Do Not Overestimate Mileage
How much you drive your vehicle directly affects your car insurance rate. You can use our car insurance comparison platform to see how much your rates will go up or down depending on how much you drive.
By limiting your driving, you may qualify for low-mileage discounts or specialized ‘pay-as-you-go’ insurance programs (like CAA MyPace). These programs can offer savings of up to 25% if you drive fewer than 12,000 kilometres annually.
Adjust Coverage as the Car Ages
Young drivers often keep full coverage longer than it makes sense. If your car is older and no longer worth as much as it used to be, keeping both collision and comprehensive coverage is not the most cost-effective strategy. At some point, your premiums and deductible may exceed the vehicle’s value.
Tell Your Agent about Security Features
Vehicle theft and vandalism are both leading causes of comprehensive claims. While comprehensive claims like theft or vandalism are not ‘at-fault’ collisions, insurance companies may still increase your premium if you file multiple claims in a short period.
Furthermore, in Ontario, many insurers have introduced a ‘High-Theft Surcharge’ of $500 to $1,500 for vehicles targeted by thieves. This mandatory cost increase can only be removed by installing an approved anti-theft tracking system.
Let your broker know about the security features you have installed on your car. See our list of the top anti-theft systems that will help you qualify for a car insurance discount.
Get a More Conventional Vehicle
This is one of the ways saving money on insurance will likely annoy you. Many young drivers want a certain type of car, but many are unaware of how insurance works. If you want a new Corvette or a Ferrari, you will pay a significant premium for insurance. Sports cars are involved in more accidents than standard cars, and younger drivers who buy them must be especially careful.
List Yourself on Your Parents’ Policy First
Principal drivers pay much higher rates than occasional operators. If you are obtaining your G1 permit in Ontario, you generally do not need to be listed as a rated driver yet, as G1 drivers are typically covered at no cost under the supervising driver’s policy.
The requirement to list and pay for a young driver as an ‘occasional driver’ applies only after they obtain a G2 license and can drive independently. Once you have experience, you can get your own policy.
Take a Ministry-approved Driving Course
New drivers who complete a Ministry of Transportation (MTO) approved Beginner Driver Education course can earn a significant discount on their premiums. Note that in Ontario, this insurance credit is generally only available to new drivers who have been licensed for three years or less.
Shop Around to Compare the Best Rates
Just because you’re young doesn’t mean all of your insurance rates have to be outrageously expensive. Don’t just get the first quote that comes your way. Use MyChoice to shop around and compare your options.
While your insurance rates are almost naturally going to be more expensive, you may find that one company is willing to give you a better rate than another. Car insurance companies are extremely competitive, and most of them want to give you the best rate. Take advantage of this and see what you can find.
Increase Your Deductible (Strategically)
Raising your deductible can significantly lower premiums. This is a controlled way to trade short-term savings for long-term risk, but:
- It works best if you have an emergency fund
- A higher deductible signals lower risk tolerance to insurers
- Even moving from $500 to $1,000 can make a noticeable difference
Drive Safely
Driving carefully is the best way to reduce your insurance costs. Many insurance companies offer discounts to safe drivers. As you gain experience, you can access specific rate reductions.
In Ontario, drivers receive a 10% discount on all coverages for one year after progressing from a G1 to a G2 license, and an additional 10% reduction for one year after obtaining a full G license, provided they maintain a clean record.
As you age and your driving record remains clean, your rates will go down. In Ontario, for example, MyChoice quote data shows that drivers aged 18 to 20 pay an average of about $5,400 per year, while drivers aged 21 to 24 pay closer to $2,800 per year, assuming no at-fault accidents or major convictions. That’s a drop of nearly 50% in just a few years.