Top13 Ways to Get Cheaper Car Insurance

In Canada, the spectrum of insurance rates is as vast as the country’s expanse. From Quebec’s budget-friendly premiums to BC’s high rates, all Canadian drivers seek ways to obtain more affordable car insurance.

Here, we’ve compiled a list of 10 Canadian auto insurance providers that could potentially offer lower rates, along with 14 strategies to help you reduce your car insurance premiums.

Indeed, it’s wise to explore different options, compare rates, and carefully examine policies when searching for an insurance provider that strikes the perfect balance between affordability and comprehensive coverage.

First, who offers the cheapest auto insurance in Canada?

Certainly, determining the cheapest car insurance providers in Canada can be challenging due to varying factors such as location, driving record, age, and vehicle type. However, some insurance companies in Canada that may offer more affordable rates include:

1. Belairdirect Auto Insurance: Known for affordable rates and discounts for safe drivers.

2. Intact Auto Insurance: Offers competitive rates for good driving records and low-risk areas.

3. Desjardins Auto Insurance: Popular among young drivers and those with multiple vehicles, offering discounts.

4. TD Auto Insurance: Provides affordable rates for good driving histories and various discounts.

5. The Co-operators: Offers lower rates to co-op members as a benefit.

6. Aviva Auto Canada: Competitive rates for clean driving records and discounts for bundling policies.

7. Economical Auto Insurance: Affordable rates for good driving records and multi-vehicle policies.

8. Allstate Auto Insurance: Competitive rates and discounts for safe driving and bundling policies.

9. RBC Auto Insurance: Affordable rates for good driving records and discounts for bundling and multiple cars.

10. Sonnet Auto Insurance: Affordable rates and discounts for good driving records and online quotes.

How to get cheaper auto insurance

Finding affordable car insurance is not a one-size-fits-all approach. To assist you in discovering the cheapest auto insurance in your province or territory, we have compiled a list of helpful tips.

(Important Note: British Columbia (ICBC), Saskatchewan, and Manitoba have government-run auto insurance, while Quebec’s public insurer manages bodily injury insurance only.

If you reside in these provinces, shopping around options might be limited, but you can still customize your coverage according to your specific needs.)

For BC residents, we have prepared a guide on ICBC Insurance Renewal to help you navigate the process.

1. Assess Your Coverage Needs: Depending on factors like your car’s age, location, and driving habits, you might not require a fully comprehensive policy.

Periodically review and reevaluate your insurance needs to avoid overpaying for unnecessary coverage, such as collision insurance for older vehicles.

2. Consider Usage-Based Insurance (UBI):

UBI, or telematics, offers a “pay-as-you-drive” insurance plan based on your actual driving habits, allowing potential savings of up to 30% on yearly premiums.

However, it’s essential to be aware of potential privacy concerns and accuracy issues in some cases, as well as penalties for reckless driving.

3. Compare Rates: While not possible in provinces with public insurance, residents of high-competition provinces like Ontario or Alberta can shop around for the best auto insurance rate.

Utilize comparison sites and online reviews to find providers offering the most value.

4. Loyalty Discounts: Despite shopping around being beneficial, staying with your current insurance provider can lead to loyalty discounts.

Check with your provider periodically, especially during renewal, to inquire about loyalty-based savings.

5. Maintain Good Credit: Insurers often consider applicants’ credit scores to assess their liability.

A poor credit history can affect your rate quote, so ensure your credit report is accurate and up-to-date before seeking car insurance.

6. Choose a Used Car: Insurance costs are influenced by a vehicle’s replacement cost. Opting for a used car with a lower value can result in lower insurance premiums compared to a brand-new, more expensive model.

7. Enhance Road Safety Features: Adding safety features to your vehicle, such as snow tires, advanced anti-theft systems, and collision prevention technology, can lead to reduced premiums.

Discounts vary by province, so it’s best to contact your provider to inquire about available safety add-on discounts.

8. Maintain a Clean Driving Record: Traffic tickets, demerit points, and collisions on your driving record can negatively impact your insurance coverage calculations.

Keeping a clean driving record can result in discounts from both public and private insurance providers.

9. Consider Your Car’s Safety Rating:

Vehicles with excellent crash test ratings, low-theft scores, and less attention-attracting qualities typically qualify for lower insurance rates.

While flashy sports cars may be appealing, they often come with higher premiums compared to more practical and safe options.

10. Bundle Policies Together: Many private insurance providers offer significant discounts (ranging from 5% to 25%) for bundling different insurance services, such as renters, homeowner, boat, RV, motorcycle, and car insurance.

Bundling can simplify your dealings with a single provider and streamline the renewal process.

11. Opt for a Higher Deductible:

If you’re comfortable with a higher out-of-pocket cost in case of an accident, choosing a higher deductible can lower your premiums.

However, this approach may not be advisable for low-worth vehicles, as you don’t want to pay deductibles that exceed your car’s value.

12. Maintain Uninterrupted History:

Consistency in your insurance history is preferred by insurers. Avoiding gaps in your insurance coverage can help keep your premiums lower.

Even if you don’t currently own a car, consider being added as a secondary driver to a family member or friend’s policy to maintain a continuous record.

13. Pay Your Premium in Full: Some insurance companies offer decent discounts on your premium if you pay it in full during policy renewal.

Paying bi-annually might also come with a smaller discount. Additionally, paying the premium in one go helps avoid the risk of missing monthly payments and incurring fees or policy cancellation. If you foresee any payment issues, proactively communicate with your insurer before the due date.

Get Car Insurance Quotes Now

Leave a Comment

error: Content is protected !!