Date Published: 2024/03/07

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10 Ways to Lower your Car Insurance Premiums

A young woman with red hair driving a vehicle during a drivers’ education class with a female instructor.

Looking for ways to lower your car insurance premiums? While certain factors impacting rates are beyond your control, there are opportunities for savvy drivers to save on their insurance costs.

In this article, we will explore ten potential savings opportunities that can help you lower your car insurance premiums without compromising your coverage.

1. Maintain a clean driving record

Insurance companies assess your risk level based on your driving history, making a clean record a key factor in securing favorable rates. To enhance your profile as a responsible and low-risk driver, uphold safe driving practices, adhere to traffic laws, and consider additional measures such as enrolling in a driver's education course, installing a dashcam, or using a telematics device. These proactive steps contribute to a safer driving experience and can result in discounts on your car insurance premiums.

2. Ask for a higher deductible

Consider opting for a higher deductible to lower your monthly insurance premium — provided you're prepared for the increased out-of-pocket expense if a claim arises. By willingly choosing a higher amount to contribute in the event of a claim, you demonstrate to insurers that you're willing to share more of the financial responsibility. Before raising your deductible, ensure the potential savings align with your overall budget and risk tolerance. 

3. Take advantage of discounts (discounts will vary depending on your insurance provider)

Explore your eligibility for common discount opportunities offered by insurance providers, such as:

  • Claims-free discount: Many providers offer a discount for being claims-free for a specific number of years.
  • Multi-vehicle discount: Insure two or more vehicles with the same provider for combined savings.
  • Safe driver discount: Maintain a clean driving record to qualify for discounts that reward safe driving habits.
  • Anti-theft device discount: Install approved anti-theft devices in your vehicle to lower the risk of theft and qualify for a discount.
  • Good student discount: If you or a family member on your policy is a student with good academic standing, inquire about this potential savings opportunity.
  • Association preferred rates: Some insurers offer preferred rates for alumni and members of specific organizations, such as select colleges and universities, employers, or professional groups.
4. Consider usage-based insurance

Usage-Based Insurance (UBI) offers drivers more control over their car insurance premiums. Installing a wireless telematics device or using a designated app on your smartphone allows your insurer to gather data on your driving behavior. This data is then used to determine your car insurance rate, rewarding less time on the road and good driving habits with lower car insurance premiums.

5. Reduce your annual mileage

Decreasing how often and how far you drive can help lower your premiums. Carpooling, using public transportation, and consolidating errands are effective strategies to reduce the number of kilometers you drive annually. If you work from home or are retired, ask your insurance provider about discounts for leisure drivers. 

6. Bundle policies

Many insurers offer preferred rates for bundling your car insurance with other policies, such as homeowners or renters insurance. Bundling not only saves money but also offers the convenience of always knowing who to contact in the event of a claim. 

7. Choose a vehicle that quotes low

When purchasing a new or used vehicle, consider safety features, theft rate, and repair costs. These are all factors your insurer will take into account when calculating your car insurance rate. Choosing a model with a favourable insurance profile often translates to lower premiums.

8. Swap for winter tires when the temperature dips

As of 2016, insurance providers in Ontario must offer a discount on car insurance to drivers who install winter tires on their vehicles between specific dates, typically November through April. Insurers acknowledge the reduced risk of accidents and claims attributed to the improved traction and handling winter tires provide. Check with your insurer to understand their specific requirements for applying the discount.

9. Ensure you have the right amount of coverage

Avoid overpaying by tailoring your coverage to meet your needs, considering factors like your driving habits and the replacement value of your car. An insurance broker can help to determine the right amount of coverage for you, working as your advocate and preventing you from paying more than you need to.

10. Shop around

One of the best ways to save on your car insurance premiums is to compare quotes from multiple insurance companies. An insurance broker can help you do this by representing your best interests and ensuring you receive the coverage you need at the best price.

At Orbit Insurance, our experienced insurance brokers are dedicated to finding the most suitable and affordable coverage options to meet your needs. If you're shopping for car insurance, call an Orbit insurance broker at 877-976-7248 for a free quote.

If you're a current Orbit policy holder and have questions about your current car insurance policy or want to discuss your eligibility for these insurance savings opportunities, contact an Orbit insurance broker at 877-976-7248.