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Whether you’re switching providers or looking to insure a new vehicle, you’ll typically want to compare a number of insurance companies to find the best cheap car insurance. This can take some time but it’s often worth the effort since it can save you hundreds of dollars on your car insurance.
Check out some of the providers that we recommend for the cheapest car insurance in Canada, and learn what you can do to knock extra money off your rates.
Some options for cheap car insurance
While it’s really difficult to pinpoint exactly which provider offers the cheapest car insurance in Canada, we ran some tests to figure out what your coverage might look like with a run-of-the-mill vehicle and driver profile.
Sample vehicle and driver
We chose to compare quotes for third-party liability insurance on a 2013 Honda Civic clocking 15,000 km per year. We listed the driver as a 30-year-old female with 10 years of driving experience and a perfect driving record.
It’s important to note that the prices outlined in our example below are only a small representation of what’s available. You could end up paying very different amounts based on personal factors such as what type of car you drive, what your claims history looks like and how long you’ve been driving.
While we didn’t compare excess coverage in this example, we did notice that adding comprehensive/collision insurance to your policy will typically cost an extra $50-$70 per month on average. You can keep that in mind as you peruse the results of our comparison in the table below.
Sample results based on our driver example listed above
*Quotes as of 28 July 2020 (subject to change based on personal details).
What’s the difference between liability and collision/comprehensive insurance?
If you want the cheapest car insurance available, you’ll usually only want to insure your vehicle with third-party liability. That said, you may want to add on collision and comprehensive if you have a new or expensive vehicle, just to be safe.
Third-party liability. This is the most basic form of coverage. It pays for the medical bills of anyone involved in an accident and covers damage to other vehicles involved in a collision that’s deemed to be your fault.
Collision. Pays for maintenance and repairs to your vehicle following a collision or pays to replace it if it’s certified as a write-off.
Comprehensive. Protects your vehicle in the case of damage due to falling objects, vandalism, fire, theft, natural disasters or civil disobedience.
Cheap car insurance rates by province
The rates you’ll pay for your car insurance will vary by province. Some provinces offer private insurance, while others such as BC, Manitoba and Saskatchewan offer mandatory public insurance. Quebec also has its own unique regulations to govern what kind of car insurance you can get.
Factors that impact your car insurance rates
It can be very difficult to pinpoint which insurance companies offer the absolute cheapest car insurance rates since the amount you’ll pay will depend on a number of personal factors. These include but aren’t limited to:
Gender. You’ll usually have to pay a slightly higher premium for insurance if you’re a man (especially if you’re under the age of 25). This is because men are often considered riskier drivers than women when they first start driving.
Age. You may end up paying more for your car insurance if you’re under the age of 25 or don’t have a ton of driving experience. This is because you’re seen as more likely to get into an accident if you’re not as familiar with driving.
Location. You’ll typically pay more if you live in an urban area rather than a rural part of Canada. This is because you’re more likely to get into an accident at a busy intersection or on a multi-lane highway than you are while driving along back roads.
Type of vehicle. Your premiums will also depend on the type of vehicle you drive. You’ll usually pay more for new or expensive cars or vehicles with low safety ratings. You may pay less if you have a hybrid car or a low-cost economy vehicle.
Driving record. You’ll typically pay more for your insurance if you’ve been in an at-fault accident. Your overall cost will often depend on the severity of the accident, as well as how many claims you’ve filed over the years.
Driving activity. You’ll pay a higher premium for your insurance if you drive regularly, or put in a significant amount of kilometres each year. You can get cheaper insurance if you only use your vehicle a few times a week for mostly recreational purposes.
Type of coverage. Your premiums will be lower if you only get third-party liability coverage. You’ll have to pay an additional premium to add on extra coverage like collision or comprehensive.
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What can I do to get the cheapest car insurance in Canada?
There are a few ways that you can lock in the cheapest car insurance in Canada. Try out the following strategies to save money on your next policy.
Shop around to compare prices. You should look at your rates every couple of years to make sure you’re getting the best prices, and compare quotes with at least 5-7 providers to lock in the best deal.
Remove coverage you don’t need. Consider getting only third-party liability insurance on older or less expensive vehicles, and avoid adding extra coverage wherever possible.
Raise your deductible. You’ll usually get a lower monthly premium if you pay a higher deductible, which could save you money in the long run.
Nominate your drivers. You should be able to lower your premiums by insuring your policy in the name of the oldest or most experienced driver in your household. You can then add on higher-risk drivers as supplementary drivers.
Reduce your mileage. You may qualify for a low mileage discount if you use your vehicle recreationally and don’t drive it to and from work every day.
Check for discounts. You can look for a provider that offers a number of discounts that you may be eligible for to save money on your monthly premiums.
What car insurance discounts might I be eligible for?
Depending on which car insurance provider you go with, you could be eligible to get a number of discounts on your car insurance. You can check for the following discounts with your provider.
Accident-free discount. You may get a discounted rate if you haven’t been in an accident or filed a claim in a specific time period (typically 3-5 years).
Membership discount. You could qualify to save money if you work with a certain company or hold membership with a school, team, club or other association.
Anti-theft discount. It’s possible to save money if you have alarms or other security systems installed on your vehicle.
Bundled policies discount. You’ll likely get a rebate if you decide to bundle your car insurance with your home or life insurance.
Hybrid vehicle discount. You could save a chunk of cash if you choose to drive a hybrid or eco-friendly vehicle.
Senior or student discount. You may be entitled to a discount if you meet a certain age demographic.
Multi-car discount. It’s likely that you’ll save money across the board if you insure more than one vehicle with the same insurance company.
Safe driving discount. Some insurers will let you download an app to track your driving habits and you may be eligible to get discounts for driving safely.
Low mileage discount. You could save a lot of money if you only use your vehicle once in a while, and can keep it below a certain number of kilometres each month.
What should I know before I apply?
Eligibility requirements
To apply for car insurance anywhere in Canada, you’ll usually need to meet the following criteria:
Be at least 16 years old
Have a valid Canadian driver’s licence
Own the vehicle you wish to insure
You may also need to fulfill additional criteria based on which province you live in.
How to apply
If you want to apply for auto insurance, you just need to follow these simple steps.
Visit the website of the car insurance company you’re interested in to submit an application for a quote online.
Provide the necessary documentation – such as a valid driver’s licence and proof of purchase for your vehicle.
Get verified and work with your provider to negotiate the terms of your car insurance if you meet the eligibility requirements.
Bottom line
You should try to compare at least 5-7 car insurance providers if you want to find the cheapest rates on your car insurance. You can start by checking out some of the rates on offer with the companies we’ve listed at the top of the page. You might also want to look for a provider that offers discounts that you think you’ll be eligible for.
Frequently asked questions about cheap car insurance
You should definitely consider third-party liability insurance if you want the cheapest car insurance. Just be aware that this won’t cover your vehicle for any damage so it’s most suitable for older or less expensive cars.
Yes and no. You won’t be able to compare your mandatory third-party liability coverage or other basic insurance in provinces like BC, Manitoba or Saskatchewan. That said, you can compare private insurance quotes for comprehensive and collision insurance in these provinces.
There’s a number of ways you might be able to qualify for a discount. For example, you could qualify to save money for parking your vehicle in off-street parking or for having winter tires or a car alarm. You might also be able to qualify for discounts as a student or a senior. You’ll need to check with the provider you’re interested in to find out what discounts are available.
Claire Horwood is a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee.
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