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How to lower your car insurance premium in Ontario

Jun 12, 2020 5 minute read

How to lower your car insurance premium in Ontario

In the province of Ontario, every single driver is required to have a current and up-to-date auto insurance policy. This policy must include four mandatory coverages: Liability, Accident Benefits, Direct Compensation and Uninsured Automobile.

Unfortunately, Ontario has some of the most expensive rates in the country, in regards to auto insurance premiums. This can make finding a policy quite difficult for some drivers. However, there are some ways to help reduce your premium and save some money on your insurance.

How is my car insurance rate determined?

Every individual insurance policy will have a different cost. This will be due to that fact that many different factors can actually influence your car insurance rate. At BrokerLink, we go through each of our clients' individual information to make sure that they receive all of the possible savings offered for their circumstances.

While the list of factors that determine your rate is quite extensive, we have compiled a few of the most common factors car insurance companies consider when determining rates in Ontario:

  • Your Age: Did you know that younger drivers tend to have higher premium rates? This is because they fall into a demographic that tends to have a lot more accidents. As you get older, your insurance rate is likely to go down.
  • Your Driving History: The number of years you’ve had your license, any past speeding tickets and any accidents will all be considered when determining your rate. Having a good driving record can save you money, as insurance providers see you as a low risk client, while having a bad driving record can make your premiums go up significantly.
  • Where You Live: The city in which you live in can affect the price of your premium. For example, Ottawa’s premium rates are actually quite low compared to other cities in Ontario, while Toronto’s rates are quite expensive in comparison.
  • Frequency of Use: Your premium rate will be affected depending on how often you actually drive your vehicle. For example, someone who drives to and from work every day will pay more than a driver who uses public transit to commute and only drives on the weekend.
  • The Make and Model of Your Vehicle: Some makes and/or brands of cars tend to be more costly to insure than others. There are many different reasons for this, including the fact that some cars are more prone to theft, and some have more expensive and/or less common parts.
  • The Level of Coverage You Choose: The level of coverage you choose to have on your policy will impact the price of your premium.

How can I lower my premium rate in Ontario?

There are many different ways that you can save on your car insurance in Ontario. We have listed four of the most common and recommended ways to save below!

1. Bundle your policies

Bundling your policies is a great way to save some money on your premium. If you have multiple insurance policies, whether they be for your home, your business or your cottage, try and get them with the same insurance company. Most companies allow for you to bundle these policies together, which could save you a significant amount of money.

2. Take advantage of discounts

There are so many discounts available for car insurance policies in Ontario. You probably are already aware of some, including the winter-tire discount and the renewal discount. However, there are also a lot of amazing deals our there they many people simply don’t know about. Here are a few that you should be aware of:

Private Parking Discount

Did you know that where you park your car could make a difference to your premium rate? A car that is parked in a private garage or driveway is way less likely to be stolen or damaged than one that is parked publicly on the street! Adding a private parking discount to your policy can save you money.

Safe Driving Discount

Many insurance companies offer a safe driving discount, generally giving you up to 30 per cent off of your premium. Talk to your broker and see if this is available for you!

Good Student Discount

Did you know that students are eligible for discounts on their car insurance simply by having good grades in school? If you have an average of at least 80 per cent, students under the age of 25 years old are eligible for a 15 per cent discount off of their premiums.

Retiree Discount

If you are a customer who is retired, you may be eligible for an additional discount. This discount can save you up to 15 per cent off of your premium for accidental benefits coverage.

University Discount

When your child moves away for post-secondary, you’ll still want to keep them on your policy so that they are covered when they come home. However, it doesn’t make that much sense to pay the full premium when they won’t be driving the vehicle for the majority of the year. The university discount will provide you with 50 per cent off of your child’s premium while they are away at school!

3. Adjust your payments

There are many options for you when it comes to payment schedules for your premium; some of these options can save you more money than others. Firstly, paying your premium as one-time, yearly payment can be cheaper in the long run than paying it on a monthly basis. This is because some insurance providers will give you a discount for paying one larger lump sum.

Secondly, increasing your deductible can help to minimize the cost of your premium. Many policy holders choose this option, as you only have to pay for your deductible when making a claim. However, this will really only benefit you, and stay inexpensive, if you very rarely make claims and thus avoid paying your deductible. By increasing your deductible, you can generally save anywhere from 10 to 40 per cent on your premiums.

4. Review your existing policy

You may not even be aware of some of the costs and features that are included on your policy. This is why it is extremely important to go over your policy and review it with your broker. If you have a safe driving history, and rarely make any claims, you may not need to have any additional coverages on your policy. This can also apply if you drive a relatively old vehicle. As it depreciates in value, you may not see the need to have coverages such as collision on your policy. Having only the minimum provincial coverages on your policy, without any of the add-ons, can ultimately save you quite a bit of money.

If you're looking for an Ontario car insurance broker who can help you save money on your premium, BrokerLink is here for you. BrokerLink has been helping Canadian drivers find the best insurance at competitive rates since 1991. Our brokers live in the communities we work in, which means we know what coverage makes the most sense for you. As one of the largest insurance brokerages in Canada, you can have confidence that we are reliable.