How to Get Cheap Car Insurance in 2024

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Did you know that, on average, British Columbia has the highest insurance premiums per year? Ontario comes second, and that’s why you may be looking for ways on how to get cheap car insurance in Toronto.

Well, regardless of where you reside in Canada, it’s perfectly ok to look for ways to get cheaper car insurance. Today, we will present 10 tips that you can apply:

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1. Opt for a user-based insurance program

Abbreviated as UBI, it’s a scheme where you pay-as-you-drive. The insurance company will install a telematic device that collects and reports data on your driving habits, such as how fast you accelerate or slow down, the distance you cover daily, and when you drive.

Telematic insurance was rolled out in Canada in 2013, and many private insurance companies have adopted it. The scheme may be beneficial if you drive for less than 10,000 kilometers annually.

2. Bundle your insurance policies to enjoy savings and discounts

Some private insurers promise up to 15% savings on your total premiums when you bundle your insurance policies, such as auto and home insurance.  Bundles may also include other coverages such as travel coverage, boat coverage, cabin coverage, and more. In addition to savings,  it’s also convenient because you pay one bill.

3. Compare price quotes from more than one insurer

Looking for a way to get cheap car insurance? Avoid the lure of not conducting your own research in favor of insurance recommendations and advice from your friends or family.

Comparing rates from auto insurance providers may provide significant savings. Shopping around may be a little tricky if you are in a province with a government-run insurance plan, such as British Columbia, Saskatchewan, and Manitoba. But that does not mean that government-run programs are always cheaper, as is the case in British Columbia.

So, if you live in a high competition province, take advantage of the private market and shop for affordable rates.  You can make your work easier by connecting with an advisor, like Surex. They can be found here.

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4. Consider your car selection.

The first and foremost thing to remember is that insurance companies will determine the premiums to charge for collision or comprehensive insurance based on the car’s value. They will also consider other risk factors such as the car’s safety rating and its theft rate.

The Honda CRV tends to be the most stolen car in Canada, but it’s also relatively cheap to insure. The cheapest cars to insure based on value include Nissan Micra, Mitsubishi Mirage, Chevrolet Spark LS, Mazda 3, and the Kia Rio 5-door.  Basically, any car that is under $18,000 will not attract high insurance premiums. But you can also vet cars based on their safety rating.

5. Consider customer loyalty plans

Car insurance companies are always on the lookout to increase their customer satisfaction and have more people renewing their policies each subsequent year. Behavior such as renewing your policy with the same insurer for two or three years may attract a good discount.

6. Eliminate gaps in your insurance history

It’s important to ward off gaps in your insurance history. A gap may exist when you have canceled your car insurance because you’re not driving or have disposed of your car.  Insurance companies may view customers with gaps as more of a risk and charge higher premiums.

7. Maintain a good driving history

Your driving record affects your car insurance, and a spot-free record means that you’ll enjoy lower premiums but if you have a history of traffic violations and claims, it may mean paying higher premiums.

Traffic tickets in Canada stay on the record for about 3 years. When insurance companies pull your driving record, they can either request the 3-year or 5-year driver’s record report. On Autoplus, a private database on insurance history, the insurance company may access more extensive information, including claims made against you in the past, accident reports, your long term insurance history, and information about non-payment.

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8. Get coverage that really matters

Most Canadians carry about 1$ million or more in third-party liability coverage. It’s the amount the insurance company can cover you for damages caused when you’re at fault. It’s mandatory across Canada. You may choose not to pay for the standard cover and instead get the bare minimum, which tends to be $200,000 in Ontario. But experts advise that this is not often enough and that it’s better to get the highest amount of coverage you can receive for your buck. It’s always important to consider if the damage costs will exceed your coverage.

You can also consider the viability of paying for other insurance types beyond what’s mandated by law. For instance, in Ontario, you must have third-party, statutory accident benefits, direct compensation property damage insurance,  and uninsured automobile insurance. Optional insurance types include comprehensive and collision insurance.

9. Multi-car insurance discount for the second car

Most insurance companies also provide discounts if you choose to insure more than one car with the same company. It’s recommended for people with two cars, for instance, a daily driver and an RV. The plan also suits families where the primary drivers have similar driving needs.

  • Consider paying-in-full versus monthly payments

You can save up to 10%  if you choose to clear your outstanding premiums when you renew your policy. Six-month payment plans also attract discounts.

Bottom line

Some of the key ways on how to get cheap full coverage car insurance include comparing insurance quotes, bundling up your insurance plans, opting for UBI, and choosing an affordable car.