10 Ways to Save Money on Car Insurance


Car insurance is expensive and unfortunately, there’s no way around it. It doesn’t matter if you’re an experienced driver or in your first year on the road, insuring a vehicle isn’t cheap. There are however ways you can save money on car insurance and in this article we’re going to talk all about that. Before we start listing tips we do want to remind you that British Columbia, Saskatchewan, and Manitoba have government-run car insurance so these tips may not apply in those provinces. 

1. Compare Rates of Multiple Companies

If you live in a highly competitive insurance market like Ontario or Alberta you’ll have plenty of opportunities to shop around for the cheapest insurance premiums. Be sure to check out online reviews of the companies before going with the cheapest provider because just because the premium is cheap doesn’t mean you’ll be covered in the event of a claim.

2. Loyalty Discounts

While this tip only applies to experienced insured drivers, staying with the same insurance company can result in a discounted rate. Not all insurance companies offer loyalty rates but it’s worth asking your current provider if they’d offer you a discount for staying with them.

3. Have a Good Credit Score

Insurance companies will look at your credit score when deciding how liable you are as an insuree. A low credit score can result in paying a heftier insurance premium so it’s important that you have a good credit score when shopping for car insurance. You can check your credit score for free using Equifax or Transunion. 

4. Buy a Used Car

This one is pretty simple, the more money your car costs to replace, the more it’s going to cost you to insure. So if you’re trying to save money on insurance, buying used is a smart idea. 

5. Have a Clean Record

If you have a history of traffic tickets, lost demerit points and collisions, it’s going to be difficult to find a cheap insurance plan. That’s why its so important that you try and keep a clean driving record. Having no history of tickets or collisions will make it much easier to find an insurance premium at a reasonable rate. 

6. Drive Safe

While most people are unaware of this, having safety related features on your vehicle can actually reduce your insurance premium. Having an anti-theft alarm system, winter tires and driver assist technology are all features that reduce the likelihood of having to make a claim and therefore lower insurance premiums. 

7. The Type of Vehicle You’re Insuring

Your insurance premium and the model of vehicle you’re attempting to insure are directly correlated. For example, you will pay far more for a 2-door red sports car than you would a black 4-door sedan. Another factor that affects insurance premiums is the safety rating of the car, a car with a higher safety rating is more likely to get a better insurance rate. 

8. Bundle Insurance Policies 

Another great way to save on car insurance is to bundle your car insurance with anything else you may already insure. Own a boat, motorcycle RV or home? If so, consider doing all of your insurance through the same company in order to pay a lower premium. This also makes managing your insurance much easier as you can do all your business through the same provider. 

9. Consistent Driving History

Insurance companies like to see consistency when looking at your driving history. If they see you’ve consistently been driving an insured vehicle, they’ll feel more comfortable providing you with a lower premium. If they see gaps in time where you weren’t driving, they will be more inclined to insure you at a higher rate. Even if you don’t own a vehicle, try and get on as a secondary driver for a family member or close friends vehicle to keep your insurance history active.

10. Do a Driving Course

The last thing we recommend doing to lower your car insurance costs is to take a driving course. While it may not be as fun as having a friend or family member teach you how to drive, doing a professional driving course is a great way to get a discount on car insurance. On top of lowering your insurance, it should help you get a better understanding of how to navigate the road, lessening your chances of being involved in a collision. 

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