15 ways to get cheap car insurance in Canada

With files from Tyler Wade

This article was originally published on September 4, 2019 and was updated on August 29, 2025. 

Not all car insurance pricing is the same. Quotes can vary depending on several factors, including your location, coverage, driving history, insurance provider, car model and even your age. That’s why it’s essential to research your options to find the right coverage at the best price. 

With the cost of auto insurance continuing to rise due to inflation, auto theft, insurance fraud and other market factors, it’s no surprise that Canadians are looking for strategies to lower their premiums. 

To help you out, we’ve compiled a list of 15 ways to get cheap car insurance in Canada, including tips you can use now and in the future to secure affordable insurance. Whether you’re mid-policy or up for renewal, implementing these strategies can help ease the strain on your wallet. 

What is the average price of car insurance in Canada?

Before we get into cost-saving tips, let’s explore how insurance premiums vary across the country. Here are the average insurance premiums drivers pay, ranked from most to least expensive across Canada (based on data from Insurance Business Magazine). 

Note: these quotes are estimates only, and final pricing will vary based on the specific requirements of each driver.

 

Why should you care about the average premiums across provinces?

Aside from learning whether or not you’re paying a fair rate based on the provincial average, it’s important to understand why prices vary across Canada. 

Some provinces use a public insurance model, where the government provides coverage. This includes British Columbia, Saskatchewan, and Manitoba. According to the table above, these provinces are among the most expensive in the country, as there are fewer competitive options for consumers (i.e. no comparison shopping). 

All other provinces operate on a private insurance model, where drivers can choose which provider they want to purchase coverage from. This system offers consumers more options to find lower rates, as they can shop around and compare prices. 

Meanwhile, auto insurance in Quebec is the cheapest in Canada because it operates on a unique dual model, where drivers buy accident benefits coverage from the government at a subsidized cost, and all other forms of coverage from private insurers.

So, if you're looking for cheap car insurance in Canada, you’ll find it in Quebec or Atlantic Canada. Still, even a postal code change within your city and province can impact rating changes due to many factors beyond your control, like theft, population density, and proximity to the nearest collision-riddled intersection.

Now that you understand provincial pricing, let’s look at strategies to find affordable car insurance.  

How to get cheap car insurance in Canada: 15 strategies to use today

We've summarized our list of the top ways you could save and get cheap car insurance in Canada:

1. Choose the right car
2. Adjust your policy to reflect your needs
3. Drop optional coverages
4. Track your driving
5. Compare insurance quotes
6. Keep a good driving record
7. Ask for discounts
8. Bundle your policies
9. Make your payments on time
10. Install winter tires
11. Make annual payments
12. Increase your deductible
13. Take an accredited driving course
14. Install anti-theft devices
15. Drive less

 

1. Choose the right car to keep your insurance costs down

If you want cheap auto insurance, you should keep insurance costs in mind when you’re thinking about buying a car and even do some insurance price research before driving that car off the lot.

Insurers consider a range of factors when assessing how much to charge for coverage for any driver and car combination. For instance, car models frequently targeted by thieves may cost you extra to insure, as will rarer cars and fancy sports cars. However, a minivan is often one way to get super cheap insurance because of its association with families carrying precious cargo. The same applies to most used cars, as the price to repair or replace the vehicle is considerably lower than that of a brand-new car. 

Also read: The 10 cheapest used cars to insure in Canada

You can use the Insurance Bureau of Canada’s CLEAR table to discover which vehicles have low claims against them, translating to lower auto insurance rates. However, if you're not an Excel wizard, you can use our auto insurance tool to compare car insurance prices of various car makes and models.

2. Adjust your policy to reflect your needs

Different drivers have different insurance needs, so find an insurance plan that caters specifically to you. Across Canada, there are four mandatory coverages, with options to opt for the minimum: 

• Third-party liability covers you if you damage someone else’s property or injure them.
• Accident benefits cover you if you’re hurt following an accident.
• Uninsured auto covers you if an uninsured motorist hits you.
• Direct compensation property damage - this form of coverage is available in most provinces and is in place so you only ever deal with your insurer, regardless of fault, when settling a claim. Your insurance company fights to receive compensation from the other insurer, without your involvement.

The minimum third-party liability (TPL) is $200,000 in most provinces, but is generally set at a recommended default of $1 million. If you want really cheap car insurance in Canada, you could opt for the minimum and take on more of a risk. However, we do not recommend it. Many TPL claims go easily over $1 million, and you'll be paying that difference out of pocket.

Accident benefits pay for your recovery after an accident for physiotherapy and medical expenses. It also pays for loss of income and funeral expenses. You can upgrade this portion to receive more income replacement (it's not much, depending on the province). Still, if you have quality health benefits at work (including long-term and short-term disability) and life insurance, you can reduce your accident benefits to the minimum coverage.

3. Drop the optional coverages if you no longer need them

If you have an old car, consider forgoing collision coverage. Many drivers skip this form of coverage if their old vehicle is no longer worth repairing because it doesn't hold much value, and in turn get a break on their premiums. Think of it this way: if you have to pay a $1,000 deductible to repair a car that's only worth $500, you can drop collision. Instead, put the savings into a new car fund.

You can also forgo comprehensive coverage to get cheaper car insurance. Comprehensive protects your car when it's not moving, for example, from bad weather, floods, or if a tree falls on top of it.

4. Track your driving

Consider usage-based insurance (UBI), especially if you're a student or a young driver. Young males typically pay much more than the average for car insurance due to stereotyping by insurance companies.

UBI tracks kilometres driven and other factors, such as how aggressively you brake and accelerate, speeding, and how you handle turns. With this system, which you can monitor yourself on your phone, you can earn discounts for driving well.

Many auto insurance companies, such as Intact, CAA, or Onlia, offer UBI, either in an in-app form or a device installed in your engine, to monitor your performance beyond generic rating factors. 

5. Compare insurance quotes 

When shopping for car insurance, do not take anyone's word that they're the best deal for you; you need to find that out for yourself. Do your research, and don't assume the most prominent company is the best as you not be familiar with some excellent insurance companies.

To find your lowest rate, compare quotes online. You can use our auto insurance quote tool to discover what different insurers will charge you. Alternatively, consider visiting an insurance broker to help you find the best fit for your needs.

Make it an annual tradition, each time you’re up for renewal, because companies change pricing all the time and you may be eligible for a lower rate (either with the same provider or a new one). 

6. Keep a good driving record

At-fault collisions and driving convictions make your insurance rates go way up – and they stay on your insurance record for a minimum of three years. 

To avoid a spike in your premiums, drive safely and obey the road rules; don’t speed, drive impaired or drive carelessly. Drivers with the best records over long periods pay the lowest rates.

Also read: What is the total cost of getting a traffic ticket in Ontario?

7. Ask about ways to get discounts on car insurance

If you’re still wondering how to save money on car insurance, call your insurance provider or broker, as many insurers may offer discounts. For instance, are you a member of any professional organizations or affiliation groups (e.g. a union or an alumni group)? Ask if they have discount relationships with any insurers.

8. Bundle your policies

You may get discounts if you bundle insurance plans together, such as by having your auto and home insurance with the same carrier. If you drive multiple cars, you can also get a multi-line discount by insuring them all with the same company.

9. Make your payments on time, all the time

Don’t miss a payment. For one, it can lead to NSF fees and overdraft charges. Secondly, your insurer will have to chase you for payment, which can result in increased rates in the future. A missed payment can hurt your credit score, too.

10. Install winter tires

Winter tires are not mandatory in most of Canada, but they offer advantages. In Quebec, you are required to use winter tires by law, or you’ll face penalties and fines. For the rest of Canada, you can get a 3-5% discount on your monthly insurance premiums by installing winter tires. 

While that discount won't cover the cost of your tires, you’ll be safer driving in the snow and avoid skidding, which helps prevent expensive claims and saves you money. 

11. Pay premiums annually, not monthly

If you pay your premiums up front for the year or half-year, you may get a small cut of the savings from administrative fees compared to paying monthly. When it comes to securing cheap auto insurance, even a few dollars can make a big difference.

12. Consider increasing your deductible

The deductible is the initial amount you pay for any claim before the insurance company will cover the remaining amount. Increasing your deductibles can be a way to lower your premiums. However, that also means you'll pay more out of pocket as a deductible payment if or when you crash your car. So, make sure you can afford to do that before taking on more risk. 

13. Take an accredited driving course

Especially useful for new drivers, an accredited driving course will not only make you a better and safer driver but also result in a discount from many insurance companies.

14. Install anti-theft devices

Many new cars already have immobilizers installed. But any anti-theft device for a car, from steering wheel locking devices to GPS tracking devices (e.g. Lojack), may earn you a car insurance discount. If not, it prevents a comprehensive car insurance claim for theft, which could result in higher rates.

15. Limit your driving

While it may sound counterintuitive, the less you’re on the road, the more money in your pocket. This is because there is a lower potential for your vehicle to be involved in an accident, which in turn lowers your risk when insurers calculate your premiums. 

The bottom line

To get cheap car insurance in Canada, follow our 15 strategies, including choosing a car that’s affordable to insure, dropping unnecessary coverage, and bundling your policies. Our list is easy to follow and can result in immediate savings. For the quickest and most effective way to lower your premiums, shop the market and compare auto insurance quotes online.  

Also read

• The best car insurance companies in Canada
• The 10 cheapest used cars to insure in Canada
• What is the total cost of ownership for a car?