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How to save on car insurance

Car insurance is one of the few bills where your own behaviour moves the price — and a few deliberate choices can cut it meaningfully without dropping coverage. Here are eight that work, sourced to the Insurance Bureau of Canada, provincial regulators and the insurers themselves.

Verified June 13, 2026

  1. 1

    Enrol in telematics (usage-based)

    Apps that score your driving give the biggest discounts: Intact myDrive and Desjardins Ajusto offer ~10% just to sign up and up to 25–30% for safe driving. CAA MyPace charges by the kilometre — ideal if you drive under ~12,000 km a year.

  2. 2

    Bundle home + auto

    A multi-policy discount cuts both premiums and is the easiest non-driving saving. Almost every private insurer offers it.

  3. 3

    Use the winter-tire discount

    Ontario requires insurers to offer a winter-tire discount, and many do elsewhere. Install four winter tires and tell your insurer — it’s free money in much of the country.

  4. 4

    Raise your deductible

    A higher collision/comprehensive deductible lowers the premium. On an older car, also consider dropping collision entirely once it costs more than the car is worth.

  5. 5

    Drive less / report low mileage

    Lower annual mileage means lower risk. If you drive little, a low-mileage rate or a pay-per-km program like CAA MyPace can save a lot.

  6. 6

    Keep a clean record

    Your driving and claims history is among the biggest rating factors. Avoid small claims and tickets, and the savings compound year over year.

  7. 7

    Add a second vehicle / driver

    Insuring more than one vehicle with the same insurer earns a multi-vehicle discount — often 10–15%.

  8. 8

    Use a group / affinity rate

    Employer, union, association and alumni programs (The Personal, TD Meloche Monnex) offer preferred auto rates you may already qualify for.

Don't trade safety for a few dollars

Cutting your liability limit to the legal minimum saves a little but exposes a lot — one serious at-fault accident can exceed it and put your assets at risk. Lower the premium with telematics, deductibles and discounts first; keep a healthy liability limit.

What actually sets your premium

  • Your driving record — tickets and at-fault claims are the biggest behavioural factor
  • Where you live and park — postal-code claims and theft patterns
  • The vehicle — repair cost, safety, theft rate and value
  • How much you drive, and your commute distance
  • Your coverage choices — liability limit, deductibles, collision/comprehensive

Frequently asked questions

What is the fastest way to lower my car insurance?
Enrol in your insurer’s telematics app and bundle with home insurance. Telematics like Intact myDrive and Desjardins Ajusto give roughly 10% just for signing up and up to 25–30% for safe driving; bundling cuts both premiums. Neither reduces your coverage.
Do winter tires lower my insurance?
In Ontario, insurers are required to offer a winter-tire discount, and many offer one elsewhere too. Install four winter tires (not all-seasons) and tell your insurer — it’s one of the easiest discounts to claim. Exact amounts vary by insurer and province.
Is usage-based (telematics) insurance worth it?
For most safe drivers, yes — the only risk is that hard braking or late-night driving can reduce the discount. If you drive few kilometres, a pay-per-km program like CAA MyPace (aimed at drivers under ~12,000 km/year) can beat a traditional policy outright. Heavy or aggressive drivers may prefer a flat rate.
Should I drop collision coverage on an old car?
Often, yes. Once your annual collision/comprehensive premium plus deductible approaches the car’s actual value, the coverage can cost more than it would ever pay out. Keep mandatory liability and accident benefits; reconsider physical-damage coverage as the car ages.
Can I shop around in BC, Saskatchewan or Manitoba?
For basic coverage, no — those provinces have public insurers (ICBC, SGI, MPI) for the mandatory portion. But you can still shop optional/extra coverage from private insurers, and the saving tips here (winter tires, low mileage, clean record, higher deductible) still apply. See the public-vs-private breakdown.
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Educational only, not insurance advice. Tips are sourced to the Insurance Bureau of Canada, provincial regulators and insurers’ own pages and verified June 13, 2026; eligibility and discount amounts vary by insurer, province and profile — confirm with a licensed broker or insurer. See our methodology.