What’s the secret to cheap car insurance? Compare more companies!
It’s no secret that car insurance rates in some Canadian provinces, such as Ontario and Alberta, are extremely high.
The secret to finding cheap car insurance in these provinces is to compare auto insurance rates from as many insurers as possible. Some websites compare rates from just a few providers, but claim they will save you thousands of dollars. We are transparent about the insurers we work. We search for the cheapest car insurance rates across 25 insurance companies – see above (varies by province). This is, by far, more than the most other websites out there. Give it a try and start saving today.
What are typical car insurance premiums across Canada?
The chart above illustrates the average auto insurance premiums across Canada. Typically the province of Ontario is characterized by the highest auto insurance rates. Quebec, as a rule, has more affordable car insurance premiums since the health part of the insurance (e.g. bodily injuries) is covered by the government. Not all provinces allow customers to choose from a variety of insurers. Three provinces have crown companies being the only source of vehicle insurance:
– BC with ICBC: Insurance Company of British Columbia: Link
– MB with MPI: Manitoba Public Insurance: Link
– SK with SGI: Saskatchewan Government Insurance: Link
How can you get cheap car insurance rates?
If you are interested in getting a cheap vehicle insurance, we share with you several ideas below and hope that you will be able to get an affordable auto insurance policy.
- Bundle: Do you need Home and Auto Insurance? Most companies will offer you a discount if you bundle them together.
- Professional Membership: Are you a member of a professional organization (e.g. Certified Management Accountants of Canada or The Air Canada Pilots Association)? Then some insurance companies offer you a discount e.g. Meloche Monnex
- Seniors: Many companies offer special pricing to seniors. In general, car insurance rates for seniors are cheaper than for young drivers.
- Being a second driver: Driving a car only occasionally? Become a second drive instead of being a principal driver and your vehicle insurance rate will go down.
- Rental car rider: If your existing auto insurance policy does not cover your rental car, you can often add it as a rider (policy extension) for $20-30 dollars a year. Compared to $20/day you would pay when renting a car, it’s not a bad deal!
- Improving your driving record: Do you have a bad driving record? Every three years previously incurred tickets are removed from your insurance history and your insurance premiums can go down.
- Age: Senior drivers enjoy lower auto insurance premiums. Thus in several years your premiums can go down.
- Anti-theft system: Installing a certified anti-theft system in your car results in a lower risk of theft and thus can lead to insurance discounts.
- Short distance to work: Finding a house close to your place of work reduces the distance that you need drive daily to work and thus results in lower insurance premiums.
- Pay-as-you-drive: Some insurance providers can reduce your insurance premiums based on your driving profile (capturing data via a special device added to your vehicle). Insurance companies like Desjardins Insurance or Industrial Alliance attract customers promising cheaper vehicle insurance premiums if you can demonstrate that you are a safe driver.
Young drivers in Canada are in a less favourable situation than other drivers, when it comes to insurance rates, because insurance companies use statistics that demonstrate that young drivers have more insurance claim costs (more accidents and/or higher costs per claim). This is mainly due a to lack of driving experience.
This poses an important question, especially for responsible drivers, of how to reduce high car insurance costs for young drivers.
Today, we will look at tips to reduce the cost of car insurance for young drivers.
- Students and Alumni: Some schools and post-secondary institutions provide insurance discounts with carriers they have partnered with, and those partnerships don’t end when you graduate. Student and alumni discounts are a great way to save on car insurance for young drivers.
- Occasional Driver: If you only need to drive occasionally, get added to the primary driver’s insurance as the second driver.
- Professional Associations and Membership: If you are a member of an association or group, such as a CPA, you may get discounts with certain carriers.
- CAA Member: CAA provides insurance discounts to its members.
- Direct Insurers vs Brokers: A broker shops the market for you while a direct insurer works for just one insurance company. If you favour a certain insurance brand, speak to their direct insurance agent to get the best deal on their products.
- Welcome and New Client Discount: New to the insurance company? They may welcome your business by giving you a discount.
- Pay-As-You-Drive: Some carriers will allow occasional drivers to get a policy based on how often they drive. Driving less can save you a lot of money on premiums.
Also – don’t forget – your birthday means you have another year of driving experience. Make it a habit to get a new car insurance quote on an annual basis.
If you are new to Canada and have just received a driver’s license, the key question that will determine your auto insurance rates is if the carrier will acknowledge your previous driving experience abroad.
Insurers fall into two different categories when it comes to out-of-country driving experience:
Those that require you to start from scratch: Some carriers will not acknowledge any previous driving experience that took place outside of Canada; they will view you as a first-time driver without a driving record.
Those that will continue your driving record: Some companies will consider your previous experience and will offer you a rate based on how long you have been driving, no matter where you got your on-road experience. Check with a broker to see which companies consider previous out-of-Canada experience so you can reduce your chances of a denial and increase your chances of getting the best possible rate.
Here are more tips on getting car insurance if you are new to Canada:
If you are looking for a full list of cheap car insurance tips, you will find this car insurance savings list handy. The tips are structured across several topics:
- Your driver profile
- Details of your insurance policy
- Your location
- Your habits
- Your car (e.g. model, year of build, etc.)
- Your memberships and affiliations
Car insurance rates differ among aspects, such as the make, model, and year of your vehicle. The following cars (as per InsuranceHotline) are cheaper to insure than others.
- Volkswagen Jetta
- Volkswagen Golf
- Toyota Camry
- Hyundai Accent
- Chevrolet Cruze
- Mazda Mazda3
- Hyundai Elantra
This is determined based on the frequency of accidents and other claims (e.g. theft, etc.) associated with these models.
Our Publications related to Auto Insurance
Car Insurance in Alberta – Top Media Stories, Spring 2017
May 31st, 2017
Cheap Car Insurance – 7 Things to Know if You Are New to Canada
March 19th, 2017
111 Insurance Myths – Everything You Must Know
November 14th, 2016
Ontario Car Insurance – Will the Premiums Climb Up in 2017?
November 1st, 2016
Weekly InsurEye Digest: ON Car Insurance Rates and more
October 24th, 2016
Auto Insurance by Province