People love to save money. Don’t you? We’ll drive across town to save a few bucks on fuel, we bundle our phone & cable, use loyalty cards, and scour the weekly grocery flyers to find the best deals.
But when it comes to saving on car insurance in Canada most people don’t take action. They let their policy renew automatically, they fail to compare options, as a result, they are missing out on savings.
With premiums on the rise, it has never been more important for drivers to find ways to save money. Want to save more on your car insurance? All drivers do! We have all the best savings tips to help you lower your costs.
Here Is Our List Of The Top 40 Tips To Save On Car Insurance
Saving is much easier than you think. With these tips you could save hundreds every year!
1) Compare Quotes
Just like the well-known real estate mantra for home buyers and sellers is location, location, location, when it comes to saving on automobile insurance, one of the most important things you can do is compare.
If you’re only getting one quote from a single insurer, what are the odds that it’s the lowest price out there?
2) Get Savings Advice From An Insurance Expert
Working with an advisor is a great option to save on car insurance quotes in Ontario and other parts of Canada. They are insurance experts who work for you. It’s their job is to help you find the best prices from the companies they work with.
They can help you compare options, make sure your coverage meets your needs, and provide expert advice. They are your advocate when dealing with insurance companies.
3) Bundle Up
Do you drive? Rent or own a home? Then you can benefit from a home and auto insurance bundle. Combining will immediately qualify you for savings between 20% on auto and 50%. Ask your insurer for more information about how to combine your policies.
4) Sign Up For Usage-based Insurance
These are Usage-based insurance or telematics programs that reward good drivers.. They monitor driving habits such as quick acceleration, hard braking and the time of day you drive.
Typically you receive a 10% discount as soon as you sign-up. And depending on your driving habits, you can save as much as 30% when it comes time to renew. These programs are great for all good drivers but young drivers and new drivers can really benefit as it helps them build insurance history much quicker.
5) Increase Your Deductible
Insurance deductibles and costs are directly linked to each other. By raising your car insurance deductible your premium will decrease. They can drop by as much as 15% to 30% on your collision and comprehensive coverage depending on how much you increase your deductible.
6) Remove Unnecessary Coverage On Older Vehicles
With the diminishing value of an aging vehicle, you’ll want to determine if the deductible you’ll pay in the event of a claim and if what you pay is worth it.
Consider this rule of thumb : If your car is worth less than $3,000, you probably want to drop the collision insurance and comprehensive insurance.
7) Install An Anti-theft Device
One of the reasons insurance costs are more in Ontario, is because auto theft is more prevalent than in other provinces in Canada. Having an anti-theft device will help lower your costs and make your vehicle less of a target for thieves.
Whether you have a high-tech alarm system that shuts down your fuel pump or starter motor, or a lower-tech visible “club-like” theft deterrent, you will qualify for a savings.
8) Choose A Vehicle That Is Less Likely To Be Stolen
The vehicle you drive impacts your rates, particularly if it is frequently targeted by thieves. How often is your make and model of car is stolen? According to the Insurance Bureau of Canada (IBC), “How often your make and model of car is stolen is one of the factors insurers use to set your insurance premium.”
9) Drive Less
If you only use your vehicle to drive short distances, for example, 5 km or less back and forth to work, you should be paying a lower amount than someone driving the same vehicle further for their daily commute. Talk to your advisor about how much you drive to see if there is a low mileage discount available.
10) Ask About Discounts
wallet with Canadian bills showing
There are many types of discounts available. Car insurance discounts can vary between providers so ask about the discounts you may be eligible to receive.
11) Invest In Driver Training
Insurance is much more expensive for new and young drivers who don’t have a lot of driving experience or a history as an insured driver. Taking a Ontario Ministry Of Transportation approved drivers training course will qualify young and new drivers for additional savings.
More importantly, it will teach you how to become a safe and effective driver and establish good driving habits.
12) Keep A Clean Driving Record
Keeping a clean driving record is one of the best ways to keep your costs down. If you have traffic tickets on your record or have been involved in an at-fault accident, you can expect your costs to increase at renewal time.
Drive safe – avoid distracted driving, obey all traffic signs and rules, and stay home if road conditions are poor.
13) Choose An Insurance Friendly Vehicle
The type of vehicle you drive impacts your costs. More expensive and rare vehicles cost more to insure. For example, you can expect to pay more for a luxury sports car than a sedan or SUV.
If you are in the market for a new vehicle, consider premium costs as part of your decision making process. Insurance friendly vehicles have great safety ratings, are less prone to break downs, and are not common targets for thieves. Find out the cheapest cars to insure.
14) Go With A Green Vehicle
Driving hybrid car or electric car is not only good for the environment, it’s good for your wallet too! Get a discount of up to 10% for drivers with hybrid or electric vehicles.
15) Multiple Vehicles
Do you have multiple vehicles in your household? Save up to 10% for combining all vehicles under the same policy. This means each vehicle insured will save up to 10%.
16) Use Winter Tires
Using winter tires makes driving safer. It provides drivers with better traction, helps them stop quicker and more effectively in snowy conditions, gives you peace of mind. Get up to 5% for using winter tires.
17) Pay Your Premiums In Full
Paying your premium in full rather than paying monthly or quarterly will save you money. Insurers charge an administrative fee to process monthly payments. You will not pay this fee by paying in a lump sum.
18) Drive A New Car
Did you know you can qualify for a discount for driving a new car? When you purchase a new vehicle that is less than 3 years old you can save up to 10%. Some restrictions may apply.
19) Senior Drivers
Are you a senior? Recently retired? Over 50? Most insurers offer discounts to retirees, seniors, and mature drivers over 50 with good driving records. In some cases you could pay up to 10% less.
20) Be A Loyal Customer
Insurers like loyal customers. Customers are rewarded when they renew each year with the same insurer. The longer you are with the company, the greater the savings.
21) Study Your Way To Insurance Savings
Are you a full-time student between the age of 16 and 25? If you have good grades, you may be rewarded with savings of up to 10%. You may need to provide a report card or transcript to qualify.
22) Stay Claims Free
Remaining claims free is important to capitalize on savings. Be strategic about filing smaller claims. Considering your deductible amount, does it make sense to file a claim and risk an increase? Always assess your options before deciding to file a car insurance claim.
23) Out of Town Students
Do you have children that are away for college or university? Make sure to notify your insurer. If they are listed on your policy, you can save up to 30% while they are away studying.
24) Alumni Or Professional Associations
Many post-secondary institutions and professional associations offer lower group prices for their members or alumni. If you are part of a professional group or graduate of a post-secondary institution, you pay qualify for a group rate.
25) Review Annually
Back of a car with hatch up showing kids feet and luggage
Insurance policies typically last for one year. A lot can change in a year. Reviewing it each time it comes up for renewal is an opportunity to assess your needs, find new discounts, and adjust your policy to cut costs.
26) Graduated Licensing For New Drivers
We all know that young drivers pay the most for insurance. Even without a full licence, there are savings available as new drivers graduate through each level of the graduated driver’s licensing program. You can save 10% when you move from your G1 to G2 and another 10% when you get your full G license. Get your full license as soon as possible to pay less.
27) Make Sure Your Information Is Accurate
Costs are determined based on the information you provide. Always review your policy to ensure the details about your driving history, vehicle, and personal information is correct. An error could cost you more money.
28) Don’t Over Insure
More is not always better when it comes to insurance. You can have too much and it cost be costing you in the form of higher payments. Some types of coverage may not be applicable to you and increasing your limits too high may not make financial sense. Make sure you have the right amount for your specific driving needs.
29) Park In The Garage
Parking in a garage or a private driveway as opposed to the street or in a public lot could qualify you for a better price. Parking in a garage keeps your vehicle safe and reduces the odds of it being stolen, a claim being filed for weather damage, or having your vehicle damaged or vandalized.
30) Drive Safe
Focusing on safe driving practices is your best defense to prevent an accident. Pay attention to your surroundings, adjust your driving based on weather conditions, and avoid distracted driving.
31) Avoid Adding Costly Vehicle Modifications
Adding aftermarket parts and car modifications will increase its replacement value, increase repair costs, and make it more likely to be targeted for theft. All of these factors could increase your rate. Think about the repercussions before making changes to your vehicle.
32) Avoid A Lapse In Insurance
Having a gap in your history as an insured driver is not a good thing. Maintain your record as an insured driver as long as possible. A lapse could impact your premiums and make it more difficult to get insured in the future.
33) Consider Installing A Dash Cam
Have you thought about installing a dashboard camera? They are a great safety feature. They can be a valuable asset to have if you were involved in an accident, have your vehicle stolen or targeted as part of an insurance fraud ring.
34) Don’t Automatically Renew
Many drivers simply allow their insurance to automatically renew. While automatic insurance renewals are convenient, you could be leaving money on the table. Policy renewal time is your opportunity to compare options and look for a better price. Don’t pass it up!
35) Location, location, location
Where you live can have a large impact on your coverage. Your province, city, and even your postal code are factored in when insurers determine costs. If you are planning on moving, make sure you consider the impact on your rates as part of your decision.
36) Choose Drivers Wisely
The drivers you include as an occasional driver driver on your policy will influence how much you pay for insurance. Adding new, inexperienced, or bad drivers will increase costs.
37) Improve Your Driving Record
Accidents happen. Drivers get tickets for traffic infractions. It’s common. If you have a couple blemishes on your driving record you can get lower premiums by working to improve your driving record. Avoid getting any additional tickets or being involved in at fault accidents. Once your ticket or accident is due to come off your record, make sure it is removed and notify your insurer.
38) Combine Insurance With Your Partner
Combining households? Moving in with your partner or even a roommate? Why have two separate policies when you can have one? Combine insurance to take advantage of a variety of discounts.
39) Make Updates When Things Change
Whether you are moving, need to add a driver, are getting a new car, or need to update your personal information, updating your policy could result in you saving more.
40) Don’t Miss A Payment
Missing an insurance payment or two could be a costly mistake. Missing a payment is grounds to be cancelled for non-payment. If you are cancelled, you could have issues getting coverage or pay a lot more. Set up automatic payments and always pay on time.
Can You Pause Or Put Your Car Insurance On Hold?
What you need to know about putting your auto insurance on hold with OPCF 16/17
white car parked outside house
Has there been a change in your driving habits? Are you considering putting your insurance on hold to save money? More people are working from home and have had a change in their commute.
Putting your car insurance on hold is possible if you do it the right way. If you cancel outright, it can cost you more money than you save when you need to get insured in the future. Plus, you may need to pay terminations fees, and gaps are also potential red flags for insurers.
Although you are not driving your vehicle as much, you still need to have insurance. This is even if you take it off the road. You’ll want to protect it from theft, vandalism, and weather damage. Here’s what you need to know if you are considering suspending your policy.
Here’s what you need to know if you are considering suspending your policy and how OPCF 16 and OPCF 17 can help.
Can I put my car insurance on hold?
It is possible to put your insurance on hold. But, there is a specific way you need to go about the process of suspending it. You’ll need two Ontario Policy Change Forms to complete the process OPCF 16 (to suspend your insurance) and OPCF 17 (to reinstate it.).
People may seek to suspend their travel policy, change their driving habits, or remove a vehicle they no longer use. Remember that when you use this form, you will remove four key coverage components, including DCPD, SABS/accident benefits, uninsured motorist, and liability.
It is possible to put your car insurance on hold. But, there is a specific way you need to go about the process of suspending it. You’ll need two OPCFs to complete the process :
OPCF 16: Pausing or suspending your coverage
OPCF 16, also known as Suspension of Coverage, cancels your car insurance until it is reinstated, which is when you need OPCF 17, or reinstatement of coverage.
OPCF 17: Reinstating insurance
When the time comes to reinstate your policy, you will need OPCF 17. This form will officially reinstate your coverage.
When can insurance be put on hold?
There are a few reasons why people might want to put their insurance on hold. Right now, COVID-19 is the top reason, but there are others. Perhaps you are storing your summer car, are travelling, or want to remove a less used vehicle from your Toronto car insurance. You can call your insurer anytime to discuss changes or reduce coverage. Basic insurance is better than having none or fully cancelling.
What happens if I pause my car insurance?
There are some things to consider when you contact your insurer to discuss pausing your insurance. By suspending it, you are giving up important protection. Depending on your insurer, fees may also apply, which may be more expensive in the long run.
Here is an overview of some of the pros and cons of pausing your policy.
row of parked cars
Pros and cons of suspending insurance
There are some things to consider if you are thinking about suspending your insurance. Here is a look at the pros and cons of suspending it.
You pay less premiums while your car is not being used.
You won’t have a lapse if you pause and keep basic coverage.
The vehicle will be insured if anyone wants to drive it.
No protection against non-driving incidents such as theft, vandalism, or fire.
Fees could apply.
Your premiums could increase.
Some insurers view this as a cancellation. You could have trouble getting insured in the future because of the gap.
How does car insurance work in Canada?
How does car insurance work in Canada?
You need car insurance to drive a vehicle in Canada. It is the law. But, how it works will vary based on where you live.
How you shop for quotes and where you purchase your auto insurance from also varies. In some provinces you buy coverage through a public plan. In others you purchase it through a private insurer.
All provinces offer a variety of coverage types. Some are mandatory, some are optional. Typically, your policy will include third-party liability, accident benefits, and property damage protection. You have the option to customize your plan. You can add extra protection, endorsements, and increase coverage limits.
Car insurance also serves as a form of financial protection. Without it, you would be on the hook to pay for damage to your vehicle and medical bills after an accident. Auto insurance helps to cover some or all of these costs depending on your policy.
Here are some things Canadians should know about auto insurance:
What is a car insurance quote?
A car insurance quote is an estimated premium from an insurance company for how much you will pay for a policy. When you get an auto insurance quote it is an estimate from an insurance company for how much the premium for your policy will cost. Each company uses a custom formula to calculate your rate based on the personal information you provide. So, no two quotes will ever be the same. Therefore, it is a good idea to compare quotes from multiple companies to find the best rates.
Once you submit a quote request, insurance companies will assess your threat level. They review your information to determine the likelihood you would get into an accident and how much a claim would cost them.
Getting a car insurance quote is free. You can complete one online or over the phone. Once you receive an estimate, it is valid for a defined period set by the provider.
What information is needed to complete a car insurance quote?
car insurance quotes informtion
As part of the quoting process, you will need to answer a series of questions about yourself, diving habits, and your vehicle. Here is the information you will need to obtain a car insurance quote online or over the phone:
Basic personal information: Your name, gender, age, phone number, and email.
Mailing address and postal code: This is requested because your level of risk is association with where you live. Certain cities, neighbourhoods and postal codes have more traffic, accidents, thefts, and more expensive claims.
Driver’s licence: This is to show proof of your licence type and that it’s valid.
Vehicle make, model, year: Your vehicle type and value affect the cost to insure it. For example, a car that is a common target for theft will be more to insure. Your car model, features, and modifications will also affect the price.
Driving habits: Insurers want to know how many kilometres you drive daily and if you use your car for personal or business use. How you drive, how often, how far and where are all considerations.
Insurance and driving history: Past actions are a predictor for future trends. If you have a poor insurance or driving history, you will be a bigger threat to repeat these mistakes again. This will increase your premiums. But, if you have a clean record, you will be rewarded with lower rates.
Coverage requirements: The level of coverage you require will affect your premium amount. The more you add, the more you will pay. But you will also have more peace of mind in knowing you are covered against more threats.
Policy start date: Inform the insurer when you need the policy to start – right away, next month, when your current plan expires.
Always be honest with the information you provide to insurance companies. If you provide false or misleading information, your quoted premium will not be accurate. This is also grounds for your policy to be cancelled. Providing accurate information will get you the best quote for your auto policy.
How long do car insurance quotes last?
It depends on what provider the car insurance quote is from. For some insurance companies, quotes will be valid for 30 or 60 days. Some may be longer or shorter. Speak with your advisor for clarification on how long your car insurance quote will last. If you receive a quote you like, it is advisable to act quickly to secure the rate. Remember, that its common for premiums can change, as often as quarterly.
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What factors do insurance companies use to determine car insurance quotes?
The way auto insurance companies determine your rates is unique. Each company has its own formula they use to assess your risk level and calculate your car insurance quote. Some companies weigh certain variables more heavily than others.
There are variables you can control and others you cannot. Focus on the factors you can control to reduce how much you pay. Insurers generally use the same information when completing car insurance quotes, including the following:
What doesn’t affect car insurance rates?
There are a lot of factors that can influence your car insurance premiums. There are also a lot of things people typically believe can affect rates but actually don’t. Here are things that do not affect what you’ll pay for auto insurance :
Credit score (depends on the province)
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How much does car insurance cost in Canada?
Car insurance costs in Canada vary widely. Where you live will determine your rates. The average annual car insurance rates are the highest in British Columbia at $1,832. Rates are the lowest in Quebec at $717. The average premium for Canadian drivers is $1,244.
Data from the Insurance Bureau of Canada and Groupement des assureurs automobiles (GAA) provide an overview of the average car insurance premiums by province:
Auto insurance by Canadian province
The auto insurance systems, rules, regulations, and rates are different by province and territory. Plans are available through private insurance companies and brokers in Ontario, Alberta, and most parts of Canada. British Columbia, Manitoba and Saskatchewan drivers obtain coverage through public government run programs.
All provinces require you have at least $200,000 in third-party liability coverage (except for Nova Scotia and Quebec) and accident benefits. Some require direct compensation property damage, while others do not. Only Alberta does not require uninsured automobile protection.
The table below illustrates basic auto insurance requirements across the country:
Province or Territory Public or Private No-fault Insurance Minimum Liability Coverage Required Coverage Minimum Driving Age
Ontario Private Yes $200,000 Accident benefits, Direct property compensation damage, Uninsured automobile 16
Alberta Private No $200,000 Accident benefits 14
British Columbia Public No $200,000 Accident benefits, Uninsured automobile 16
Manitoba Public No $200,000 All perils, Personal injury, Hit and run, Inverse liability 16
New Brunswick Private Yes $200,000 Accident benefits, Direct property compensation damage, Uninsured automobile 14
Newfoundland and Labrador Private No $200,000 Uninsured automobile 16
Northwest Territories Private No $200,000 Property damage, Personal injury 17
Nova Scotia Private Yes $500,000 Accident benefits, Direct property compensation damage, Uninsured automobile 16
Nunavut Private No $200,000 Property damage, Personal injury 15
Prince Edward Island Private Yes $200,000 Accident benefits, Uninsured automobile 16
Quebec Public and Private Yes $50,000 Accident benefits, Property damage 16
Saskatchewan Public No $200,000 Property damage, Personal injury 16
Yukon Territories Private No $200,000 Property damage, Personal injury 15
Mandatory car insurance coverage
If you want to drive in Canada, you must be insured. Mandatory car insurance in Canada is different depending on where you live.
Mandatory requirements vary by province. There are four main types of required coverage. All provinces require third-party liability. But the limit differs.
For example, Nova Scotia requires $500,000, whereas Quebec only requires $50,000, with the rest of the country requiring $200,000. How accident benefits work can be different based on where you are located.
Here are the most common types of mandatory auto insurance:
Optional auto insurance coverage
Most Canadians have more than the minimum required amount of auto insurance. They do this by upping the limits on mandatory coverage and by adding optional coverages. Here are the most common types of optional auto insurance:
What are the best ways to get the cheapest car insurance?
There are many things you can do to find the cheapest car insurance rate. These tips will help you save hundreds on your premiums :
Bundle insurance policies
Instantly save money on your auto and home insurance policies. Simply combine them with the same company for discounts up to 25% or more.
Use a driving app
You’ll be rewarded for driving safely with up to 30% in discounts. How you drive will determine how much money you save. Try usage-based insurance for better savings and a lower rate on your policy.
Insure multiple vehicles
Have more than one vehicle? Combine them all with one provider and receive a multi-vehicle discount.
Use winter tires
Install winter tires and save with up to a 5% discount instantly. Drive safe and get a lower rate!
Drive an electric vehicle
You will be rewarded for driving a green vehicle. If you drive an electric or hybrid vehicle you’ll qualify for a discount.
Be a loyal customer
Loyalty pays in the form of savings. Renew with your current provider to receive a discount. The longer you stay, the less you will pay.
Retirees and seniors
Recently retired? Are you a senior driver? You will be rewarded for your experience behind the wheel. Save up to 10%. Recently retired? Are you a senior driver? You will be rewarded for your experience behind the wheel. Save up to 10%.
Complete driver training
Start off driving the right way. Complete a government approved driver training program for better auto insurance rates.
Your car insurance FAQs answered
About getting cheap car insurance quotes with ThinkInsure
ThinkInsure is an independent insurance brokerage. We are 100% Canadian and we source our car insurance quotes from a large selection of the top insurance companies in Canada.
We make it easy for you to compare the cheapest personalized car insurance quotes in Canada. Simply enter your personal, vehicle and driving information using our quoting tool and we’ll do the comparison shopping for you. You’ll instantly receive the best quotes to compare.
If you see one you like, let us know and an advisor will give you a call to go over the details and get you insured. We’ll also see if we can find you additional discounts to lower your premiums even more.
The best part is getting a car insurance quote with us is completely free! You are under no obligation to buy auto insurance coverage when you get a quote. But we’ll make it worth your while. Our customers save hundreds of dollars on average when they compare car insurance quotes with us.