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How to lower car insurance costs

Find out the 9 best ways to save on your car insurance.

No one wants to pay more for car insurance than they need to. Compare the best and easiest ways to pay less on your monthly car insurance bill right now and the next time you shop around.

9 ways to get cheap car insurance

Compare the top 9 ways to save on your car insurance and potentially lower your monthly car insurance bill.

1. Stop paying for add-ons you don’t need

Check your policy for optional extras you’re paying for that you haven’t used and don’t need. Some extras that you might be paying for but may not need include roadside assistance, rental car coverage and coverage for personal items.

How much car insurance do I need?

2. Reassess coverage as your car gets older

Find your car’s value online on sites like Canadian Black Book, Auto Trader Canada and Kijiji Autos. If your car value has dropped and is close to your annual premiums, it’s time to reevaluate your coverage maximums and consider dropping comprehensive and collision coverage.

3. Increase your deductible

Consider raising your deductible, which is the amount you have to pay when making a claim before you get reimbursed. A higher deductible means lower premiums. Just make sure you can afford to pay that higher deductible out of pocket if you end up making a claim.

4. Choose your drivers carefully

You should see lower premiums by insuring your policy in the oldest or safest driver’s name and simply listing additional drivers with higher risk, as long as everyone driving the car is listed.

5. Park in a safe location

Cars kept in garages are cheaper to insure than those parked on the street. It might be worth putting your car in a garage or carport or renting a garage space from someone in your neighborhood, not only for reduced premiums but also to reduce the risk of making a car theft claim.

6. Reduce your mileage

You could get a discount if you drive less or by using a pay-as-you-go car insurance policy. If you’re close to the low mileage threshold but not quite there yet, see if you could reduce or combine your trips or carpool to lower your mileage.

7. Ask for discounts

Make sure you’re getting rewarded where you can, and check for any new car insurance discounts you could qualify for, like a claim-free or loyalty discount. Check for any safety or anti-theft features your car has to save even more.

8. Don’t write off local carriers

The best car insurer for you might not be one of the big brands. A regional or local car insurance company may have better rates than a national one. But watch out for limited coverage areas or agent-only support.

9. Shop around to compare prices.

Consider switching car insurance providers instead of just renewing, especially if you’ve been through big life changes like getting married or moving. You can also use comparison quotes to ask for a price match from your current insurer. Keep reading to compare car insurance providers in the table below.

What are the easiest ways to get a discount?

  • Get a quote online.
  • Sign up for a policy in advance.
  • Set up autopay for premium payments.
  • Signup for paperless notifications.
  • Take a defensive driver class.
  • Pay your policy in full, upfront.

How else can I save on car insurance?

A few of the biggest opportunities for savings aren’t possible in the short term, but they could help you get cheaper car insurance the next time you shop around.

  1. Improved credit score. If you live in a province that allows insurers to factor in your credit score when setting your rates, and your credit score has improved since you first applied, you could save you a lot by allowing a credit check.
  2. Drive safely. It’s easier said than done, but if you keep your claims history and tickets to a minimum, you’ll save a bundle over the long run.
  3. Wait for accidents and tickets to drop off your record. It’s a good time to shop after claims or tickets are no longer counted against you, which is typically after 3 to 5 years after you got the ticket.
  4. Build a deductible savings. If you have a $500 deductible because you can’t afford a $2,000 deductible now, save up that extra $1,500 in a high-interest savings account. When you hit savings your goal, switch to the higher deductible.

How can my next car help me save on car insurance?

The next time you’re shopping for a new or new-to-you car, you’ll find lower insurance rates on safer cars or cars that are cheap to insure. When you go pick your trim and upgrades, consider installing antitheft or security features to qualify for discounts to help lower your premiums.

Some of the cheapest car models to insure include:

Get cheap car insurance with these providers

Compare features of Canadian car insurance providers in the table, and once you’ve decided click the “Go to site” button to apply.

Name Product Accident Forgiveness Min. Liability Coverage Discounts Available Online Claims Available Provinces
Surex Auto Insurance
Up to 25%
Alberta, Northwest Territories, Nova Scotia, Nunavut, Ontario, Yukon
Submit one application and receive quotes from 10+ insurers. Save up to 25% on your car insurance, plus get access to an insurance advisor.

Who it might be good for: Drivers looking to use an insurance broker to compare multiple pricing and coverage options.
Intact Car Insurance
Up to 25%
Alberta, Northwest Territories, Nova Scotia, Nunavut, Ontario, Yukon
Get car insurance with Intact and enjoy a quick turnaround on any lodged claims. Get a free quote through Surex.

Who it might be good for: Drivers looking to get rewarded for good driving behaviour.
Aviva Car Insurance
Up to 25%
Alberta, Northwest Territories, Nova Scotia, Nunavut, Ontario, Yukon
Aviva car insurance offers customizable policies, discounts and optional insurance coverage add-ons. Get a free quote through Surex.

Who it might be good for: Drivers looking to customize their auto policy.
Travelers Car Insurance
Up to 25%
Alberta, Northwest Territories, Nova Scotia, Nunavut, Ontario, Yukon
Travelers auto insurance offers a selection of coverage options for just about any type of vehicle. Get a free quote through Surex.

Who it might be good for: Drivers looking to get car, motorcycle, classic car, motorhome or recreational vehicle coverage.

Compare up to 4 providers

Bottom line

You could save hundreds on your car insurance right now with a little comparison shopping. And over time, it’s possible to lower your rates even more. Compare car insurance policies today to find out how much you could save.

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