Ontario drivers pay some of the highest car insurance premiums in Canada, but there are numerous discounts available that can significantly reduce your costs. Knowing which discounts exist and how to qualify for them is essential for getting the best rate on your auto insurance.
This comprehensive guide covers all the car insurance discounts available to Ontario drivers, from government-mandated discounts to insurer-specific savings programs.
Government-Mandated Discounts
Winter Tire Discount (5%)
Since 2016, Ontario law requires all auto insurers to offer a discount to drivers who use winter tires. This mandatory discount is typically 5% off your premium. To qualify:
- Install winter tires on all four wheels
- Use tires branded with the mountain/snowflake symbol or M+S rating
- Notify your insurer that you have winter tires installed
Winter tires must be installed during the winter months (typically December through March) to qualify for the discount.
Vehicle-Related Discounts
Multi-Vehicle Discount (5-15%)
Insuring more than one vehicle on the same policy typically results in savings of 5-15% per vehicle. This discount applies when:
- Multiple vehicles are owned by household members
- All vehicles are insured with the same company
- The vehicles are registered to the same address
Anti-Theft Device Discount (2-5%)
Vehicles equipped with approved anti-theft devices may qualify for premium reductions. Qualifying devices include:
- Factory-installed immobilizers
- Aftermarket alarm systems
- GPS tracking devices
- Steering wheel locks
New Vehicle Discount
Some insurers offer discounts for vehicles that are less than 2-3 years old, recognizing that newer vehicles often have better safety features and are less likely to have mechanical failures.
Policy Bundling Discounts
Multi-Policy/Bundling Discount (5-15%)
Combining your auto insurance with other policies from the same insurer can result in significant savings:
- Home + Auto: Typically 5-15% discount on both policies
- Tenant/Condo + Auto: Similar savings available for renters
- Multiple Products: Some insurers offer additional discounts for three or more policies
Driving Record Discounts
Claims-Free Discount (5-25%)
Maintaining a clean claims history rewards you with progressively better rates:
- After 1 year claims-free: Initial discount
- After 3-5 years claims-free: Enhanced discount
- After 6+ years claims-free: Maximum discount level
Some insurers offer claims forgiveness programs that protect your discount even after a first at-fault accident.
Conviction-Free Discount
Drivers with no traffic convictions or moving violations over a specified period (typically 3-6 years) may qualify for additional savings.
Driver-Specific Discounts
Good Student Discount (5-15%)
Full-time students who maintain strong academic standing can qualify for reduced rates. Requirements typically include:
- Full-time enrollment in high school, college, or university
- Maintaining a B average (70% or higher) or being on the Dean's List
- Age requirement (usually under 25 years old)
- Proof of grades (report card or transcript)
Mature Driver Discount
Drivers over a certain age (typically 50-55+) who complete an approved mature driver training course may qualify for discounts. These courses refresh driving skills and demonstrate commitment to safe driving.
Driver Training Discount
New drivers who complete an MTO-approved Beginner Driver Education (BDE) course can receive premium reductions. This discount recognizes the improved skills and reduced risk associated with formal driver training.
Usage and Payment Discounts
Usage-Based Insurance (UBI) Discount (Up to 25%)
Telematics programs monitor your driving habits and reward safe behaviour. You can earn discounts based on:
- Safe acceleration and braking patterns
- Avoiding hard cornering
- Driving during lower-risk times
- Total kilometers driven
Most programs guarantee no premium increase and offer potential savings of 5-25% depending on your driving habits.
Low Mileage Discount
If you drive less than the average (typically under 10,000-12,000 km per year), you may qualify for reduced rates. Less time on the road means lower risk of accidents.
Payment Method Discounts
- Annual Payment: Paying your full premium upfront (annually) often results in savings compared to monthly payments
- Pre-Authorized Payment: Setting up automatic payments may qualify you for additional discounts
- Electronic/Paperless: Opting for digital communications and billing can provide small savings
Group and Affinity Discounts
Professional/Alumni Association Discounts
Many insurers offer group rates to members of:
- Professional associations (engineers, teachers, nurses, etc.)
- University alumni associations
- Employer groups
- Credit unions and professional organizations
These discounts typically range from 5-15% and can be combined with other discounts.
Loyalty Discount
Staying with the same insurer for multiple years often results in loyalty rewards. The longer you stay, the better the discount may become.
How to Maximize Your Discounts
Tips for Getting Every Discount You Qualify For
- Ask Your Insurer: Not all discounts are automatically applied. Ask specifically about every discount available.
- Provide Documentation: Be prepared to show proof of eligibility (student transcripts, winter tire receipts, etc.).
- Review Annually: Your circumstances change. Review your policy each year to add new discounts you may now qualify for.
- Compare Insurers: Different insurers offer different discounts. Compare quotes to see which combination gives you the best rate.
- Stack Discounts: Most discounts can be combined. The more you qualify for, the more you save.
Get Your Discounted Rate
The discounts you qualify for depend on your specific situation, including your driving history, the vehicle you drive, and your personal circumstances. The best way to find out exactly how much you can save is to get a personalized quote.
Ready to see how much you could save? Get your free Ontario car insurance quote and see all the discounts you qualify for.