Can you negotiate car insurance?

8 minute read Published on Aug 26, 2025 by BrokerLink Communications

Happy man communicating over mobile phone and working on laptop while being at office.

Many people want to save on car insurance in Canada, and so they wonder if the price of car insurance is up for negotiation. Below, we answer the question, “Can you negotiate car insurance?” and provide some expert-approved tips on ways that you can pay less for auto coverage.

Can I negotiate car insurance rates?

The short answer? No. You can negotiate car insurance premiums. Unlike when you buy a car or home, you are not allowed to negotiate your car insurance rates. If you try, you won't have any luck doing so.

Car insurance companies use complex and precise risk calculation formulas to assign car insurance premiums to customers that correlate with their risk level. Thus, the car insurance costs you receive will be tailored to you and are not up for negotiation.

Understanding how car insurance companies calculate rates

Car insurers use various factors to determine auto insurance costs, including:

  • Where you live
  • Age
  • Gender
  • Vehicle type
  • How you use your vehicle
  • Driving record
  • Driving experience
  • Past claims
  • Prior insurance coverage
  • Number of kilometres you drive
  • Type of coverage on your policy
  • Your deductible(s)
  • Your policy limits
  • Credit score

We should note that car insurance companies may take into account even more factors than this, and each insurance company may weigh each factor differently, which is why you might pay different car insurance rates for the same coverage from different insurance providers.

If you want to know how much car insurance costs, all you have to do is request a free quote from BrokerLink. All quotes are complimentary, reliable, and accurate.

Tips for lowering car insurance costs in Canada

If you want to save money and lower your car insurance premium in Ontario, there are several steps you can take:

1. Compare quotes from more than one insurance company

First, take the time to compare quotes from more than one car insurance company. Again, since each insurance company uses its own risk calculation algorithm, you might be surprised to discover that you receive varying auto insurance quotes from different insurance companies.

Therefore, you should always do your due diligence and reach out to multiple insurance companies before making a decision. You can do this by working with an insurer directly or partnering with a broker to discuss your coverage options.

2. Increase your policy deductibles

Premiums are impacted by deductibles, so choose your policy wisely. In other words, don’t simply choose the lowest deductible right off the bat. Instead, consider choosing a higher deductible, which can lower your premium.

Although you will have to pay more money in the event of an insurance claim, you won’t have as much money leaving your pocket upfront. Plus, if you drive safely and avoid any incidents, you may never have to file a car insurance claim. In this scenario, choosing a high policy deductible could save you a lot of money down the road.

3. Consider low-mileage insurance

If you are an occasional driver, then you might want to ask a broker about low-mileage insurance. This type of insurance is designed for those who spend a below-average amount of time on the road.

Generally speaking, low mileage insurance plans cost far less than regular plans since you spend less time on the road and are thus less at risk of getting into a collision.

4. Review your policy before renewing

Auto insurance plans must have various types of coverage, limits, and deductibles. However, as the policyholder, you can choose what many of these coverages, limits, and deductibles are. If you wish to modify any aspects of your policy, doing so when it is up for renewal is the most convenient option. So once a year, when your car insurance plan renews, take the time to assess your coverage carefully.

Consider whether the same insurance products from the previous year still work for you or if you can afford to make some changes. Certain changes - namely, raising deductibles, lowering limits, and removing coverage - can result in a drop in your insurance premium. To learn more about how to modify your policy so that you can save money on car insurance, contact BrokerLink.

5. Pay for your car insurance policy annually

Paying for your car insurance policy annually is another way that you might be able to save money on insurance. The reason for this is that some insurance companies charge extra to customers who opt for monthly payments. The extra charge is usually in the form of transaction or administrative fees. Therefore, paying for your policy once upfront could help you save money and lower your car insurance rates for the year.

6. Become a better, safer driver

Our second-to-last tip for saving money on car insurance is to drive more safely and responsibly. Why? This increases your odds of maintaining a clean driving record, and your driving record significantly impacts how much you pay for car insurance.

The cleaner your record, the cheaper your auto insurance rates will be. On the other hand, if you engage in reckless or distracted driving, you are far more likely to get a ticket or be involved in a collision, both of which can increase your rates.

Choose a safe and reliable car

If you are in the market for a new car, consider one of the cars with the lowest insurance rates. Although the car you drive alone will not determine your premium, it does come into play. Insurance providers like to see when a customer drives a safe, reliable, and economical car.

Vehicles with high safety ratings are less likely to get into accidents, and if they are involved in accidents, they are less likely to suffer severe damage and bodily injuries that require medical expenses. Opt for a car with safety features like anti-lock brakes, dash cameras, and more to lower your car insurance.

Meanwhile, cheaper cars are more affordable to insure since the replacement and repair costs will be less. Alternatively, if you choose a high-end luxury SUV or a fancy sports car, you will likely pay more for auto coverage.

Save money by qualifying for a car insurance discount

Another way that you can pay less for car insurance is by qualifying for a discount. There are all kinds of auto insurance discounts out there, from winter tire discounts to driver’s education discounts:

Driver’s education discount

A driver’s education discount is the first type of discount that might apply to your situation. You should let your insurance company know if you recently completed a driving skills course, whether it was a defensive driving class or an introductory course.

They might be willing to offer you a discount on your car insurance rate due to the valuable skills and knowledge you just acquired. Driver’s education discounts are most often applied to young or new drivers, and they can make a big difference, considering how high premiums are for new drivers in Canada.

Winter tire discount

A winter tire discount is a second type of discount that you might be interested in. As the name suggests, you can qualify for this discount in certain provinces simply by installing snow tires on your car. Just make sure that all four snow tires are the same model and that you have them installed on your car by the date set by your insurer.

Insurance bundling discount

Insurance bundling is another option if you want to save money on car insurance via a discount. Insurance bundles do not apply to every type of insurance product, but they usually apply to car insurance, home insurance, and recreational vehicle insurance, among others.

If you also need another type of coverage, buy them both from the same provider, and they might be willing to bundle them together for you. Insurance bundles or packages are almost always cheaper than buying two or more separate policies.

Multi-car insurance discount

Qualifying for the multi-car insurance discount is relatively straightforward if you have more than one vehicle you need insured. All you have to do is buy multiple car insurance policies from the same company simultaneously for multiple vehicles. So, if you have two or more cars in your household, ask an insurance company if they will bundle your policies together, and you could save.

Hybrid and electric vehicle discount

Did you know that driving a hybrid or electric vehicle could result in a car insurance discount? It’s true! Insurance companies across Canada now offer discounts to motorists who drive eco-friendly cars as a way of motivating people to reduce their emissions and go green.

Loyalty discount

Have you been with the same insurer for numerous years, and have more than one insurance policy with them? If so, you may qualify for a loyalty discount! Many insurers offer these types of discounts to customers as a way of saying thank you for your continued business throughout the years!

Who has the best car insurance rates?

When it comes to car insurance prices, there really isn't one company that provides the best insurance coverage or auto insurance rates. It ultimately comes down to what you're looking for as a customer, your risk profile, potential discounts, and your budget.

While you can't negotiate car insurance rates by comparing price policies from several insurers, you'll be able to find the cheapest car insurance rates available without having to sacrifice your coverage amounts.

Can I expect lower premiums each year?

Whether or not you qualify for lower premiums each time you renew your car insurance rates will depend on your personal circumstances and your driving history. For example, if you took a defensive driving course and remained accident-free throughout the year, it's possible that your car insurance company may lower your costs slightly.

It's important to remember that there are other external factors at play when it comes to costs. For example, inflation rates, local regulation changes, and the cost of repairs all play a role in what you'll pay. So, as long as you maintain a clean record, remain accident-free, and compare quotes from other insurers before renewing, you should be able to maintain a relatively similar rate as the year before.

Get in touch with BrokerLink today

If you are concerned that you are paying too much for car insurance in Toronto, have questions about car insurance costs in Alberta, or simply wish that you were paying less for it, reach out to BrokerLink today. Although auto insurance premiums are not negotiable, there are still ways that you can lower your car insurance prices.

A BrokerLink insurance advisor can provide all kinds of tips and advice on ways that you can save money on auto coverage. We can also ask about the different auto insurance discounts out there, if any apply to you.

Plus, through our meticulous research, we will make sure that you always get the most competitive rate for your policy. No matter what type of auto insurance you’re looking for, we’ll help you find it, and that includes:

Contact BrokerLink to request a free car insurance quote. This is the best way to begin your car insurance journey, and all BrokerLink quotes are entirely complimentary!

Get an auto insurance quote [phone]