Car insurance is a significant expense for Ontario drivers. The good news is there are many legitimate ways to reduce your premiums without sacrificing coverage. Here are 15 proven strategies to help you lower your car insurance costs.
1. Install Winter Tires
Ontario insurers are required by law to offer a discount for winter tires. This discount is typically around 5% off your premium. Winter tires must meet Transport Canada standards and be installed during the winter months (typically November through April).
2. Bundle Your Policies
Many insurers offer multi-policy discounts when you combine your auto insurance with home, tenant, or condo insurance. Bundling can save you 5-15% on your premiums.
3. Increase Your Deductible
Raising your deductible from $500 to $1,000 or higher can lower your premium. However, make sure you can afford to pay the higher deductible if you need to make a claim.
4. Maintain a Clean Driving Record
Your driving history significantly impacts your insurance rates. Avoiding accidents and traffic violations keeps your premiums low. Most insurers look at the past 6 years of your driving record.
5. Take a Driver Training Course
Completing an approved driver training course can qualify you for discounts. New drivers especially benefit from courses approved by the Ontario Ministry of Transportation.
6. Consider Usage-Based Insurance (Telematics)
Many insurers offer programs that track your driving habits through an app or device. Safe drivers who avoid hard braking, speeding, and late-night driving can earn discounts of up to 25%.
7. Shop Around and Compare Quotes
Insurance rates vary significantly between companies. Getting quotes from multiple insurers can reveal substantial savings. Experts recommend comparing at least 3-5 quotes before choosing a policy.
8. Ask About All Available Discounts
Insurers offer various discounts that you may qualify for: multi-vehicle discounts, loyalty discounts, professional association discounts, alumni discounts, and more. Always ask your insurer for a complete list of available discounts.
9. Choose Your Vehicle Wisely
The type of vehicle you drive affects your insurance costs. Vehicles with good safety ratings, lower theft rates, and cheaper repair costs typically have lower insurance premiums.
10. Pay Annually Instead of Monthly
If you can afford it, paying your premium annually often costs less than monthly payments, as insurers may charge administrative fees for monthly billing.
11. Review Your Coverage Annually
As your vehicle ages, you may want to reconsider comprehensive and collision coverage. For older vehicles, the coverage cost may exceed the vehicle's value.
12. Park in a Garage or Secure Location
Where you park your car affects your rates. Parking in a garage or secure lot can lower your premiums compared to street parking.
13. Maintain Good Credit
While Ontario limits how insurers can use credit information, maintaining good financial habits can still positively impact your overall insurance profile.
14. Drive Less
Lower annual mileage can qualify you for reduced rates. If you work from home or use public transit regularly, let your insurer know your reduced driving habits.
15. Consider Group Insurance Plans
Some employers, professional associations, and alumni groups offer group insurance plans with discounted rates. Check if you qualify for any group plans through your affiliations.
Start Saving Today
Implementing even a few of these strategies can lead to meaningful savings on your car insurance. The key is to be proactive and review your coverage regularly.
Ready to see how much you could save? Get a free car insurance quote and compare rates from multiple Ontario insurers in minutes.