Ontario is one of the most expensive places to live and drive in, so it’s important to weigh your choices when choosing car insurance. Fortunately, there are many simple things you can do to keep your insurance rates low.
By researching insurance providers and making small efforts to improve your driving skills, you can avoid soaring premiums.
Lowering Your Car Insurance Rate At a Glance
- Car insurance in Ontario is expensive because of insurance fraud, bad weather, and a rising number of accidents.
- Simple ways to lower your auto insurance rate include improving your driving skills, comparing quotes between providers, installing an anti-theft device in your car, and getting a policy with a higher deductible.
Why is Car Insurance in Ontario So Expensive?
Car insurance rates in Ontario are notoriously high due to insurance fraud, with 80% of FSRA poll respondents claiming it’s the reason their premiums are increasing. These fraud schemes include fake pink slips, insurance agent scams, and staged auto collisions, causing rates to soar.
Increasingly bad weather is also a cause for higher insurance premiums, along with more cases of distracted driving and more expensive vehicles on the road.
Tips for Lower Your Car Insurance Rate
As car insurance rates in Ontario soar, it’s imperative to find the best ways to save on your premiums. Here are ten useful tips for keeping your car insurance rates low.
1. Bundle Your Insurance
Insurance bundling or purchasing multiple policies from the same provider can qualify you for savings between 20% and 50%. Plus, bundled insurance is easier to manage, reducing the chances of forgetting to pay your bill.
Some providers offer single deductibles for claims affecting both your home and vehicle, reducing out-of-pocket expenses when you make a claim.
2. Get a Multi-Car Discount
If you have multiple vehicles in your household, combining them all in one policy can save you money. To qualify, drivers must live in the same household and be related by blood or marriage. Unrelated drivers can be eligible if both people own the vehicle.
Many multi-car insurance plans allow drivers to specify tailored coverage for each vehicle. For example, you can adjust coverage levels based on each vehicle’s specific needs, providing drivers with the appropriate amount of coverage without paying unnecessary costs.
3. Improve Your Driving Skills
When drivers are involved in an at-fault accident, rates increase upon renewal. A clean driving record decreases costs because you’re less likely to get into an accident and file a claim.
Some insurance companies also provide discounts to drivers who’ve taken defensive driving courses, though different providers have varying rules about accreditation.
4. Don’t Pay for Coverage You Don’t Need
The Canadian government requires drivers to get basic auto insurance, but you may only need some add-on you see on an insurance website. For instance, if your vehicle’s value is under $2,000, replacing and repairing certain parts out-of-pocket may be cheaper than paying high premiums.
When shopping for insurance add-ons, measure the cost of your policy against the expenses you can realistically incur in case of an accident.
5. Get a Policy with a Higher Deductible
A deductible is how much you pay in case of a loss. Getting a low deductible may seem reasonable, but it does result in higher premiums. Increasing your deductible can lower your annual premium – just remember you’ll pay more out-of-pocket in case of an accident.
Higher deductibles also discourage smaller claims, since you’re more likely to pay for damages yourself rather than your insurance provider. Fewer claims keep your claims history clean and discourages providers from increasing your rates in the future.
6. Try Usage-Based Insurance
Usage-based insurance policies reward drivers for being safe on the road. They use telematics to measure driving habits like quick acceleration and sharp breaking. Many options reward a discount upon signing up with opportunities to get bigger discounts upon renewal.
New drivers may benefit from usage-based insurance most as it provides quicker opportunities to build up their insurance history.
7. Install an Anti-Theft Device
Auto theft is prevalent in Ontario, so installing an anti-theft device is a good move. You’ll decrease the likelihood of your vehicle getting stolen while potentially lowering your insurance rates.
Some anti-theft devices include systems that shut down your fuel pump or starter motor to prevent thieves from driving away with your car. Depending on your provider, you can save up to 20% on premiums with an anti-theft device.
8. Compare Quotes from Different Providers
Comparing insurance quotes between providers is the best way to determine whether you get the most bang for your buck. However, finding cheap rates isn’t the only criteria you should note – it’s just as vital to understand an insurer’s creditworthiness.
If an insurer promises a good policy, it should have the financial strength to pay its insurance claims. Review the potential insurer’s claims history or talk to friends and family who have policies with a particular provider.
MyChoice can help you compare insurance quotes based on your location, your driving history, and the vehicle you drive.
9. Get Winter Tires
Canada is known for its harsh winters, and driving on slippery roads can increase your risk of an accident. Getting winter tires can safeguard your vehicle by providing better traction and making it easier to brake in snowy conditions. In addition, it can give insurance providers peace of mind, encouraging them to provide small discounts on premiums during the winter season.
10. Drive an Electric Vehicle
riving a hybrid or electric vehicle (EV) is good for the environment and your wallet. Some electric vehicles come with built-in anti-theft features, which also lower insurance costs. Depending on who you choose are you insurance provider, you can save an average of 10% on insurance premiums.
However, it’s essential to review certain EV-related factors that might affect how much you save, including:
- Vehicle make and model
- Retail prices
- Average repair costs
- Potential battery damage
When choosing an EV to save on insurance premiums, consider a used vehicle, check out reviews on the model you’re eyeing, and equip your car with insurance-friendly features.
Key Advice From MyChoice
- Combining insurance for your home and vehicle is a quick and simple way to get discounts on your policy.
- Choosing the best car to drive in your area that can withstand unpredictable road conditions is a great way to keep your vehicle in shape and insured for lower prices.
- Always compare quotes with as many insurance providers as you can to get the best possible value for a policy that suits your driving habits and vehicle type.