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8 minute read Published on Jan 19, 2026 by BrokerLink Communications
Car insurance premiums in Canada continue to rise, with rates climbing as much as 12.9% year-over-year in Alberta and 11.6% in Ontario as of 2024. Whether you're a new driver, a seasoned commuter, or someone who only drives occasionally, finding ways to reduce your car insurance costs makes sense, especially if you want to keep more money in your pocket.
At BrokerLink, we believe that all Canadians should have access to affordable insurance coverage, which is why our insurance experts have put together a foolproof list of how to save on car insurance you can take advantage of right away. Beyond that, we've answered some of your most frequently asked questions and some lesser-known ways to save on auto insurance. Stick around for more information.
Keep more money in your pocket without sacrificing your coverage with these tips to save on car insurance in Canada:
If you're insuring more than one type of asset, such as your home, cottage, RV, business, or boat, bundling these coverages with your car insurance policy can lead to some serious insurance savings. Most insurance companies offer discounts of up to 15% or more when you insure two or more policies with them. For example, if your home insurance premium is $1,200 a year and your car insurance premium is $1,800 a year, bundling them together could save you more than $270 annually. Beyond this, having all of your coverage with the same company can make managing your policies and payments a lot easier.
Usage-based insurance (UBI) programs use telematics devices to monitor your driving habits, including how you accelerate, brake, the time of day you drive, and whether you're on your phone at the same time. If you're a safe driver, you’ll earn discounts as you drive.
For example, with Intact Insurance's myDrive program in Ontario, not only will you get an automatic 10% discount when you sign up for the program, but you'll also receive an additional 15% discount when you renew. However, if you exhibit bad driving behaviours, you can be penalized by your provider, which will raise your premiums.
Many Canadians may qualify for discounts with their employer, professional associations, unions, and alumni networks. BrokerLink can help you access these discounts when you're shopping around for coverage.
Your deductible is the amount of money you are responsible for paying if you have to make an insurance claim. A higher deductible is a great way to save money on car insurance. For example, increasing your deductible from $500 to $1,000 could lead to hundreds of dollars in savings.
However, by opting for a higher deductible, you take the risk that you have to pay more out of pocket if you make an insurance claim. Only opt for this if you are a safe driver who rarely files any claims with your insurance provider.
This one is obvious. The safer a driver you are, the lower your car insurance rates will be. Tickets, at-fault accidents, and numerous claims on your insurance history will deem you a high-risk customer with most insurance companies.
Remember, even a minor speeding ticket can remain on your driving record for three years, so driving carefully and following the rules of the road will pay off long-term. Additionally, if you remain ticket and accident-free for years on end, you can qualify for a safe driver discount, which can help you save on car insurance by up to 15%.
Driving school is for everyone, and taking a defensive driving course makes a difference, whether you just got your driver's licence or have had it for several years. Driver training can lead to insurance discounts of 10% to 20% with most insurance companies. So, whether you're a young driver or not, if you want to save money, consider this an easy strategy that will pay off.
Auto theft in Ontario hit $1.5 billion in payouts in 2023, adding $130 to all insurance premiums in the province. To prevent theft and reduce your insurance costs, consider equipping your car with anti-theft devices.
There are many types of anti-theft devices, including car alarms, GPS tracking systems, steering wheel locks, and immobilizers. Just make sure they're approved with your insurance company to ensure you qualify for savings.
Although winter tires are not mandatory for most provinces and territories, you can save money on your car insurance rates by equipping your vehicle with this safety feature, as it will reduce your chances of being in an accident during the wintertime. Most auto insurance companies offer a 10% discount for this feature.
Looking for additional ways to save on car insurance? We've got you covered:
A multi-vehicle discount, or multi-car discount, is offered by the majority of insurance companies. It's a cost-saving benefit for policyholders who own more than one vehicle.
Essentially, the discount is an incentive for households with more than one vehicle to be insured by the same company. It allows families and individuals to save money in the long run with up to 20% in possible discounts.
If you drive an older vehicle with a low resale value under $5,000, you may want to consider dropping your comprehensive and collision coverage. These add-on auto insurance policies cost more than basic liability coverage and only come in handy if your vehicle has expensive replacement or repair costs.
Are you a remote worker, retired, or someone who drives infrequently just because? A low-mileage discount is available for policyholders who drive their vehicles fewer miles annually than the average driver.
You may also want to consider opting for pay-per-mile insurance. How this works is insurers charge a base rate per month, and a fee per kilometre. For example, if your base rate is $30 a month and you drive 400 kilometres at $0.06 per kilometre travelled, your total cost per month would be $54.
Staying with the same insurance company for numerous years pays off. Most insurance companies offer a loyalty discount and other perks to long-term customers as a way of saying thanks for your business.
You shouldn't settle for the quote you get from the first insurance company you speak with. Shopping around is the way to go, and this is where BrokerLink shines.
We're your local insurance brokerage with over three decades of experience. Our insurance brokers can help you find the coverage that suits your budget and needs. We take the time to understand your needs, driving habits and budget. From there, we find an insurance company in our massive network to match you with.
Student discounts on car insurance are available for student drivers who choose certain insurance companies. These discounts make car insurance more affordable for students who face higher premiums due to their lack of driving experience and age.
The "good student" discount is one of the most common types of auto insurance discounts. It allows students who maintain a certain grade point average (GPA) to be rewarded for good academic performance. This is because these are viewed as more responsible and less likely to engage in risky driving behaviours.
Senior discounts are a way for older drivers with a good driving record, free of infractions, to save money on insurance. This usually applies to those aged 50 and above.
For example, several insurance companies offer mature driver discounts to policyholders who complete an approved defensive driving course or safe driving program to refresh their skills and stay up-to-date on the latest traffic laws.
Yes, it does! In many provinces like Ontario, if you instal winter tires on your vehicle during November and April, you could save up to 10% on your premiums. All you need to do is notify your auto insurance company of the upgrade and potentially provide proof of the tires before the discount is applied to your premiums.
Usage-based insurance (UBI) is a modern approach to car insurance that rewards safe driving behaviour. This involves installing a device in your vehicle or using a mobile app to track your driving habits. This takes factors such as speed, braking patterns and the time of day you drive into account. If you're a responsible driver, UBI can save you money on your car insurance. Essentially, you only pay for the miles you drive and your driving behaviour.
Group benefits aren't automatic for everyone, but many Canadians may qualify without even realizing it. For example, if you're a member of a union or professional association, they may offer up to 15% off your premiums and are available through BrokerLink in multiple provinces.
Generally speaking, yes. A higher deductible does mean lower premiums. However, the savings you're entitled to will depend on your insurance provider and your overall driving profile and risk level.
We recommend shopping around for car insurance at least once a year, especially if you are up for a renewal soon. Rates can change due to claims trends, changes in your driving record, and shifts in the economy all the time. Even if you’re happy with your current insurer, you may find better coverage or rates elsewhere simply by shopping around and comparing quotes.
Yes, while you can cancel your insurance mid-policy to find cheaper insurance costs elsewhere, you should know that your provider may charge you a cancellation penalty. So, before cancelling, speak with a broker and review your policy documents to see whether the benefits of switching outweigh the potential penalties.
While insurance companies use numerous factors to determine your insurance premiums, only some Canadian provinces, like Nova Scotia, use your credit score when calculating your annual premiums. Insurers may use your credit score to assess your financial stability and likelihood of filing a claim.
In order to potentially lower your premiums, you should maintain a credit score by paying bills on time, reducing outstanding debts, and managing your finances responsibly.
Still unsure what discount and other saving strategies apply to you? A licensed BrokerLink advisor can help you unlock all the savings you're eligible for with ease. We work with multiple insurers across Canada, so we can compare rates and coverage details on your behalf, and find the best fit for your driving habits and budget.
For personalized insurance recommendations and to optimize savings, contact BrokerLink directly over the phone or by email to speak with someone today!
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