20+ car insurance discounts to lower your premiums

Are you struggling with expensive car insurance premiums? You’re not alone. Car insurance rates seem to be going up every year, and the cost of keeping your car on the road has become increasingly overwhelming as a result. Lucky for you, there are a number of ways you can save money on your car insurance if you know where to look.

Find out more about the car insurance discounts you might be eligible for and learn how you can apply them to your coverage today.

How much will car insurance discounts affect my premiums?

Depending on which insurance provider you go with, you could stand to save up to 50% on your car insurance premiums if you play your cards right. The amount you can save will depend on which discounts are on offer from your provider and how many you qualify for. It will also depend on the maximum discount that your provider will let you apply to your premiums.

For example, let’s say you’re set to pay $200 per month for your car insurance without any discounts applied. Your provider says you can save 10% because you’re a student, and an additional 15% because you have a perfect driving record. That means you’ll save 25% off your premium (or $50 per month).

Just be aware that most insurance companies set a maximum amount of money you can save on your car insurance – even if you’re eligible for more. This is because your premiums need to be high enough to cover your costs if you get into an accident, while still allowing your car insurance company to turn a profit.

Which car insurance discounts can I get?

There are a number of different car insurance discounts you can apply to your coverage, based on what’s available with your provider. We’ve separated eligible discounts into four categories. Just be aware that most providers will only offer a selection of these discounts, and your savings will typically be capped at a maximum amount.

Policy discounts

• Bundling discount. Bundle your car and home insurance policies to save money on both policies.
• Multi-vehicle discount. Insure multiple vehicles with the same insurance company to get discounts across the board.
• Group rate. Get specialized discounts when you’re a member of a certain group, such as a university or professional association.
• New customer discount. Take advantage of promotional offers when you switch your car insurance over to a new provider.
• Renewal discount. Renew your policy for an additional year with the same company to save money on your premiums.
• Autopay discount. Sign up for autopay or pay your annual balance in full to get money off your car insurance.

Vehicle discounts

• Safe vehicle discount. Get discounts when you have safety features installed in your vehicle, such as airbags, anti-lock brakes or a backup camera.
• Secure vehicle discount. Lock in big savings when you have anti-theft devices installed in your vehicle, such as a car alarm, dashcam or steering wheel lock.
• New vehicle discount. Get money back when you insure a new vehicle that’s been purchased within the last three to five years.
• Private parking discount. Get a break on your premiums when you park your vehicle in a private garage or covered driveway.
• Winter tire discount. Install winter tires on your car to get a discount for reducing your risk when driving in hazardous weather conditions.
• Hybrid vehicle discount. Bring down your premiums when you protect the environment by driving an electric or hybrid vehicle.

Lifestyle discount

• Driver’s training discount. Demonstrate that you’ve taken a driver’s training program to get a discounted price on your rates.
• Student discount. Get rewarded when you attend university or college and maintain good grades during your studies.
• Away at school discount. Knock a few dollars off your rates when you keep a student who is away at school listed as a driver on your car insurance.
• Retiree discount. Enjoy a special discount if you’re retired or under the age of 65.
• Good credit discount. Get lower premiums when you prove that you have a good to excellent credit score.
• Profession-based discount. Lock in a reduction on your rates when you work in certain low-risk professions (typically outlined by your insurance agency).
• Military discount. Save money on your premiums if you can show that you have a history of working with the Canadian Armed Forces.

Driving discounts

• Safe driving discount. Download an app to track your driving habits and get rewarded for driving safely.
• Short commute discount. Save money if you have a short drive to work or you drive under a certain number of kilometres each year (e.g. 5,000 km).
• Experienced driver discount. Enjoy lower premiums when you provide your driving record and show that you’ve been licensed for 5-10 years.
• Convictions-free discount. Get money off when you prove that you follow the rules of the road with no traffic tickets or traffic violations in the past couple of years.
• Claims-free discount. Save money by demonstrating that you’ve been accident-free for three years or more.

How much can I save with each discount?

Insurance companies don’t always advertise their discounts to established customers, so it’s important to ask about what’s on offer. Discounts vary by province and insurance company. Compare the possible discounts you could qualify for and learn how much you can save:

What should I watch out for with car insurance discounts?

Discounts are designed to reward you for your loyalty, experience and safe driving habits. They’re also in place to compensate you for reducing the risk to your insurance company. Just be aware of the following pitfalls when you sign up for a discount:

• Time limits. Some discounts are time-sensitive and you may only be eligible in the first year of your policy. Check with your insurance company to make sure your discount will still apply when you renew your coverage.
• Exclusions. Exclusions can apply to discounts if you don’t meet a certain eligibility criteria when you sign up. You should find out the exact requirements you need to meet to qualify for a discount before you decide to sign on with a provider.
• Maximum discounts. Most insurance companies will put a cap on how much you can save no matter how many discounts you qualify for. Find out the max amount you can knock off of your premiums before you sign up.
• Rising premiums. Keep an eye on your overall costs to make sure they’re not going up every year. There’s no point in applying a discount if you still end up paying more than you should for your car insurance.

Are there other ways I can save money on my car insurance?

When you’ve exhausted all of the discounts you might be eligible for, you can look for further savings by taking the following actions:

• Compare multiple providers. You should try to check the rates of at least five to seven providers to ensure that you get top-notch coverage at a price you can afford.
• Look at market prices annually. You may want to apply for quotes every year to make sure you sign on with the cheapest company instead of just auto-renewing.
• Get the minimum amount of coverage. You can consider putting only third-party liability coverage on an inexpensive vehicle if you want to cut down on your premiums.
• Increase your deductible. You’ll be able to increase the amount you agree to pay for your deductible to bring the cost of your monthly premiums down.
• Choose a vehicle that’s cheap to insure. Your insurance will be cheaper if you choose a vehicle with high safety standards and an economy build (e.g. no luxury/sports cars).

Bottom line

There are a number of car insurance discounts that you can apply for if you know where to look. Your best bet is to get in touch with your insurance company directly to ask about how you can save money on your premiums. Find out more about which car insurance discounts you might be able to qualify for, and learn how you can apply to save money today.

Frequently asked questions

• How do I apply for a discount?

  For the most part, discounts will be automatically applied when you provide the appropriate documentation to prove that you qualify. Just be aware that you may not be considered for a discount until you ask about what’s available. This is why you should speak to your insurance provider directly about how you can knock money off of your premiums.

• Why have my discounts been capped?

  Your discounts have likely met the maximum amount that can be taken off of your premiums. You should ask your insurance provider what its discount caps are before you sign up for insurance. If they cap out at 25% or less, you may want to shop around to see what else is available.

• Will discounts really make that much of a difference in my premiums?

  Typically, yes. You can save a ton of money by signing up for every discount that you qualify for. That’s why it makes sense to pick a company that offers you the most eligible discounts while still giving you competitive premiums to begin with.