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8 tips to lower your car insurance premium

April 13, 2023

Do you know all the different factors that influence the cost of your auto insurance? A little bit of knowledge can go a long way in helping you reduce your premium. Here are our tips.

1. Update your policy regularly

Has working from home changed your driving habits? Maybe someone else is now the principal driver, or you're moving? It might be time to change the names on your policy or update your address. Making sure your information is current is key.

Take a few minutes to contact your insurance company and make sure your coverage meets your needs and profile.

Short on time? If you're comfortable with digital solutions, online services can save you precious minutes.

2. Insure all your vehicles on the same policy

Insuring all your vehicles on the same policy can result in a significant discount. If you own another vehicle like a second car, an RV, a scooter, a snowmobile, or even a boat, you can save money with a multi-vehicle discount from your insurance company.

3. Bundle your home and auto insurance

Having home and auto insurance with the same insurance company will make it easier to manage your policies, but that's not the only benefit. You could also get a discount on your premium by combining the 2 types of insurance.

Plus, you'll pay just one deductible if something happens and both your vehicle and home are damaged. 

4.  Increase your deductible

When shopping for a car, remember to think about insurance costs, which vary by model.

A big reason for these differences is that some models are just more popular with thieves, such as SUVs, 4-wheel-drive vehicles (4x4s), pickup trucks and luxury cars.2 Once you've narrowed down your choices, request a quote for the models you're thinking about. You can even get quotes online to quickly compare premiums and see which one will be cheaper to insure. This will help you get the facts and create a realistic budget.

5. Review coverage on older vehicles

If your car is more than 10 years old, you could reduce your coverage to save on your premium by foregoing full-coverage insurance and only keeping the mandatory liability insurance.

Just remember that liability insurance only covers damage caused to others. That means you'll have to pay the full cost of repairs if you have an at-fault accident or if your car is vandalized.

Before making a decision, talk it over with your insurance provider so you fully understand what would happen if you have a car accident.

6. Sign up for a telematics program

Some insurance companies offer telematics programs so clients can get personalized premiums based on their driving habits. This type of program evaluates your driving habits by checking certain factors (like speed or braking) and assigns you a score. These programs can give you more control over your car insurance premium. Safe driving and good driving habits can save you money.

7. Drive safely

Driving safely is a good way to avoid a loss, but it can also help you save on your premiums. There's more to good driving than obeying the speed limit. For your safety and the safety of others, you need to be aware of what's going on around you at all times and avoid distractions. Did you know that texting while driving is one of the leading causes of accidents?1

Driving safely can help you avoid demerit points from an offence, which would cause your insurance premium to go up.

8. Choose a vehicle that's less popular with thieves

The higher your deductible, the lower your premium. Just remember that you need to be able to pay the deductible in the event of a claim, so think twice before increasing your deductible from $500 to $1,000, for example.

Contact your insurance company to find out the different scenarios. Depending on your profile and policy, you may not save as much as you expect. Talk to your insurance agent for advice that fits your needs.

1 SAAQ, Résultats de 2007 à 2015 de l’enquête sur la distraction au volant et le port de la ceinture de sécurité, [Online], 2016. (In French only)

2 INSURANCE BUREAU OF CANADA, "Top 10 Stolen Vehicles" [Online], 2022.