To research this topic, we reviewed FSRA guidance on auto insurance rates and rating rules, Ontario Regulation 664, and FSRA’s consumer guidance on saving on auto insurance.
How Does a No-Claims Car Insurance Discount Work?
Claims-free status can help lower your car insurance premium, but there isn’t a standard discount that applies across Ontario. Each insurer has its own criteria and approved rating rules.
Insurers can look at your claims history when setting your rate. If you change insurers, they may look at your history with previous insurers. However, they will apply their own claim-free discount criteria.
Read More: 10 Tips to Lower Car Insurance in Ontario
How Much Can My Car Insurance Go Down After One Year of No Claims?
Double-check with your insurer if they offer a claim-free discount. The discount itself usually varies by insurer and can be offset by premium increases, which means your rate may just stay flat
Keeping a clean driving record usually helps, but it doesn’t guarantee you a lower rate when your policy renews.
Read More: How to Manage a Car Insurance Renewal
What Can I Do to Save Money on My Car Insurance Premium?
Driving safely and not being involved in accidents can help over time, but you shouldn't avoid reporting an accident just to keep a discount. In Ontario, drivers must report accidents above a certain threshold. Policies also include notice requirements. Check with your agent or broker if you’re unsure whether an incident needs to be reported.
- Shop around for auto insurance quotes. Rates may be lower with another insurer. You can use MyChoice to compare quotes from multiple insurers.
- Consider increasing your deductible. If you’re comfortable paying a higher deductible after an accident, increasing it may lower your premium.
- Bundle policies. Many insurers offer discounts if you insure your car and home or tenant policy with the same company.