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15 ways to get cheaper car insurance
KEY FINDINGS
- Bundle auto and home insurance or insure multiple vehicles to unlock discounts of up to 25%, one of the fastest ways to lower premiums.
- Sign up for usage-based insurance programs to cut rates by up to 30% for low-mileage, safe drivers through app-based tracking.
- Raise deductibles and drop collision coverage on older vehicles to reduce your monthly insurance premiums.
- Install winter tires and anti-theft devices to qualify for additional insurer discounts in many Canadian provinces.
- Compare quotes annually. As life changes, shifting risk factors can significantly impact your car insurance prices over time.
Originally written: February 20, 2025 by Liam Lahey
Car insurance doesn’t have to be expensive, but how much you spend depends on more than just your driving record. Insurers base your premium on dozens of factors, many of which change over time.
Major life events such as getting married or separated, moving to a new address, retiring or turning 60, or adding (or removing) a teenage driver can all significantly affect your rate. That’s why the insurer that offered you the best price three years ago may no longer be competitive today.
Reviewing your policy at least annually, understanding how pricing works, and being aware about which strategies matter in 2026 is the key to finding cheaper car insurance.
1. Insure multiple cars on one policy
Insuring more than one vehicle on the same policy usually qualifies you for a multi‑vehicle discount, typically ranging from 8–25%, depending on the insurer.
This works best when:
- Both vehicles are registered at the same address
- Drivers listed on your policy are part of the same household
- If one driver has a poor driving record, savings may be partially offset, so it’s worth pricing policies together and separately.
2. Bundle auto and home insurance policies
Combining your car and home insurance can save up to 25%.
No home? Many insurers also allow bundling auto with:
- Condo insurance
- Renters insurance
- Motorcycle or recreational vehicle policies
3. Install winter tires and let your insurer know
In Ontario, all insurers are required to offer a winter tire discount, generally up to 5%, if you use approved winter tires during qualifying months.
This requirement has been in place since 2016 and still applies in 2026. Many insurers in other provinces, including Alberta, also offer optional winter tire discounts.
The discount isn’t automatic. You must notify your insurer and confirm eligibility criteria, such as installation dates.
4. Ask about every available discount
Auto insurance discounts are broader than most people realize and not always advertised prominently.
Depending on the insurer, discounts may apply for:
- Good students
- Students away at school without regular car access
- Affiliation discounts (alumni, unions, professional associations)
- Low‑mileage driving
- Roadside assistance or vehicle recovery programs
Always ask for a full discount list: insurers won’t always volunteer it.
Read more: What discounts can lower your auto insurance premium?
5. Increase your insurance deductibles (carefully)
In a nutshell, the higher your deductibles are, the lower your insurance premium is.
If you switch your deductibles from $500 to $1,000, you'll likely save between 5–10% on insurance costs. That said, insurance is meant to protect against losses you can’t afford. If a higher deductible would force you into debt after a claim, the savings may not be worth it.
6. Drop comprehensive and collision coverage on older vehicles
If your car is older (often 10+ years, depending on car value), it may be time to rethink your collision and comprehensive coverages.
That said, it's not always a clear-cut decision: you need to weigh the cost of coverage with the value of your car and your chosen deductibles. For example, if you have an old car that's worth $1,000 and your deductible is $1,000, that coverage is not going to be worth much.
7. Pay your premium annually instead of in monthly installments
Paying your car insurance premium once a year instead of monthly can save you some money. Many insurers offer discounts for full lump sum payments. Monthly payments usually come with extra administrative fees, which can add up.
While savings vary, you can typically expect to save about 7–8% on your premium when you pay annually. The exact percentage can change depending on your insurer and specific policy.
Read next: Should you pay your insurance premium annually or monthly?
8. Drive defensively and protect your driving record
Your driving record remains one of the strongest pricing factors in auto insurance.
- Minor convictions can affect your rates for up to three years
- At‑fault accidents typically remain on record for six years or more
- Distracted driving convictions are among the most expensive mistakes you can make
Even holding a mobile device at a red light can result in a charge—and a premium spike.
9. Enroll in a usage-based insurance program
A usage-based insurance (UBI) program via telematics offers you:
- An immediate signup discount (often 5–10%)
- Ongoing savings of up to 25–30% for safe driving behaviour
Programs track speed, braking, acceleration, time of day, and distance driven via an app or plug‑in device.
They’re best suited to drivers who:
- Drive fewer kilometres
- Avoid late‑night driving
- Maintain smooth braking and acceleration habits
Read more: How much can good drivers save with usage-based auto insurance?
10. Limit your driving time
The more you drive, the greater the chance of getting into an accident. Insurance rates are higher for people with longer commutes. Consider taking public transit or carpooling with others, if possible.
If you can do so safely, limiting your time on the road can help you save money on parking, gas, and may lower your insurance premiums. Be sure to notify your broker or insurer if you are driving less or not at all to make savings.
Read more: 5 expenses that will cost Canadians more in 2026
11. Choose a "lower-risk" car
Insurance premiums aren’t just about price; they’re about claims history.
Cars that are:
- Frequently stolen
- Expensive to repair
- Popular with thieves
…cost significantly more to insure.
In recent years, high‑value pickups, certain SUVs, and specific luxury models have seen sharp premium increases due to theft trends and repair costs.
Related: Thinking of upgrading to a 2024 Dodge Ram? Prepare to pay 408% more for comprehensive insurance
12. Take advantage of anti-theft devices and safety technology
Many insurers offer discounts for:
- Factory anti‑theft systems
- Vehicle tracking or immobilization devices
- Advanced driver‑assistance systems (ADAS)
With auto theft rates remaining high in parts of Canada, some insurers now strongly incentivize or even require enhanced anti‑theft measures on high‑risk models.
13. Just starting out as a driver? Enroll in approved driver training
If you're a new driver and you've completed a Ministry of Transportation approved driving course in the last three years, many insurance companies will give you a discount.
How much you save usually depends on the insurance company and program, but it's typically between 10–20%.
These courses also:
- Accelerate licensing timelines
- Reduce long‑term risk exposure
- Improve insurability after your first policy
14. Review your insurance policy every year
Life changes affect insurance pricing more than most people realize:
- Marriage or separation
- Address changes
- Retiring or turning 60+
- Adding (or removing) teenage drivers
Your insurer that was the cheapest provider three years ago, may no longer be competitive today.
Learn more: Will July 1 auto insurance reforms in Ontario impact you?
15. Compare car insurance rates
Car insurance coverage may be standard throughout your province, but insurance premiums are another story. Coverage from one company to the next can vary by hundreds, if not thousands of dollars a year.
The only way to make sure you are getting the best price for your policy is to compare quotes whether your auto policy is up for renewal or not.
By being proactive and informed, you can find plenty of ways to reduce your premiums. Whether it's bundling policies, checking out discounts, or trying usage-based programs, these strategies help you make smarter insurance choices.
Read next: Which vehicles are cheapest to insure by fuel type in Canada in 2026?
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Arshi Hossain, Associate editor
Arshi Hossain is the associate editor at Rates.ca. She has 4+ years of experience in delivering strategy-backed digital content through various mediums. Her expertise lies in breaking down complex information, meeting people where they are, and in the moments that matter.
Prior to joining Rates.ca, she worked in the editorial and digital content space at Wealthsimple, supported digital strategies, and UX writing for payment products and solutions at Bank of Montreal. She has also worked with startups to support editorial, content writing, communications, copywriting, and marketing needs.
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