14 Ways To Get Cheap Car Insurance

Written and Edited By

moneyGenius Team

Last updated: Jun 26, 2020

Verified for accuracy

When it comes to car insurance…

Are you paying more than you should?

Many people know the obvious ways to save, like shopping around for the best price or comparing quotes online. But…

Did you know you could save money by using a tracking device or parking your vehicle in a private garage?

Are you missing important insurance coverage? Make sure you’re covered – here are 4 essential types of insurance in Canada

Want to get the cheapest car insurance rates?

Here are 14 ideas to get you started:

Table Of Contents

1. Get cheap car insurance by shortening your commute

You can likely lower your auto insurance costs simply by driving less.

When you drive to and from work, your rates will likely be higher than if you drove less and for leisure purposes only.

How do you drive less? You could:

carpool,
park your car at a bus stop, and take the bus for the rest of the trip, or
use rapid transit if you live in a large city.

I drive to the train station and then take the train to work, which means less wear and tear on the vehicle. And lower insurance costs, because my total driving distance each day is less than 3 kilometres.

Taking it a step further, if you could find a way to get to work without using your vehicle your rates would be lowered. The usage of the vehicle would be changed from commuting to pleasure, which means less kilometres and (usually) lower rates.

Related: 6 Alternatives to Owning a Car

2. Winter tires can help lower auto insurance costs

Winter tires are mandatory in some provinces but not in others. For those who aren’t legally required to have winter tires on their vehicle, you may still want to consider investing in them.

The best deals on winter tires are usually found using online classifieds like Kijiji. I buy my winter tires slightly used on Kijiji and save hundreds of dollars.

I also have them mounted on a separate set of rims so that I can quickly and easily change them myself when the seasons change.

Some insurers offer discounts for vehicles that use winter tires, so you’ll want to check to see if the initial cost is worth the savings.

3. Clean driving record = better car insurance rates

This one is fairly simple – drivers with a clean driving record (and more experience) generally pay the cheapest car insurance rates.

If you do get a speeding/distracted driving ticket and feel that you’re not at fault, you’ll want to make sure you dispute the ticket through the court system.

Parking and photo radar (unmanned photo radar stations without an officer present) tickets don’t count against your driving record. But speeding and distracted driving tickets do.

So why not save money on car insurance by driving responsibly? (Yes, that means following all speed limit signs and not texting & driving.)

4. Increase the length of your driving record

The longer your driving record with no accidents, the more likely you’ll be able to get a cheap car insurance rate.

A driver who’s 45 years old with over 20 years of driving experience will most likely get a lower rate than a 20 year old with less than 5 years’ experience.

Insurance companies want to see that you have a long record of driving responsibly because it reduces the chances of you getting into an accident they’ll have to pay for.

If you live with your parents or go to school during the fall/winter, you may want to consider being added as a secondary driver to your parents’ policy.

The years of being considered a secondary driver generally count towards years of driving experience, and once you graduate from school and get a policy of your own, you’ll have more years of experience and will likely get a cheaper car insurance rate.

Related: Desjardins Car Insurance Review: Limited Availability And Higher Premiums

5. Volunteer to use a tracking device to save on car insurance

Car insurance companies have started offering tracking devices as a way to track driving behaviour and reward good driving habits.

The device itself goes into the car and monitors speeding, braking, the time of day the vehicle is driven, and the frequency.

A bit controversial…

Although it doesn’t monitor location, there has been some controversy about the ethics of a device that tracks insured vehicles.

The basic premise is that the device is installed in the vehicle so that the insured driver can show they’re a responsible driver – and receives cheap car insurance rates for volunteering to use the device.

The better the driving habits, the higher the discount. Allstate Insurance offers this device in Alberta and pledges that as a worst case scenario, there’s no discount given. The highest discount they claim to offer is 30%.

Personally I wouldn’t be willing to use a device like this because I wouldn’t be comfortable with my driving being monitored, but some may be willing to use it depending on the savings available.

6. Pick the right car

When choosing a vehicle to purchase, many people don’t consider the costs of insurance – but they should.

Insurance costs can vary widely between different vehicles so it’s important to consider what your insurance costs will be when choosing a car.

In general, new vehicles and more expensive cars cost more to insure. Other items that may drive insurance rates higher are:

modifications done to the vehicle,
luxury models,
sport editions, and
modifications to increase horsepower.

Insurance rates for different vehicles are driven by multiple factors, but before buying a vehicle it wouldn’t hurt to get a free quote on the insurance so that you can factor that into the total cost.

I drive a Toyota Corolla and pay lower insurance rates than a coworker who drives a Honda Civic – this is probably because Civics have significantly higher theft rates.

Buying a used, reasonably priced, economical vehicle will keep your insurance costs reasonable.

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7. Park at home to save money on car insurance

You can save money on your vehicle’s insurance while it’s parked at home.

If you park the vehicle in a private garage or driveway you’ll probably get a cheaper car insurance rate than if you park it on the street. This is because insurance companies use statistics to determine rates, and statistics would say a car is less likely to be stolen/vandalized while parked in a garage than on the street.

You may also get a lower rate if you use an anti-theft device.

Related: 10 Ways To Save On Home Insurance

8. Get a car and house insurance bundle discount

You can combine your car insurance policy with a home insurance policy to get a “bundle” discount.

This is one of the easiest ways to save money, plus helps consolidate your payments in one place.

13. Make lump sum car insurance payments

If possible, pay the annual cost in one lump sum instead of monthly installment.

The monthly payments usually have an admin fee attached, which ends up making it more expensive if you add them all up.

14. Use your credit card to make auto insurance payments

Pay your insurance fees with your credit card in order to reap the rewards.

That means every time you make a payment, you could be earning cash back or travel rewards.

FAQ

What is car insurance?

Car insurance will cover you for expenses that may occur to you and your car, whether it’s from an accident, theft, or vandalism. It’s actually mandatory to have some kind of car insurance in Canada, so if you’re planning to buy a car soon, you’ll have to figure out what coverage you want. Click here to learn more about the basics of car insurance.

What’s the easiest way to save on car insurance?

One of the easiest ways to save money on car insurance is by getting a bundle with your other insurance policies, most likely home insurance. That way both payments are consolidated in one place.

How do I get the cheapest car insurance rates?

Getting the cheapest car insurance rates starts with finding the right company, but you can bring your car insurance costs down even further by following these other tips.

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Comments

Catch |January 2, 2018

Great article. Here are my two tips... Make it a habit to recheck your insurance rates every few years to insure you are not overpaying. Get quotes from 2-3 competitors and compare policies and rates. You may find that your current company may match or give you an even better rate to keep you as a customer. Or it might be more worthwhile to switch. Also, when you get a quote, make it a point to to tell them where you work and where you have gone to school or any affiliations/memberships such as CAA. I got my best rate as an alumni from the university I graduated from and reduced significantly reduced my annual premium for both my home and auto insurance.

Stephen Weyman |January 8, 2018

Thanks for sharing Catch!

Linnea Johnson |June 14, 2017

Yes, there are end less options for car owner to get their car insurance in a slightly cheaper margin.If you drive less , it saves your car insurance policy as you don't have to go for a regular maintenance check up. Secondly, if you have parked car in your home instead of any other place, then you are free form any deduction and also, you can save money by picking the right vehicle for instance, a branded car have higher expensive cost compare to existing car .Car insurance often goes higher when you have branded car which has insurance covered . The more you drive, then you need to have higher maintenance cost .I have gone through the entire article and i am quite encouraged to save money as i felt it is welcome option for car owner to abide by the car insurance tips. Really nice blog to help car owner budget and expenses .

Alexis @FITnancials |March 21, 2017

I made a quick call to my insurance agent and asked if there was anything I could eliminate off my insurance, and I was able to eliminate $20 per month for something that wasn't really necessary. I wish I would've known about it for the very beginning!

RedNuker |March 19, 2017

My Insurance broker recommended a tracking device when I made changes to my policy because of a new car purchase. He could not answer my questions about who sees the data, where are they stored and for how long, and what steps are in place to ensure privacy. In this day and age of identity theft, I declined that offer. As for the snow tire discount, I have required snow tires for only two days this winter. The purchase cost (and summer storage fee) of the tires will not balance out the paltry discount I received. Perhaps in 15 years, it will given my driving patterns.

Carol Moore |March 16, 2017

thanks so much for the info! I am now going to check out "parking in garage" and "tracking device" discounts!

Collin Lewis |March 16, 2017

Hi Steven, Thanks a lot for this wonderful tips for car insurance. It was one I was waiting for. While looking around for better car insurance, I came along a discount for being member of any association. Can you check which of these association is good to join. How about discount for couples. Going on the same policy will that be better. Thanks in advance.

Apukwa |March 14, 2017

Indeed, I would certainly add: 1) (BC Specific) Shop around! ICBC is only required for your basic car insurance, there are a number of other insurers that can top up ICBC's liability as well as add comprehensive insurance with every one almost always at better rates than ICBC's optional coverage. BCAA, belairdirect, etc. 2) If you work for a big company ask if they have an employee group policy discount with an insurer. In Ontario I saved at least 30% over the lowest available quoted price going with my company's group insurer in all but one year 3) Finally, *shop around every year*. Some years your existing policy may be the cheapest, but often others undercut! If you don't investigate at least once a year you will miss out on opportunities to save. Make sure to check online mass quote sources (like Kanetix) but don't forget to reach out to brokers and sites not covered by Kanetix as they may have better rates (esp. group policy rates).

Mrs. Picky Pincher |March 14, 2017

I saved on car insurance by calling up my insurer and straight-up asking for discounts. They told me what I qualified for and how I could get the discounts. Now I have cheap insurance for the next few years for taking defensive driving. Woop woop!

Tom |March 14, 2017

Buying used tires off kijiji should only be undertaken by an extremely knowlegeable person. Not only can there be hidden defects, there is quite a bit of expense to tire changeovers. And the price of new tires is probably the cheapest preventative "insurance" you can buy.

Rob Hutton |March 14, 2017

Very good Article...... one thing i always recommend is call a broker. I used the online quoting tool and it is providing a price $650 higher than what is available through an independent broker in my area. Independent brokers have access to multiple markets and provide the expertise a Client needs. The current insurance market is very volatile and rates can range by thousands of dollars from one company to the next for the same coverage. This makes it very important to have a large sample size of comparable rates to insure you are getting the best price. Another little trick depending on the cost of your windshield is to delete glass coverage. If your windshield can be replaced for $300-$400 it is probably worth it. For those of you who have a car with heated wiper spots rain censors etc this is not an option....... some of those windshields can cost in the range of $2000. Keep the great articles coming.