How to save on car insurance in Canada

Passing a driver training course won’t affect your premiums in all provinces, but it’s something that is recognized in some and can result in a discount being taken off your premium. This tip is especially helpful for teens and young drivers.

Yes, accidents happen, but you should always drive carefully and obey the rules of the road. That includes wearing your seat belt, not driving impaired by drugs or alcohol, not speeding and not using your cell phone. The longer you keep your driving record clean, the better. For example, in BC, you can get a discount for every year you are claims-free, up to 43% off!

While it makes sense for someone with a newer car to have collision and comprehensive insurance, if your vehicle isn't worth much, it may not make sense for you. Unless collision insurance is a condition of your loan or lease, it may be worth dropping the excess coverage. Always carry adequate third-party liability coverage, you don't want to be underinsured, either.

If you don’t want to pay a lot for car insurance, a good rule of thumb is not buying anything brand new and never owning a sports/luxury vehicle. Some cars also have higher theft rates than others, which is one factor that is used to calculate your car insurance rates. Before you buy a vehicle, test out the Insurance Bureau of Canada’s “How Cars Measure Up” tool, which compares cars in terms of their relative insurance costs and safety features.

If you’re comparing car insurance rates from multiple insurance companies, make sure you are being quoted for the same coverage across the board. For example, is your third-party liability set at $1 or $2 million? Are both collision and comprehensive on all the quoted rates? Then compare what types of losses are covered by each policy, how their claims process works, and what other options, like accident forgiveness, might be available. Sometimes, the best price doesn’t equal the best product.