When does car insurance go down?
7 minute read Published on Jun 3, 2026 by BrokerLink Communications
It’s safe to say that all drivers in Canada have wondered when their car insurance premiums will go down. With auto insurance premiums influenced by age, driving experience, driving record, vehicle type, location, it’s really not a one-size-fits-all answer. In Canada, car insurance rates do tend to go down after the age of 25, assuming that the motorist has a clean driving record, but it’s not always guaranteed. By understanding what factors affect rates, you can plan your coverage accordingly and save money moving forward.
Why age group affect car insurance costs
Age group is one of the most important factors insurers use to determine rates. Insurance companies view age as a proxy for risk — younger drivers are statistically more likely to get into accidents, while older, experienced drivers are seen as safer. Here is a breakdown of age groups and approximate auto insurance rates across Canada:
Teen drivers (16-19)
According to Mothers Against Drunk Driving (MADD), teens and young adults have the greatest percentage of traffic fatality and injury per capita of any age group, as well as the highest death rate per kilometre travelled amongst motorists under 75. Drivers in this under-25 age group pay the higher premiums due to their limited experience behind the wheel, car accident rates, and likelihood of engaging in risky behaviour. However, even if a driver waits to get their driver’s license at the age of 25, the lack of experience can keep their insurance rates high initially.
Young adults (20-24)
Young adults are still considered higher risk compared to those over the age of 25. For example, CTV News states that an average 20-year-old in Ontario could have to pay up to $13,000 in insurance premiums annually. However, younger drivers will start to see their auto insurance premiums decrease as they gain more experience behind the wheel and maintain a clean driving record.
Adults (25-60)
This age group is typically the sweet spot for car insurance costs in Canada. For example, a 30-year-old Ontario driver with a clean driving record may pay on average $2,000 annually. Rates are often the lowest in adulthood because insurance companies consider these drivers experienced and less likely to file claims.
Seniors (65+)
Senior and elderly drivers often pay less for car insurance than young drivers but more than adult drivers. This is largely due to slower reaction times or other age-related factors. Many insurance providers, however, do offer senior discounts on car insurance premiums, making it more affordable for retirees.
Other factors influencing car insurance premiums
A few other factors that an insurance company will consider when calculating your car insurance premium at any age are as follows:
Driving record and driving history
Your traffic violations and at-fault accidents can significantly impact your car insurance rates. For example, Insurance Business Magazine reports the following premium increases based on driving convictions:
-
Minor conviction, like failing to signal your intent: Approximately 10% increase in your auto insurance rates.
-
Major conviction, such as driving more than 50 km over the speed limit: Approximately 25% increase in car insurance rates.
-
Serious convictions like DUIs: About a 100% increase in insurance costs.
Note that traffic convictions and at-fault car accidents can affect your premiums for up to 5 years or more. Insurance companies often reward safe driving behaviour with substantial discounts as they pose less of a risk to others.
Location
Your postal code also matters. For example, those living in urban areas with high traffic congestion, auto theft rates, and elevated claims payouts can anticipate higher premiums than those living in more rural areas with lower traffic congestion and crime/claim rates.
Vehicle make and model
Your vehicle make and model can also impact premiums. Those driving luxury, sport, or high-theft-risk vehicles cost more to insure. Statistics Canada reports that the price index for passenger car parts, maintenance, and repairs increased by 22.3% in December 2024 compared to December 2019, which has a substantial effect on your auto insurance premiums.
Driving habits and annual mileage
The more time you spend behind the wheel and the farther you travel, the more likely you are to be involved in a car accident. Insurance companies often reward low-mileage drivers with lower premiums, especially when customers sign up for usage-based and telematics programs.
Credit score
In provinces like Alberta and New Brunswick, insurance providers are able to use your credit score to determine your car insurance rates. This means that the higher your credit score, the lower your rates will be and vice versa. In other provinces, like Ontario and British Columbia, insurance companies are not allowed to use your credit score when calculating insurance premiums.
Coverage levels and deductible amount
The more coverage you choose and the higher your coverage levels, the higher your car insurance rates will be. However, the trade-off to this is that you’ll receive greater financial protection than someone who purchases basic coverage. Similarly, the higher your deductible amount, the lower your car insurance rates will be, as you’re agreeing to take on more of a financial risk should you need to file a claim in the future.
Gender
Generally speaking, gender also plays a role in your rates. Historical data show that males are more likely to be involved in a collision due to risky behaviour. According to Statistics Canada, in 2018, 1,313 men and 538 women died as a result of transportation-related accidents. Additionally, younger drivers, specifically males, are approximately twice as likely as their female counterparts to drive after consuming alcohol or smoking cannabis, according to the Canadian Centre on Substance Use and Addiction.
When do car insurance rates go down?
So, when can you anticipate your auto insurance rates to go down? Unfortunately, car insurance drops are guaranteed when you hit certain milestones. But, there are a few times you’re likely to see your cost of car insurance become more affordable:
1. After gaining more experience (usually around 3 to 6 years)
Once you’ve built a longer driving history without any serious traffic violations, speeding tickets, or at-fault accidents, insurance companies will begin to lower your rates. Many drivers see their first noticeable drop after the first three years, with even cheaper rates around the five to six-year mark.
2. As driver’s age increases
Generally speaking, car insurance rates go down once a driver turns 25, especially if they have a clean driving record. Remember, this isn’t guaranteed. But statistically, drivers in their mid-20s and older will typically pay less for their car insurance policies compared to when they were younger.
3. When at-fault car accidents and tickets come off your driving record
Most insurance companies review your driving history over the past 3 to 6 years. When older infractions happen further in the past, your car insurance goes down the next time you’re up for a renewal.
4. When you change vehicles or coverage options
Switching to an older vehicle with lower repair costs or a lower theft risk can reduce your cost of car insurance. Opting for a higher deductible or adjusting optional coverage on your plan can also help you lower your rates.
5. After completing a recognized driver training program
For new drivers, taking an approved driver training program can qualify you for discounts on your auto insurance policy, which can help you offset your higher premiums.
7 ways to lower your auto insurance premiums
To lower the rate of your insurance policies, there are a couple of things you can do:
Get older and gain experience
While this isn’t a guarantee, as age is only one factor influencing rates, getting older may be a reason that your rates go down. As explained above, there is a correlation between your age and how much you pay for auto insurance in Canada.
Gaining experience and confidence behind the wheel, along with taking a driver’s safety course and remaining violation-free, is the best way to keep your insurance costs as low as possible, no matter how old you are.
Shop around and compare quotes
Not all insurance providers offer the same rates. By comparing quotes, you can save hundreds of dollars a year on your coverage without cutting back on your protection level. Working with a broker like BrokerLink gives you the ability to compare car insurance quotes with ease, unlock discounts, and customize a plan that fits your needs.
Raise your deductible
Increasing your deductible from $500 to $1,000 can help you reduce your premium. Just remember that you will be responsible for paying more out of pocket in the event you file a claim under your car insurance policy in the future.
Install anti-theft devices
Installing an anti-theft device on your car may qualify you for a car insurance discount. Some insurers require drivers to purchase specific models of anti-theft devices or ones with certain capabilities. However, by installing anti-theft prevention devices in your vehicle, you can deter thieves from stealing your vehicle and save you 5% on your premiums.
Bundle your home and car insurance policies
Bundling your home and car insurance policies, along with other plans you may have with the same insurance provider, can save you up to 15% on your rates.
Take a defensive driving course
Taking advantage of a defensive driving course to improve your driving habits and maintain a good driving record as a young driver. Savings can range from 5 to 15%, depending on the insurance company.
Remain claim-free
The more claims you have on your insurance history, the greater risk you’ll be to your insurance provider. A single claim on your insurance can increase your rates anywhere from 5% to 50%, depending on your previous history, especially if you’re deemed at-fault.
Provincial differences in car insurance rates
Because insurance is regulated on a provincial level, the insurance marketplace can vary between them. Here’s a provincial breakdown of costs below:
Province |
Annual average premium |
|---|---|
Ontario |
Approximately $2,120 as of June 2025, according to [FSRA]( |
Alberta |
Approximately $1,703 according to the AIRB mid-year 2025 report. |
Quebec |
Approximately $1,108 according to Groupe des Assureurs Automobiles (GAA) |
Atlantic Provinces |
Approximately $1,200 according to Auto Lending Canada. |
Will car insurance premiums go down after paying my car off?
Generally speaking, you can get a lower insurance premium when you pay your car off, given that you’ll likely have more coverage as a condition of your lease or car loan, like comprehensive coverage and collision. But still depends on your driving history, record, and other factors.
Cars with the lowest insurance costs
Cars with the lowest annual insurance rates in Canada as of 2025 include:
Mitsubishi Mirage (sedan): $1,534.
Toyota Corolla (sedan): $1,624–$2,399.
Honda Civic (sedan): $1,645–$2,288.
Subaru Impreza (sedan/wagon): $2,120.
Ford Escape (SUV): $1,853.
Hyundai Kona (SUV): $2,543.
Mazda CX‑5 (SUV): $1,877–$2,698.
Toyota RAV4 (SUV): $2,372.
Chevrolet Silverado 1500 (Truck): $2,331.
Ford Maverick (Truck): $2,118.
Contact BrokerLink today
Looking to save on car insurance? BrokerLink can help you tailor a plan that fits your needs, budget, and lifestyle without compromising your coverage. Get a free insurance quote with a BrokerLink broker today.