How to save on car insurance in Canada

13 minute read Published on Dec 16, 2020 by BrokerLink Communications

A father adjusting his kids safety seat belts

They say that life is a journey; for many of us, that journey involves a trusty automobile to navigate the twists and turns of our daily routines. Whether you’re commuting to work, embarking on a weekend adventure, or simply running errands, your car is an essential companion on the road of life. But as any seasoned driver knows, owning a vehicle comes with its fair share of responsibilities, and one of the most significant obligations is securing the right car insurance.

At BrokerLink, we understand that navigating the world of car insurance can be as complex as navigating the highways during rush hour. From mandatory coverages like third-party liability, uninsured motorist coverage, and accident benefits to optional coverages like accident forgiveness or collision, not to mention the many variables and providers to choose from, it’s easy to feel overwhelmed. That’s why we’ve crafted this comprehensive guide, designed to help you demystify the process and empower you to make informed decisions about your car insurance coverage.

Join us as we take you on a journey of discovery, exploring strategies and tips that will not only protect your precious ride but also lighten the load on your wallet. Whether you’re a seasoned driver or a newbie behind the wheel, there’s always room for improvement when it comes to managing your car insurance costs. From understanding the factors that influence your insurance premiums to uncover hidden discounts and finding the perfect coverage for your needs, BrokerLink has got you covered.

How much is car insurance in Canada?

Unlocking the mysteries of car insurance costs in the Great White North can feel like navigating a maze of variables and factors, each influencing the digits on your premium. If you find yourself wondering how much your Ontario car insurance will be per month or anywhere else in Canada, there are several factors you’ll need to consider, such as where you live and what your coverage limits are. Below, we go into detail about some of these factors:


Canada is a vast country with ten provinces and three territories, and each jurisdiction has its own regulations and insurance market. As a result, the cost of car insurance can vary significantly. For instance, car insurance in Ontario is priced differently than car insurance in Nova Scotia. Furthermore, within provinces and territories, urban areas generally have higher insurance premiums compared to rural areas. This is because urban areas typically have higher traffic congestion, increased risk of accidents, and more frequent cases of theft and vandalism.

Type of coverage

The type of coverage you choose has a substantial impact on your insurance costs. Just having basic liability insurance, which covers damage you cause to others, is usually more affordable than having additional comprehensive coverage, which includes protection for your own vehicle, including theft and damage caused by factors like weather or vandalism.

Vehicle make and model

The make and model of your car directly affect your insurance rates. High-end or luxury vehicles and sports cars often have higher premiums because they are more expensive to repair or replace. Conversely, safer vehicles with high safety ratings may result in lower insurance costs.

Driving history

Your driving record plays a significant role. Drivers with a clean driving record—no accidents, claims, or traffic violations—tend to pay lower premiums because they are considered lower risk. On the other hand, those with a history of accidents or tickets may face higher rates. Being at fault in accidents can significantly raise your rates, especially if there is a history of multiple accidents.

Age and gender

Young drivers tend to pay higher insurance premiums as they statistically have a higher likelihood of accidents. Additionally, statistically, younger male drivers may have higher rates than younger female drivers.

Annual mileage

Drivers who log more miles each year may pay higher premiums because they are on the road more often, increasing the probability of accidents.

Deductible amount

The deductible is the amount you’re responsible for in the event of a claim. Choosing a higher deductible can reduce your premiums. However, this also means you’ll need to pay more out of pocket if you make a claim.

The insurance company

Different insurance companies use various algorithms and risk assessments, so it’s crucial to shop around and get quotes from multiple insurers to find the best rate for your specific circumstances.

Additional coverage

Adding optional coverages like collision, comprehensive, roadside assistance, rental car coverage, or accident forgiveness can increase your premium but also provide additional protection and convenience.

Your roadmap to affordable car insurance coverage awaits

If you’re like most car owners, you probably have a love-hate relationship with car insurance. You love the peace of mind it offers, knowing you’re financially protected in case of an accident or mishap. However, you might not be too thrilled about the monthly premiums chipping away at your budget. But fret not, for there are ways to balance that equation and save money on car insurance. At BrokerLink, we’re here to help you rev up your savings without sacrificing essential coverage:

Shop around with BrokerLink

Shopping around for car insurance is a fundamental step in finding the best deal. It’s the first step to saving money on car insurance, and that’s where BrokerLink shines. We’re your local insurance brokerage with over three decades of experience, and we’re experts at finding the right coverage for your unique needs and budget.

At BrokerLink, our experienced insurance brokers are well-versed in the insurance market. We take the time to understand your specific needs, driving habits, and financial constraints. Then, we leverage our network of insurance providers to obtain and compare quotes, ensuring you receive competitive rates tailored to your situation. Our goal is to simplify the process, saving you both time and money.


Bundle your policies

Bundling your insurance policies can be a game-changer. If you have multiple auto insurance policies, such as home insurance, auto insurance, and cottage insurance, consider bundling them with the same company, as it often leads to substantial discounts. Beyond the financial benefit, bundling offers convenience, as you’ll have all your policies in one place, making management and claims easier.

Raise your deductible

Your deductible amount directly affects your premiums. By choosing a higher deductible, you essentially take on more financial responsibility in the event of a claim. In return, your car insurance company rewards you with lower monthly premiums. This strategy can be particularly beneficial if you’re a safe and cautious driver who doesn’t anticipate frequent claims. Before you make this choice, take the time to assess your financial situation carefully. Calculate the amount you can realistically cover from your own funds in case of an accident.

Become a better and safer driver

Safe driving is not only a matter of personal safety but also a major factor in determining your car insurance rates. Insurance providers typically offer lower rates to drivers with clean records—those who avoid accidents, traffic violations, and claims. Consistently practicing safe driving habits can help you keep your premiums in check. Make sure you check with your broker when shopping for a policy to see if the insurance company offers this advantage! In addition, it’s essential to consistently practice safe driving and adhere to traffic regulations while operating your vehicle. Doing so will decrease your probability of being involved in a collision, ultimately helping you maintain a lower car insurance premium. Learn more about how accidents can affect car insurance rates.

Consider usage-based insurance

Usage-based insurance (UBI) is a modern approach to car insurance that rewards safe driving behaviour. It involves installing a device in your vehicle or using a mobile app to track your driving habits. Factors such as your speed, braking patterns, and the time of day you drive are analyzed. If you’re a responsible driver, UBI can lead to significant savings, as you’re essentially paying for the miles you drive and your actual driving behaviour.

Choose your vehicle wisely

Before purchasing a new vehicle, it’s wise to consider the potential auto insurance costs associated with different makes and models. Car insurance companies often categorize cars into groups based on factors like safety features, theft rates, and repair costs. High-performance or luxury vehicles tend to have higher premiums due to the increased expense of repairs and replacement parts. Opting for a vehicle with good safety ratings and lower associated costs can lead to more affordable insurance premiums.

Review and adjust your coverage regularly

Car insurance policies provide a range of coverage options, but not all of them may be necessary for your current situation. Life circumstances change, and so do your insurance needs. The necessity of specific coverage depends on factors like your vehicle type, driving habits, frequency, and, naturally, your financial constraints. Regularly review your coverage with your BrokerLink advisor to ensure it aligns with your current situation. For example, if you’ve paid off your car loan, you may no longer need collision or comprehensive coverage, which can result in immediate savings.

Always ask about discounts

Insurance companies offer various discounts, and it’s worth exploring which ones you qualify for. BrokerLink can help you identify and maximize these discounts. Ask your BrokerLink auto insurance broker to help you uncover various savings opportunities and more!

Take defensive driving courses

Completing a defensive driving course not only enhances your driving skills but can also lead to insurance discounts with certain providers. These driver training courses teach valuable defensive driving techniques that reduce your risk of accidents, making you a safer and more responsible driver in the eyes of insurers.

Review recent changes to your driving habits

If your driving habits have changed and you’re spending less time on the road, it’s essential to inform your BrokerLink broker. Reduced mileage can translate to lower premiums, such as a low mileage car insurance policy, as you pose less risk to insurers when you’re driving less frequently. So, if you suddenly find your workplace closer to home or if you’ve transitioned to remote work, reducing your car usage, ensure that you inform your insurance provider about these changes.

Consider a safe parking location

Where you park your car can influence your insurance rates. If possible, park your vehicle in a secure garage or a well-lit area. Cars parked on the street or in high-crime areas are at a higher risk of theft or vandalism, leading to increased premiums. By taking steps to protect your vehicle, you not only enhance its safety but also potentially lower your insurance costs.

Install anti-theft devices

Installing anti-theft devices, such as car alarms, GPS tracking systems, steering wheel locks, and immobilizers, sends a powerful message to your insurance company that your vehicle is less susceptible to theft or vandalism. By reducing the risk of such incidents, insurers often reward responsible vehicle owners with lower insurance rates, making it a smart and proactive choice for not only safeguarding your prized possession but also for keeping your wallet a little heavier.

Maintain good credit

In some Canadian provinces, your credit score can be a factor that affects your insurance rates. Insurers may use your credit score to assess your financial stability and likelihood of filing a claim. To potentially lower your premiums, maintain a good credit score by paying bills on time, reducing outstanding debts, and managing your finances responsibly.

Common types of car insurance discounts

In addition to the strategies and advice mentioned above, insurers offer discounts and various special offers to their customers. Here are some of the discounts that you might be eligible for:

Multi-vehicle discounts

A multi-vehicle discount, also known as a multi-car discount, is a cost-saving benefit offered by insurance companies to policyholders who insure more than one vehicle with the same insurance provider. This discount is designed to encourage households or individuals with multiple vehicles to consolidate their insurance coverage under a single insurer. This discount is an excellent way for families or individuals with more than one vehicle to save on car insurance premiums while maintaining comprehensive coverage.

Student discounts

Student discounts on car insurance are cost-saving benefits offered to eligible student drivers by insurance companies. These discounts aim to make auto insurance more affordable for students, who often face higher premiums due to their limited driving experience and age. One of the most common types of auto insurance discounts for students is the good student discount. To qualify, students generally need to maintain a specified grade point average (GPA) the idea is that students with good academic performance are seen as responsible and, therefore, less likely to engage in risky driving behaviours.

Group discounts

Group discounts for car insurance are special cost-saving benefits offered by insurance companies to members of specific organizations, affiliations, or groups. These discounts are designed to provide policyholders with reduced insurance premiums as a reward for their association with the affiliated group.

Good driver discounts

A good driver discount is a cost-saving incentive offered by insurance companies to policyholders who have demonstrated safe and responsible driving habits over a specific period. The primary criteria for receiving this discount are typically a clean driving record, which means no at-fault accidents, traffic violations, or insurance claims within a designated time frame.

Senior discounts

Senior discounts on car insurance are special cost-saving incentives designed for older drivers, typically those aged 50 and above. These discounts acknowledge the experience and often safer driving habits of older individuals. For example, many insurance companies offer mature driver discounts to policyholders who complete an approved defensive driver training course or safe driving program to help refresh their skills, stay updated on traffic laws, and become safer drivers.

Low-mileage discounts

A low-mileage discount is a cost-saving incentive offered by many insurance companies to policyholders who drive their vehicles fewer miles annually than the average driver. This discount acknowledges that individuals who drive less frequently are generally at a lower risk of being involved in accidents. Visit our blog to learn how to calculate your mileage.

Loyalty discount

A loyalty discount for car insurance is a cost-saving incentive provided by insurance companies to reward and retain long-term customers who have consistently maintained their policies with the same insurer over an extended period. This type of discount recognizes customer loyalty and encourages policyholders to stay with their current insurance provider.

How can I purchase car insurance through BrokerLink?

With BrokerLink, it’s a straightforward process, and our experienced brokers are here to assist you every step of the way! Start by gathering all of the necessary documentation for your car insurance quote. Next, get in touch with us. You can do this by visiting our website, using our free online quote tool, or by calling or visiting one of our 200+ insurance offices throughout Canada. BrokerLink will then gather insurance quotes from multiple insurers to find the best coverage options and rates that suit your needs.

Based on your preferences and needs, you and your BrokerLink broker will work together to customize a policy that meets your requirements. This may include selecting coverage levels, setting deductibles, and adding any additional coverage options you desire. Once you’ve chosen a policy, your broker will assist you in completing the necessary paperwork and documentation.

Why partner with a BrokerLink insurance broker

Partnering with a BrokerLink insurance broker offers a multitude of advantages that can simplify your insurance experience and provide you with valuable benefits. Since 1991, the BrokerLink team has been dedicated to finding insurance policies that meet the needs and budgets of our customers. They are highly trained professionals with extensive knowledge of the insurance industry, enabling them to provide expert advice tailored to your specific needs. Whether you’re seeking coverage for your home, auto, business, or other insurance needs, our expertise ensures you make well-informed decisions.

BrokerLink offers peace of mind throughout your insurance journey. Our brokers act as advocates for you, particularly in the unfortunate event of a claim. They are there to assist you every step of the way, ensuring your interests are protected and helping you navigate the claims process seamlessly. With BrokerLink, you not only gain the convenience of managing all your insurance needs in one place but also the assurance that your coverage is expertly tailored to your evolving circumstances, providing you with the ultimate peace of mind.

Contact BrokerLink to learn more about how to save on car insurance

Saving money on car insurance doesn’t mean sacrificing essential coverage. With the guidance of BrokerLink, you can implement these strategies to reduce your insurance expenses while maintaining the protection you need on the road. Keep in mind that your insurance needs may evolve over time, so it’s crucial to stay in touch with your BrokerLink advisor and review your policy regularly to ensure it continues to meet your changing circumstances. Contact BrokerLink today to start your journey toward more affordable and comprehensive car insurance coverage. We’re here to help you hit the road with confidence, peace of mind, and extra cash in your wallet.

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FAQs for how to save on car insurance

How much should I pay monthly for car insurance?

When it comes to insurance rates, the answer you’ll often hear is: It depends! Your monthly insurance premium is influenced by numerous factors, including your location, insurance history, driving record, and age. These variables collectively determine the rate you’ll pay each month.

Does my driving experience affect my car insurance rates?

Yes. When insurance companies set your rates, they consider two crucial factors: your driving experience and your driving history. If you have limited experience behind the wheel, it’s likely that your insurance premiums will be higher. On the other hand, if you boast a long history of accident-free driving, you can anticipate lower insurance rates.

Do newer cars have higher insurance premiums?

It’s a bit of a mixed bag, we admit. Determining your insurance costs isn’t straightforward because various factors come into play. Safety features in newer cars, for instance, might help lower your rate, but your insurance history, age, location, and numerous other variables also play pivotal roles in determining the final amount you’ll pay.

If you have any questions, contact one of our local branches.