How to Get Discounts on Car Insurance in Canada: 10 Tips to Save Money
Car insurance is a necessary expense for drivers in Canada, but it doesn’t have to break the bank. With premiums varying widely based on factors like location, driving history, and vehicle type, there are plenty of opportunities to save money if you know where to look. In this article, we’ll explore ten practical tips to help you secure discounts on car insurance in Canada, ensuring you get the best possible rate without sacrificing coverage.
1. Compare Quotes from Multiple Providers
One of the simplest yet most effective ways to save on car insurance is by shopping around. Insurance rates can vary significantly between providers, even for the same driver profile. Use online comparison tools or consult with brokers to gather quotes from multiple companies. This allows you to identify the most competitive offers and negotiate better terms.
Pro Tip: Don’t settle for the first quote you receive. Take the time to compare at least three to five options.
2. Bundle Your Policies
Many insurers offer discounts when you bundle multiple policies, such as home insurance and auto insurance, under the same provider. Known as a “multi-policy discount,” this strategy not only simplifies your billing process but also reduces your overall premium costs.
Example: If you already have renters’ or homeowners’ insurance, ask your provider about bundling options for additional savings.
3. Maintain a Clean Driving Record
Your driving history plays a significant role in determining your insurance premium. Drivers with clean records—free of accidents, tickets, or claims—are considered lower risk and typically qualify for better rates. Safe driving habits can lead to substantial savings over time.
Bonus: Some insurers offer “accident forgiveness” programs that prevent your rates from increasing after your first at-fault accident.
4. Take Advantage of Loyalty Programs
Sticking with the same insurer for an extended period can sometimes pay off. Many companies reward long-term customers with loyalty discounts or reduced renewal rates. However, be cautious—if your current provider’s rates seem unusually high, it might still be worth comparing other options.
Note: Always balance loyalty rewards against potential savings from switching providers.
5. Opt for Higher Deductibles
Choosing a higher deductible (the amount you pay out-of-pocket before your insurance kicks in) can lower your monthly premiums. While this requires having some savings set aside for emergencies, it’s a smart way to reduce ongoing costs if you rarely file claims.
Caution: Ensure the deductible amount is manageable in case of an accident.
6. Enroll in Usage-Based Insurance Programs
Usage-based insurance (UBI) programs track your driving behavior through telematics devices or smartphone apps. By demonstrating safe driving habits—such as avoiding hard braking, speeding, and late-night driving—you may qualify for personalized discounts.
Popular Programs: Examples include Intact Insurance’s “SmartDrive” and Desjardins’ “Ajusto.”
7. Install Anti-Theft Devices
Equipping your vehicle with anti-theft devices can make it less attractive to thieves, thereby reducing your risk profile. Insurers often offer discounts for vehicles equipped with features like alarms, immobilizers, GPS tracking systems, or steering wheel locks.
Tip: Check with your insurer to confirm which devices qualify for discounts.
8. Drive Less Frequently
If you use your car sparingly, consider opting for pay-per-mile or low-mileage insurance plans. These programs calculate your premium based on how much you drive, making them ideal for occasional drivers or those who primarily rely on public transportation.
Example: Companies like Onlia offer usage-based pricing tailored to infrequent drivers.
9. Complete Defensive Driving Courses
Completing an accredited defensive driving course can improve your skills behind the wheel while earning you a discount on your insurance. These courses teach techniques to avoid accidents and handle challenging road conditions safely.
Eligibility: Some insurers require proof of completion, so keep your certification handy.
10. Review and Adjust Coverage Regularly
Your insurance needs may change over time, especially if you’ve paid off your car loan, moved to a new area, or retired. Periodically reviewing your policy ensures you’re not paying for unnecessary coverage. For example:
- Drop collision/comprehensive coverage for older vehicles.
- Update your address if you’ve relocated to a safer neighborhood.
- Adjust liability limits based on your current financial situation.
Reminder: Always maintain adequate coverage to protect yourself and others on the road.
Additional Ways to Save
While the above tips focus on direct discounts, here are a few more strategies to maximize your savings:
- Group Discounts: Some employers, alumni associations, or professional organizations partner with insurers to offer group discounts.
- Winter Tire Discounts: Installing winter tires can qualify you for a discount in provinces with harsh winters.
- Good Student Discounts: Young drivers with strong academic performance may be eligible for reduced rates.
- Seniors’ Discounts: Retirees who drive fewer miles or complete refresher courses may receive special pricing.
