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How Can I Reduce My Car Insurance Rates?

How Can I Reduce My Car Insurance Rates?

Many Canadians are paying far more than they have to on their car insurance. If you’ve received a notice that your premiums are increasing, there are a few things you can do to reduce your insurance rates. Here are just a few of the most effective.

Maintain a Safe Driving Record

The more accidents and tickets you have on your driving record, the higher your premium will be. A number of insurance companies offer discounts for those who have safe driving records, up to 25% off.

Bundle Your Policies

If you have other insurance policies already – home insurance, boat insurance, life insurance – it’s worth asking if they offer discounts for bundling your policies! Most will in order to earn your business.

Choose Your Car Wisely

Certain makes and models of cars cost more to insure because they are higher value and, therefore, more likely to be broken into. Before you make a purchase, do some research into which cars put you at higher risk for theft - and increased premiums. An informed purchase decision is a cost-effective one.

Insure Several Drivers or Vehicles Together

Do you have a number of drivers in your household? If so, you may be able to get discounted rates. The same will apply to the vehicles that you own. If you purchase insurance for a single vehicle you’ll likely pay more than if you were to insure several vehicles with the same insurance company. If you have multiple drivers and vehicles to insure, always ask if they will offer you a bulk rate.

Reconsider Your Payment Schedule

If your insurance plan includes monthly payments, talk to your insurance agent about changing it. Making an annual, one-lump-sum payment can be less costly in the long run. Some providers will provide discounts if you’re able to give them a yearly payment, rather than breaking it up into smaller bits.

Ask For A Higher Deductible

Many policyholders ask to pay a higher deductible because that’s all they have to pay when they make a claim, which means they have a better chance of saving money. If you don’t make claims often, then you can avoid paying the deductible and can save money on your insurance. It’s a clever way to get the best car insurance rate.

Drive Less

Some insurance companies also have mileage thresholds which can impact your premium once you exceed their limit. So the fewer miles you drive in a day, the lower your premiums will be.

Know What Discounts Apply To You

Insurance companies in Ontario offer a range of discounts that apply to specific demographics. Check out the different ones available and see where you can save money. If you’re a student, for instance, you can get a discount for having good grades. The retiree discount can save you 15 percent on your premium. There’s even a discount for people who invest in private parking. Cars that are parked on the street or in public are more likely to be broken into, so if you park in private parking or in a driveway, you could be eligible for a discount.

Improve Your Credit Rating

Your credit rating is often used to determine your insurance premium. If you can increase your credit score you might be able to get a better rate. The quickest way to do this is to pay down debt and pay your bills on time. This includes your monthly credit card payment and utility bills.


Your loyalty means a lot to insurance companies, so some providers may offer long-time discounts to customers. Before signing on, ask if there will be benefits like this down the line. It will help you decide the best car insurance for you.


Where you live affects your car insurance. When you move from one city to another in Ontario, your premiums might go up or down. If you aren’t required to move for work or family, it’s something you should consider before planning any relocation. Where you live in relation to your work is also important. If you’re driving across the city every day, especially through traffic, you will have higher premiums than someone who lives close to their work. Choose a home that is relatively close to your work to lower your insurance rate.

Shop Around

Not all insurance policies are created equal. There could be better rates and premiums out there for you, which is why it’s crucial to shop around. An insurance broker can do all of the leg work for you. As experts in the industry, they know what each insurance provider offers and can help you find the best car insurance rates for your specific needs.

Ready to save big on car insurance? Contact our team at Rowat Insurance and we’ll make sure you get the lowest rates possible.

Rowat Insurance

Insuring Ontario and Quebec since 1955. Trust Rowat Insurance Brokers to look after your home, auto, business and life insurance needs. We always guarantee fast, friendly service and highly competitive premiums. As brokers, we are entirely independent from Insurers and Financial Institutions; we will work with you to analyze and advise on risk, and customize the coverage that is right for you.