How to get cheaper car insurance

13 minute read Published on Dec 16, 2023 by BrokerLink Communications

High angle view of a road through an autumn forest

For many of us, car insurance is a necessary yet hefty expense. As we scan through policy details and premium costs, we can’t help but wonder: Is there a way to make this more affordable? The good news is, the answer can be yes. Whether you’re a new driver facing high initial rates or someone simply looking to reduce ongoing costs, this blog will guide you through strategies to secure cheaper car insurance. Say goodbye to breaking the bank and hello to savings as we steer you down the path to more affordable coverage.

12 ways to get the cheapest car insurance rates possible

Finding affordable car insurance doesn’t have to be a daunting task. By employing certain strategies, such as insurance shopping, bundling policies, increasing deductibles, choosing the right vehicle, and only paying for the coverage you need, you can potentially slash your premiums without compromising coverage. Let’s dive into each of these money-saving tactics in more detail:

Shop around for better car insurance rates

Not all insurance companies are created equal. Rates can vary significantly between providers based on their risk assessment algorithms, overheads, and other internal factors. Devote some time to obtain and compare quotes from multiple insurers. And remember, when you’re comparing, ensure that the coverage, deductibles, and policy terms are consistent to get a true picture of which deal is best.

Bundle your insurance policies together

Think of this as a bulk purchase discount. Insurers are often keen to manage more of your insurance needs and may offer incentives like bundling discounts to entice you. Bundling home and auto insurance can lead to considerable savings. Furthermore, if you own multiple vehicles, you may be able to bundle them together to receive a multi-vehicle discount.

Consider 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.

However, it’s crucial to ensure you have the means to cover this amount should the need arise.

Keep a good driving record

Insurers love responsible drivers. A stellar driving record speaks volumes about your responsibility on the road. Insurers often reward such reliability with discounted rates, recognizing the reduced risk associated with insuring you.

Choose the right vehicle to keep your car insurance costs down

Insuring a luxury sports car will almost certainly cost more than insuring a standard sedan. Factors like the cost of parts, safety features, and theft rates play a part in determining auto insurance costs. Researching potential insurance costs before purchasing a vehicle can lead to long-term savings.

Install anti-theft devices

Enhanced security measures mean your car is less likely to be stolen, reducing risk for your car insurance company. Whether it’s a sophisticated tracking system or a simple steering wheel lock, security measures can lead to premium reductions.

Swap your all seasons for winter tires in cold weather

Throughout Canada, having winter tires can often qualify you for an insurance discount, as they reduce the risk of accidents in icy conditions. Especially relevant in snowy regions, winter tires provide better traction and can significantly reduce the likelihood of winter accidents. As such, most car insurance companies often recognize and reward this proactive safety measure.

Consider usage-based or pay-per-mile insurance

Technology now allows insurers to tailor policies based on actual driving patterns. If you rarely drive or cover fewer miles, these personalized policies can be a benefit for your wallet.

Ask about ways to get discounts on car insurance

Beyond the standard no-claim bonus, insurers offer a plethora of discounts—be it for safe driving records, occasional drivers, good students, electric or hybrid vehicles, winter tires, military personnel, or even certain professions or alumni groups. It never hurts to ask and ensure you’re leveraging every possible savings avenue.

Pay your premiums annually, not monthly

Some companies charge a bit extra for monthly payments due to administrative costs. An annual payment can sometimes reduce the overall amount. Also, make sure you make your payments on time, every time.

Consistency in payment can maintain or even improve your insurance score, leading to potential discounts in the future.

Only pay for the coverage you actually need

Based on your vehicle’s age, location, and driving behaviours, a comprehensive policy might not be necessary. It’s essential to evaluate your policy annually and reconsider your insurance requirements. For instance, as your car ages, maintaining collision or comprehensive coverage might not be cost-effective. If your car is involved in a collision, the coverage payout could be lower than what you’ve paid in premiums.

Work with an insurance broker

Insurance brokers act as intermediaries between you and potential insurance providers. They have a vast knowledge of the insurance market and can help navigate the myriad of choices available.

Brokers can understand your unique needs, recommend suitable policies, and often have access to special deals or discounts not openly advertised.

Furthermore, they can save you time and effort as they do the legwork of comparing multiple quotes on your behalf. In the event of a claim or renewing your car insurance, having a broker can also be beneficial as they can provide advice and act as your advocate, ensuring either process goes smoothly and helping you avoid making any common car insurance mistakes.

By following these strategies, drivers can take proactive steps to ensure they receive the best possible rates while maintaining the coverage they need.

Common types of auto insurance coverage

Understanding the various types of auto insurance coverage available is essential for every driver. It not only helps in selecting the right protection for your vehicle but also ensures that you’re legally compliant and financially shielded against potential risks. Some types of auto insurance are mandatory, such as third-party liability insurance and accident benefits coverage, while others are optional add-ons to enhance your overall coverage, like comprehensive and collision. Let’s delve deeper into each of these common coverages to gain a comprehensive understanding:

Liability coverage

This is one of the most fundamental types of auto insurance. If you’re found at fault in an accident, liability coverage pays for the damages you cause to another person’s vehicle or property, as well as any medical expenses they might incur as a result of the accident. In Canada, liability car insurance is mandatory. It safeguards you from the financial repercussions of being found responsible for an accident.

Accident benefits coverage

Accident benefits coverage provides benefits if you’re injured in an auto accident, irrespective of who caused it. This can include medical treatment, income replacement, and other associated expenses. Acts as a cushion against the financial impact of injuries from vehicular accidents, ensuring ongoing treatment and care.

Direct Compensation - Property Damage (DCPD)

In regions where it’s available, DCPD covers damage to your vehicle and its contents if another driver is at fault. The unique aspect is that you deal with your own insurance company regardless of who caused the accident. DCPD streamlines the claims process, allowing for faster settlements without determining fault first.

Collision coverage

Collision insurance is concerned with your vehicle. If you’re involved in an accident, regardless of who’s at fault, collision coverage ensures that the repair or replacement costs of your vehicle are covered. Especially valuable for newer or more expensive vehicles, this coverage ensures you won’t face hefty out-of-pocket expenses after a collision.

Comprehensive coverage

As the name suggests, it offers wide-ranging protection. Comprehensive coverage takes care of damages to your vehicle that aren’t caused by collisions. This includes events like theft, vandalism, natural disasters floods, fires, earthquakes, and interactions with wildlife. This coverage is particularly beneficial for those living in areas prone to severe weather conditions or high rates of vehicle theft, it offers peace of mind against unpredictable events.

Uninsured motorist coverage

Despite regulations, some drivers on the road might not have insurance or might have insufficient coverage. If you’re in an accident caused by such a driver, uninsured/underinsured motorist coverage ensures you’re not left to foot the bill. It adds an extra layer of protection, ensuring you’re covered even when others aren’t adequately insured.

Accident forgiveness

If you have this feature in your policy and get into your first at-fault accident, the insurance company won’t increase your premium. Accident forgiveness offers a safety net for long-term insurance costs, especially beneficial for those with a pristine driving record.

Top tips to help new and young drivers save on car insurance rates

Getting behind the wheel for the first time is exhilarating, but the accompanying car insurance premiums for young or new drivers often dampen the excitement. Statistically, inexperienced drivers pose a higher risk, leading to steeper insurance costs.

However, there are ways to navigate the insurance maze and secure more affordable rates, such as driving a used car, joining a family insurance policy, driver training, good grades, and more. Below you’ll find several unique tips tailored specifically for young or new drivers to help save on car insurance:

Start with a used car

One of the most effective strategies young or new drivers can employ to reduce their insurance premiums is to opt for a used car instead of a brand-new one. Used cars, with their reduced current market value, typically come with lower insurance rates as they are generally cheaper to replace or repair.

Plus, for some older used cars, the cost of comprehensive and collision coverage might not be worth it when considering the car’s overall value, further reducing your premium.

Opt for a safer vehicle

Sports cars or high-performance vehicles are a thrill but can skyrocket your car insurance premiums. As a young driver, choosing a safer, more practical vehicle can substantially lower your premium. Additionally, cars with top safety ratings or features can further discount your rate.

Add yourself to a family policy

Rather than getting a standalone policy, consider joining your family’s existing car insurance policy as an additional driver. Bundling multiple drivers or vehicles often leads to overall savings, which can reduce your individual premium.

Leverage driver training discounts

Many insurance providers offer discounts to drivers who’ve completed a certified driver’s education or training course. This not only equips you with essential driving skills but also demonstrates to insurers that you’re serious about safe driving.

Maintain good grades

Academic excellence can translate into insurance savings. Several companies offer good student discounts, recognizing the discipline and responsibility associated with scholastic achievement. Regularly achieving high grades? You might just earn a break on your premium.

Limit your mileage

If you’re not driving long distances regularly, you may qualify for a low-mileage insurance discount. Some insurers offer discounted rates to drivers who clock fewer miles than the average, so keep them informed if you’re only driving short distances.

Steer clear of tickets and claims

This might seem obvious, but safe driving is the best way to keep premiums low over time. Avoid speeding, follow traffic rules diligently, and always be aware of your surroundings. A clean record can lead to significant discounts in the long run.

Explore student-away-from-home discounts

If you or your child is heading off to college or university and won’t be driving as frequently, some insurers offer discounts. Inform them about your situation, especially if your school is in another city or state.

Regularly review and compare

As you gain experience and grow older, insurance rates can change. Make it a habit to review and compare insurance quotes annually. There might be new discounts available, or you might find a different provider offering a more competitive rate.

While young or new drivers are often faced with higher insurance premiums due to their perceived risk, there are numerous strategies to mitigate these costs. By staying informed, making savvy choices, and driving responsibly, you can enjoy the freedom of the open road without the financial burden of exorbitant insurance rates.

What is the average price of car insurance in Canada?

Given the vastness of Canada and the regional differences in regulations, driving conditions, and urban density, it’s no surprise that insurance rates can vary considerably from one province to another. While the average price can vary greatly based on several factors, Canadians can expect to pay, on average, between $1,200 to $2,500 annually for car insurance. However, provinces like British Columbia and Ontario tend to have some of the highest monthly premiums, whereas Quebec and Prince Edward Island tend to have some of the lowest. Here’s why:

Provinces with the highest insurance rates

First off, as the most populous province in Canada, Ontario has its own set of challenges. Cities like Toronto and Ottawa contribute to a dense driving environment, and areas with heavy congestion tend to have increased accident rates. Furthermore, insurance fraud has been a persistent issue in Ontario, driving up car insurance rates for honest policyholders.

As for B.C., it has a unique government-run auto insurance market through the Insurance Corporation of British Columbia (ICBC). Dense traffic conditions coupled with high rates of vehicle theft and a high cost of living, B.C. residents often face steeper auto insurance premiums.

Provinces with the lowest insurance rates

On the opposite end, Quebec and Prince Edward Island (PEI) often stand out for their comparatively lower premiums, with Quebec often having the lowest car insurance rates in Canada. The primary reason is that Quebec employs a unique hybrid system for car insurance. This system involves a public plan for personal injuries managed by the Société de l’assurance Automobile du Québec (SAAQ) and a private plan for property damage provided by private insurers.

As for PEI, with its smaller population and less congested roads, it tends to have fewer accidents compared to urban-heavy provinces. Fewer accidents naturally translate to fewer claims, allowing insurers to offer lower premiums. Furthermore, similar to Quebec, PEI’s insurance rates are also regulated. The Island Regulatory and Appeals Commission (IRAC) oversees the rates, ensuring that they remain justifiable and in the best interest of the public.

While the average cost provides a benchmark, individual rates will vary. Canadians need to shop around, compare rates, and consult insurance professionals to ensure they get the best coverage at the most reasonable price.

What determines the cost of auto insurance?

The cost of auto insurance isn’t pulled out of thin air. Insurance providers use many factors to determine how much you’ll pay for coverage, such as your location, driving record, vehicle type, usage, demographics, insurance history, etc. Each factor correlates to the risk the insurance company assumes when covering you. Let’s dive deeper into these factors and understand how they influence your auto insurance premium:


Living in urban areas 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.

Furthermore, different regions have varying insurance regulations. Some might have more mandatory coverages, while others could have more competitive insurance markets, affecting the rates.

Driving record

A driving record is a report card of your behaviour on the road. Drivers with histories of speeding tickets, DUIs, or at-fault accidents represent a higher risk to insurers. On the other hand, maintaining a clean driving record over the years can significantly reduce your car insurance rates. Many companies also offer safe driver discounts as a reward for keeping a spotless record.

Vehicle type

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 auto insurance premiums. Furthermore, vehicles equipped with advanced safety features and excellent crash-test ratings may qualify for discounts.


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.


Age, gender, and location can all influence rates. For instance, statistically, younger drivers are more likely to be involved in accidents. Young male drivers might face higher premiums due to statistical data suggesting they’re at a higher risk of accidents. Luckily, many insurance companies offer good student discounts to young drivers who maintain strong academic performance.

Insurance history

Past behaviour can be a predictor of future behaviour. Individuals with a history of frequent claims represent a higher risk to insurance companies. Conversely, a long history with few or no claims can lead to discounts. Gaps in coverage, where a person might not have had insurance for a period of time, can also negatively affect rates, as consistent insurance coverage demonstrates responsibility.

Compare cheap car insurance quotes for free with the help of BrokerLink

If all these tips and strategies sound overwhelming, reach out to our insurance professionals here at BrokerLink. We can help you navigate the complex world of insurance, compare quotes, and find the best personalized car insurance quotes tailored to your needs.

Ensuring you’re well-covered doesn’t have to break the bank, and with the right guidance, you can drive with peace of mind knowing you’re protected without overspending. Contact BrokerLink today for your free car insurance quote.

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FAQs for how to get cheap car insurance

How can I lower my car insurance in Canada?

To lower car insurance in Canada: compare insurance company quotes, bundle policies, raise deductibles, choose safer vehicles, maintain a clean record, limit driving distances, inquire about available discounts, and review your policy annually.

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.