For those on the hunt for potential savings, the cheapest time to compare car insurance rates isn’t tied to holiday sales or seasonal patterns. Unlike travel or retail, the most ideal time to look for the best deal on car insurance is based on your individual policy, when your premium increases, during your 30-day renewal window, and any life changes that can impact your rates.

“Car insurance is a competitive private market in Ontario, which means the same driver can receive meaningfully different quotes from different insurers—sometimes by hundreds or even thousands of dollars annually,” says Daniel Ivans, Rates.ca insurance expert and licensed insurance broker. To find the best rate on car insurance, experts recommend shopping around.

In Canada, anyone who owns a car must have valid auto insurance in order to operate their vehicle. The cost of car insurance depends on a variety of factors such as the car you drive, where you live, your age, and driving record.

It is worth shopping around to save money on necessities like car insurance.

Read more: What happens if you're in an accident without car insurance?

What is the best time to compare car insurance rates?

The best time to compare car insurance rates is when your personal circumstances change and typically during your renewal window to avoid cancellation penalties.

“Major life changes are when you’re most likely to see a meaningful shift in your rate—in either direction—and that’s when shopping has the most material impact,” says Ivans.

Here are some examples of milestones that could lead to better rates: 

• A new driver in your household getting their full G license
• Completing an accredited driving training program
• Starting a new business
• Getting married
• Moving to a new postal code
• Retiring
• Significantly reducing your annual kilometres
• Reaching a clean driving record after a previous conviction or claim has aged off your record

It’s important to note that these milestones may not guarantee discounts, but Ivans says these types of changes can make it worthwhile to shop around. 

Should you wait for renewal to compare car insurance rates?

In Canada, car insurance policies are typically for a one-year term and insurance providers are required to notify you 30 days before your policy automatically renews. This window offers a convenient time to compare car insurance rates, explains Ivans, because it can help you avoid any mid-term cancellation penalties.

That said, the renewal window isn’t the only time to shop around. “If savings from switching mid-term outweigh the penalty, waiting for renewal isn’t necessarily the right call,” says Ivans. 

Why it’s important to shop around for better car insurance rates

A 2021 Ontario survey conducted on behalf of Rates.ca indicates that in Ontario, people are less likely to shop around for car insurance compared to other routine expenses like cellphone plans or internet services. Sticking with the same provider may seem like the easiest option, but it could result in missing out on big savings.

“Insurers each have their own underwriting appetites, risk tolerances, and pricing models, so loyalty to one company doesn’t guarantee you’re getting the best rate for your current risk profile,” says Ivans. “Shopping around is how you make the market work in your favour.”

Is there a worst time to shop for car insurance?

The Insurance Bureau of Canada highlights that shopping around is the “simplest way” to save on your rates. However, there are times when it’s worthwhile to stay put. Here are some scenarios when switching your auto insurance provider is not recommended.

• Mid-term switching. Switching mid-term incurs cancellation fees. “Most policies carry a short-rate penalty for cancelling before the term ends, which represents an administrative cost that gets passed to the policyholder,” says Ivans. Check to make sure that potential savings outweigh penalties. 
• Right after an at-fault collision where your current policy includes accident forgiveness. If your existing policy includes accident forgiveness, this will protect your rate with your current insurer after a first at-fault claim. If you switch providers at this time, you lose that protection. “Your new insurer will see the at-fault accident on your record and rate you accordingly,” explains Ivans. “Shopping in that window almost guarantees you’ll pay more elsewhere than you’re currently paying, or more specifically, likely waste your time.”

Learn more: Will an at-fault collision always increase my car insurance premiums?

How to find deals when shopping around for car insurance 

Here are strategies to save money on your car insurance when comparing rates from providers.

• Be proactive and talk to your provider. In some cases, there are things you can do or add to your vehicle to help reduce your premium. Some providers, for example, offer discounts for drivers with theft-deterrent systems, winter tires, or who complete driver’s training. Take a proactive approach, says Ivans, and ask your provider what measures could make you eligible for discounts. 
• Ask about bundles. Ivans estimates that bundling home and auto insurance can save you between 10 and 25%.
• Use a comparison tool. Rather than getting quotes from individual insurance providers, use a comparison tool like Rates.ca to find the best deal on car insurance. 
• Be consistent. When shopping around, Ivans notes it’s important to make sure you are comparing equivalent coverage (i.e. same limits, same deductibles, same endorsements) because “discrepancies between your application and your record will catch up at claims time.”
• Make the most of your renewal window. When you receive your renewal notice, use that as a reminder to compare car insurance rates and shop around. While this window is typically 30 days, Ivans says that shopping around and getting the best deal doesn’t have to take a lot of time. “A good professional can get a new policy set up in under an hour,” he says. 
• Work with an insurance broker. “A broker can look across multiple markets at once and identify where your specific risk profile is priced most competitively—which is harder to replicate on your own,” says Ivans.
• Compare coverage, not just cost. When comparing car insurance policies, prioritize the policy that works best for you. Do you need the option of a rental car in the case of a collision? Are you comfortable with a higher deductible in order to get a lower insurance premium? Work with your agent or broker to find the most cost-effective option that fits your needs.

Read next: When is the best time to buy a car in Canada?

Frequently Asked Questions (FAQs)

What time of year are car insurance rates the lowest?

According to Daniel Ivans, licensed insurance broker and insurance expert, there is no current research to support that car insurance rates dip at any particular time of year.

Is the renewal window the best time to shop around for car insurance?

The renewal window (~30 days before your policy renews) is a great time to compare car insurance rates. However, Daniel Ivans says if you experience a change to your personal circumstances outside of that window, like adding a new driver to your plan, it’s worth shopping around to see if the potential savings could outweigh any mid-term cancellation fees.  

Is there a bad time to switch car insurance providers?

Avoid shopping around after an at-fault collision if your existing plan includes first-time accident forgiveness. Daniel Ivans warns that switching providers at this time will likely increase your premiums.