Canada. Safe driving and thoughtful saving can be your roadmap to smart and cost-effective insurance coverage.

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FAQs for getting lower car insurance rates

Does adding a second driver affect my insurance premium?

Yes, adding another driver to your policy can definitely change your premium, but how much really depends on who that second driver is. If they have a solid driving record, are a bit more experienced, and generally don’t raise any red flags for the insurer, you might not see much difference in your rates. However, your premiums could increase if you’re a high-risk driver like a teenager or someone with a history of accidents.

Do safety features on my car lower my rates?

Yes, having safety features in your car can actually save you on insurance. Insurers often provide discounts for vehicles equipped with advanced safety features such as anti-lock brakes, airbags, electronic stability control, and advanced driver-assistance systems. These features reduce the risk of accidents and injuries, which can lead to lower premiums.

How can I lower my high-risk insurance premiums?

Improve your driving record by avoiding accidents and traffic violations to lower high-risk premiums. Consider enrolling in a defensive driving course, sometimes leading to discounts. Also, opt for a higher deductible and drive a less expensive car to insure. Regularly review your policy to ensure it matches your current needs, and shop around for better rates as your risk profile improves.

How can I lower my auto insurance in Canada?

Lowering your vehicle’s insurance in Canada can be achieved by shopping around for competitive rates, bundling different insurance policies, and maintaining a clean driving record. Use winter tires for seasonal discounts, opt for a higher deductible, and consider usage-based insurance programs. Also, take advantage of any discounts for safety features in your vehicle and reduce your coverage on older cars.

How do I get more insurance discounts?

To get more insurance discounts, first, inquire with your current provider about any available discounts that you might not be utilizing. Consider bundling multiple policies like home and auto with the same insurer, maintaining a clean driving record, and installing safety and anti-theft devices in your car. Enrol in defensive driving courses if available, and explore usage-based insurance options. Additionally, look into specific discounts that may apply to you, such as those for low-mileage drivers, seniors, or members of certain organizations.

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