The premium on your Ontario mandatory car insurance can represent a substantial portion of your household budget. However, just because it’s mandatory doesn’t mean you can’t find ways to reduce your premium by taking advantage of the car insurance discounts in Ontario you are entitled to receive. Here we will explore some of the ways that you can reduce your auto insurance premium.
Car Insurance Discounts in Ontario Frequently Asked Questions
Do car insurance companies offer discounts?
Every car insurance company offers a variety of discounts to their customers. Every policy is unique based on the vehicle you drive, your driving record and where you keep your car. Some of the most common car insurance discounts in Ontario are:
Loyalty credits – These credits reward drivers for being long-term customers of an insurance company. The credits can increase depending on the insurer and range from five to ten percent. How long you have been with your previous insurance company plays a role and discounts begin becoming available once you have been with the same company for at least 3 years.
Driver training – New drivers who have successfully completed a government-registered driving course can save up to 10% off their premiums.
Senior discounts – Retired drivers and those over the age of 50 may be eligible for a discount of up to 5%.
New vehicle discounts – Buying a car that’s less than three years old may net you additional savings as new safety features become available in new models.
Anti-theft devices – Immobilizers, alarms and other anti-theft devices make it more difficult to steal your car. As a reward, you may qualify for an extra discount depending on the level of protection.
Students away from home – If your young driver goes away to school more than 100 kilometres from your home, you might be eligible for savings by classifying them as an occasional driver on your policy. This could be up to 50% cheaper than the additional cost of insuring a secondary driver who shares your address.
Winter tires – Swapping out your all-season tires for government-approved winter tires can save you an additional 5%.
Green car – Some companies will reward your climate-friendly purchase of an electric or hybrid vehicle with an additional discount.
Am I entitled to a discount on my insurance?
In addition to the credits outlined above, your insurance company probably offers some premium reductions that are focused on the number of policies you have and your claims record. Some of these credits include:
Claims free – If you haven’t filed a claim for a few years, you may be eligible for a claims-free credit from your insurer.
Multi-car – If you have more than one vehicle in your household, it makes sense to add them all to the same insurance policy. You can save as much as 15%.
Combine Home & Auto – Insuring your house, condo or rental with the same company as your auto insurance can also reap rewards on both policies. You can save up to 20% on your car policy and up to 25% on your home insurance.
How to lower car insurance in Ontario?
Credits aren’t the only way to lower car insurance in Ontario. You can also save money by changing some of your coverage details. Some of the most common ways to reduce your premium this way include:
Deductibles – Raising your deductible will decrease your premium. The amount of savings is directly related to the amount of your new deductible, with higher deductibles saving you the most. However, a higher deductible also means you need to pay more in the event of a claim. Learn more about how deductibles work.
Coverage limits – Depending on your circumstances, you may be able to change your policy limits or eliminate some optional coverages. A good example of this would be removing comprehensive or collision coverage if your vehicle has a low replacement cost.
Payment plan – Most companies charge service fees if you decide to pay for your insurance using a monthly payment plan. By paying your premium all at once annually, you can save a substantial amount of money each year.
How else can I get a percentage off my car insurance?
There’s a high-tech option available for getting a car insurance discount in Ontario, known as telematics or usage-based discounts.
Usage-based discounts – Some companies offer discounts if you enrol in their usage-based insurance program. These programs use a device or an app on your phone to track your driving behaviour. While each program works differently, one of aha insurance’s partners, Aviva, has recently released a program that provides you with a 10% discount on sign-up and another 20% discount if you drive safely. Drivers should know that driving unsafely can result in your premium increasing by up to 5%.
There is a myriad of car insurance discounts available in Ontario. The best way to ensure that you are receiving all that you are entitled to is to call your insurance professional, who can review your personal circumstances and apply all available discounts and credits.
