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8 minute read Published on Jul 27, 2026 by BrokerLink Communications
Car insurance is pricey in Ontario. There’s no denying that. In fact, according to the province’s insurance regulator, the average annual premium has increased by roughly 22% between June 2023 and June 2025.
The good news is that your rate isn’t arbitrary and it isn’t permanent. A few small changes and the right conversations can often help you bring it down. Read on to learn how you can lower your car insurance premiums in Ontario.
Your auto insurance premium is based on a mix of things about you as a driver and choices you make about your policy. Some of those factors are mostly fixed, like:
Your driving history (tickets, at-fault collisions)
Where you live and drive
Your age and years of driving experience
The vehicle you insure
While others are adjustable, such as:
Your coverage levels and deductibles
How much you drive
Whether you bundle policies or use telematics
When and how you shop around
Your premium is based partly on who you are as a driver and partly on how your policy is set up. So while you can’t change what’s already happened, you can absolutely change what you’re paying for now.
One important thing to note is that auto insurance companies in Ontario cannot use your credit score to price your car insurance. This regulatory rule is enforced by the Financial Services Regulatory Authority of Ontario (FSRA). So while your credit score can affect loans, mortgages and help with some other insurance products, it can’t affect your Ontario auto insurance rate.
There’s no single trick that magically drops your rate overnight. But there are a handful of practical things that tend to move the needle, especially if you can stack a few of them together. Based on current regulatory guidance from the FSRA and industry sources, here are the most reliable ways Ontario drivers can lower their premiums in 2026:
Things like tickets, at-fault collisions and serious convictions like distracted driving or driving impaired can all make you more expensive to insure. In Ontario, most minor convictions stay on your record for about three years and at-fault accidents usually affect your insurance premiums for up to six years. That means the longer you drive defensively, keep your speed down and maintain a clean driving record, the more your premium can slowly come back down.
If you’re a new or young driver, taking a driving course that’s been approved by the Ministry of Transportation (MTO) can help in a few ways. It can:
Help you feel more confident behind the wheel
Shorten the time between your G licence stages
Sometimes unlock beginner discounts
Some insurers also offer discounts if you complete an approved defensive driving course, especially if you’re a new or young driver.
Insurance pricing looks beyond the sticker price and at the actual make and model of the vehicle itself. Insurance companies want to know:
How often is it stolen
How expensive is it to fix
How safe is it
How often are claims filed for it
A sensible, mid-range car with good safety ratings often costs less to insure than a luxury or high-performance vehicle. So, if you’re shopping for a new (or used) car, you may want to ask about insurance costs with a local insurance broker before you commit.
A higher car insurance deductible usually means a lower premium. Agreeing to pay more to file a claim means your insurance company pays less. For that, they may offer you a 5% to 10% discount, depending on the insurer and your driving profile. Here’s an example:
According to the latest data from the FSRA, the average annual car insurance premium in Ontario is about $2,120. If you increase your collision coverage deductible from $500 to $1,000, that could work out to about $100 to $210 a year. After five or so years without a claim, you’ll have saved well over the extra $500 you’d owe if you eventually made one.
Bundling policies is one of the easiest ways to save. Insuring your car and your home, condo or apartment with the same company often comes with quite a big discount and it can also make billing and claims simpler.
You may also receive a notable multi-policy discount when you own more than one vehicle, like a motorcycle or recreational vehicle and bundle them together. If you already have multiple auto policies, it’s always worth asking your broker if it would be worth bundling them under one plan.
The more time you spend driving, the more opportunities there are for something to go wrong. For example, someone commuting 25,000 kilometres a year on busy highways is statistically more likely to be in a collision than someone who mostly drives locally and only logs about 8,000 kilometres.
This lower mileage means lower risk and often leads to lower premiums. So, if your commute changes, you start working from home or you retire, let your insurance provider know. Just be honest. If your driving habits aren’t represented accurately, it can create problems if you ever need to make a claim.
Telematics or usage-based insurance (UBI) programs use an app or plug-in device to look at how you drive. They may track:
Your speed
How hard you brake
Your acceleration
When you tend to be on the road
Drivers who show good driving habits while participating in UBI or telematics programs can earn discounts, often somewhere between 5% and 25%. But the trade-off is privacy. You’re choosing to share driving data with your insurer and whether that feels worth it depends on the person.
If more than one person drives in your household, who drives which car can affect what you pay. Adding a new or young driver to the most expensive or most powerful vehicle you own usually costs more. It’s generally better for your rates to put them on a lower-value or lower-risk car.
On the other hand, adding an experienced driver with a clean record to the main vehicle can sometimes help keep your rates lower. One important rule is that everyone who regularly drives your car has to be listed on the policy. Leaving someone off to save money can lead to denied claims and other serious problems later.
You can help reduce your theft risk and, in turn, possibly lower your premium if you:
Park in a garage (if you can) instead of on the street
Use things like a steering wheel lock or other visible anti-theft devices
Install an immobilizer or tracking system, especially on high-theft models
Some insurers will offer discounts if you add approved anti-theft measures to your car.
Paying monthly often means paying extra in financing or admin fees. By paying once a year, you can avoid these monthly fees. It also helps to avoid missed or returned payments, which can lead to policy cancellations or make it harder to get good rates later.
Not every insurer prices risk the same way, so the same driver can get very different quotes from different companies. Try to start shopping around a couple of weeks before your renewal date. A local broker can help you by comparing several insurers at once and pointing out better options, without you having to chase quotes yourself.
Things change and your policy should reflect that. A move, a new job or commute, a new driver in the household or a new vehicle can all affect what you pay. It’s also a good time to look at whether your coverage still makes sense:
Beyond mandatory coverage, many drivers add collision and comprehensive coverage. But if your car is more than 10 years old and worth much less than it used to be, you might decide to drop collision coverage.
And if you’ve never revisited things like direct compensation–property damage (DCPD), you can talk to your broker about whether opting out with OPCF-49 makes sense for your situation or if keeping that protection is still the safer choice.
A quick yearly check can catch outdated information and uncover savings you might otherwise miss, like a new discount for the set of winter tires that you recently bought.
Depending on where you’re at in life, the insurance side of things can look a little different. Let's take a look at a few scenarios:
Higher rates are common at the start, but things like approved driver training, staying on a parent’s policy as an occasional driver and driving lower-risk vehicles can help.
Without a local insurance history, premiums can start higher for newcomers. Bringing proof of previous driving or insurance experience can help show you’re not starting from zero.
As a retiree, things like driving less and no longer commuting can sometimes lower your premium once your insurer has the right information.
There’s a lot of half-true advice about car insurance. Here’s what’s actually true:
You may have heard of the following myths:
Myth
What’s actually true
Credit score affects Ontario auto insurance rates
Ontario insurers are not allowed to use your credit score to price auto coverage.
Red cars cost more to insure
Colour isn’t a rating factor. It has no impact on your premium.
Older vehicles are always cheaper to insure
Not always. Theft risk, repair costs and parts availability still matter.
Putting a car in someone else’s name is cheaper
This can be misrepresentation and can cause serious problems if you ever need to make a claim.
Avoid doing the following:
Mistake
Why it causes problems
Misstating mileage or who drives the car
If your policy doesn’t match reality, claims can be delayed, reduced or denied.
Not reporting accidents
Even small incidents can come back later if they’re not properly documented.
Letting a policy lapse
Gaps in coverage can make you look riskier and push future premiums up.
Cutting liability limits to save money
Liability claims can be very expensive and minimum coverage often isn’t enough.
Renewal time is a good moment to step back and make sure your insurance still lines up with how you actually live and drive. Here are some questions to ask yourself and your broker before you click “renew."
Has my commute or mileage changed?
Do I still need collision on this vehicle?
Do I still have the right liability limit?
Am I eligible for new discounts?
Should I consider telematics?
Should I change my collision/comprehensive deductibles?
Is OPCF-49 still right for me?
If you’re looking to save money on your car insurance rates, you’ve come to the right place. BrokerLink is a leading insurance brokerage in Canada with locations across the country. Our experienced brokers have access to some of Canada’s top insurance companies, allowing us to customize an Ontario car insurance plan that’s tailored to your unique insurance needs and budget.
You can reach us by phone, email or in person at any one of our locations throughout Canada. You can also try out our free online quote tool, which can provide you with a competitive insurance quote in minutes.
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