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20+ car insurance discounts to lower your premiums

Find out which car insurance discounts you can apply to your coverage to save money on your monthly premiums. 

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car insurance

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:

Discount

Average savings

You may qualify for this discount by:

Bundling

5% to 10%

Bundling various policies such as car, home and life insurance with the same provider.

Multi-vehicle

Up to 25%

Insuring more than one vehicle on a single car insurance policy with the same company.

Group

Up to 25%

Being a member of an eligible group, such as a university or professional association.

New customer

5% – 10%

Switching your policy to a new provider.

Renewal

Up to 20%

Remaining with the same insurer for many years and renewing your policy with them.

Autopay or full payment

Varies

Organizing autopay or paying for your full year of car insurance all at once.

Safe vehicle

Up to 20%

Owning a vehicle with factory-installed safety features such as airbags, anti-lock brakes or a dashcam.

Secure vehicle

Up to 20%

Owning a vehicle with factory-installed security features such as alarms, tracking systems and kill-switches.

New vehicle

5% to 10%

Owning a vehicle that’s under three years’ old.

Private parking

5% to 10%

Parking your vehicle in a private garage or driveway where it’s less likely to get hit.

Winter tires

5% to 10%

Installing winter tires on your vehicle to lower your risk of collision in hazardous conditions.

Hybrid vehicle

5% to 10%

Driving an eco-friendly or hybrid vehicle.

Driver’s training

5% to 10%

Showing proof that you’ve taken a driver’s safety course – usually reserved for drivers under the age of 21.

Student

5% to 10%

Being enrolled at a university or college and keeping your grades up.

Away at school

Up to 20%

Showing proof that a student driver on your policy isn’t driving the vehicle when they’re away at school.

Retiree

5% to 25%

Being over the age of 60.

Good credit

Up to 25%

Demonstrating that you have a credit score in the good-to-excellent range.

Profession-based

Varies

Working in a job that’s deemed low-risk.

Military

5% to 10%

Being a member of the Canadian Armed Forces.

Safe driving

5% to 20%

Installing an app that tracks your driving habits to give you discounts for safe driving.

Short commute

5% to 20%

Keeping your mileage low or showing that your workplace is a short distance from your home.

Experienced driver

5% to 20%

Demonstrating that you have at least five years’ driving experience with no collisions.

Convictions-free

5% to 10%

Showing that you haven’t had a ticket for speeding or another traffic violation in several years.

Claims-free

5% to 10%

Proving that you’ve had no at-fault accidents during the past three to five years.

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.

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