Skip to main content
Ratehub logo
Ratehub logo

How to save on car insurance

The best way to save on car insurance is to compare quotes. It only takes a few minutes to see what level of savings you can uncover.

Looking for ways to save on car insurance?

Car insurance rates vary from province-to-province, city-to-city, right down to your own neighbourhood. There are some costs you can’t control, such as the base rates in the public insurance systems in BC, Manitoba and Saskatchewan. It's also difficult to change your age, gender, the car you currently drive, or where you live - but they're all factors that influence any car insurance quote. You can, however, still find a number of ways to save money on your auto insurance rates. 


A few things we're proud of

  • 1,200,000

    monthly users

  • 9 years


  • Over 1M

    better choices made

  • Trusted partner

    to Canada’s top financial institutions

How to save on car insurance

Below is a list of things you can do to save on car insurance today, some are easier than others.

  1. Take a reputable driver training course

    Passing a driver training course won’t affect your premiums in all provinces, but it’s something that is recognized in some and can result in a discount being taken off your premium. This tip is especially helpful for teens and young drivers.

  2. Build a good driving record free of accidents and convictions

    Yes, accidents happen, but you should always drive carefully and obey the rules of the road. That includes wearing your seat belt, not driving impaired by drugs or alcohol, not speeding and not using your cell phone. The longer you keep your driving record clean, the better. For example, in BC, you can get a discount for every year you are claims-free, up to 43% off!

  3. Figure out how much coverage you need – and don’t pay for anything you don’t

    While it makes sense for someone with a newer car to have collision and/or comprehensive insurance, if your vehicle isn't worth much, it may not make sense for you. Unless collision insurance is a condition of your loan or lease, it may be worth dropping the excess coverage. Always carry adequate third-party liability coverage, you don't want to be underinsured, either.

  4. Think about insurance costs before you buy a vehicle

    If you don’t want to pay a lot for car insurance, a good rule of thumb is not buying anything brand new and never owning a sports/luxury vehicle. Some cars also have higher theft rates than others, which is one factor that is used to calculate your car insurance rates. Before you buy a vehicle, test out the Insurance Bureau of Canada’s “How Cars Measure Up” tool, which compares cars in terms of their relative insurance costs and safety features.

  5. Compare apples to apples

    If you’re comparing car insurance rates from multiple insurance companies, make sure you are being quoted for the same coverage across the board. For example, is your third-party liability set at $1 or $2 million? Are both collision and comprehensive on all the quoted rates? Then compare what types of losses are covered by each policy, how their claims process works, and what other options, like accident forgiveness, might be available. Sometimes, the best price doesn’t equal the best product.

  6. Increase your deductible

    The deductible is the amount you have to pay when you make a claim before your provider pays the rest. For example, if your car is damaged and will cost $2,000 to fix, and your deductible is $500, your insurance pays $1,500. If you increase your deductible, you’re telling the insurance company that you’re willing to pay more later (if you need to), which typically results in them giving you a discount now. Deductibles often range from $300 to $1,000 — the higher your deductible, the lower your car insurance premium.

  7. Ask about discounts

    Ask your insurance company what additional discounts they offer. Often if you bundle your car with home insurance, you can save. You might save money by installing a car alarm, using winter tires, or get a group discount through union or membership affiliation. Also, consider telematics or usage based insurance (UBI). UBI is an app or device which measures your driving and could ear you a lower rate.

  8. Don't miss a payment

    This may seem the most obvious piece of financial advice, but it’s especially true for car insurance. Suppose your insurance company doesn’t receive a payment. In that case, it could result in the automatic cancellation of your car insurance policy – and you could be on the hook for a lot of money if you get into an accident without coverage. Also, a missed payment can result in you being deemed a “higher risk” to your car insurance company, resulting in higher premiums when you renew.

  9. Compare car insurance quotes

    Many young drivers enlist themselves with the same company as their parents, which can be a good idea because it shows loyalty, and you may get discounts for having more policies. Still, shop around to compare quotes to see if you can find a lower price elsewhere.

Ready to save on car insurance?

Take a few minutes to compare personalized car insurance quotes from Canada's top providers, for free.

Author Bio

Matt Hands, Business Director of Insurance

Matt started his professional career at CARPROOF where he honed his marketing and analytical skills for over 3 years. Matt then took his wealth of experience to’s Toronto offices, working with insurance providers, agents, and brokers to grow and expand the Insurance business unit. He is a thought leader in the community and a valuable insurance resource to respected publications like the Globe & Mail, Toronto Star, Huffington Post, Yahoo News, and 680 news radio in Toronto.

The knowledge bank

A wealth of knowledge delivered right to your inbox

By submitting your email address, you acknowledge and agree to‘s Terms of Use and Privacy Policy. Contact us for more information. You can unsubscribe at any time.


We help you find better financial products for your specific needs. Whether you need a mortgage, credit card, savings account, or insurance coverage, we get you the information you need to choose better.

How does make money?

Financial institutions pay us for connecting them with customers. This could be through advertisements, or when someone applies or is approved for a product. However, not all products we list are tied to compensation for us. Our industry leading education centres and calculators are available 24/7, free of charge, and with no obligation to purchase. To learn more, visit our About us page.