List of auto insurance discounts in Canada
There are many different types of car insurance discounts that can help you reduce your premiums. They typically fall into one of four broader categories - policy, driving, vehicle, and individual. Some you may qualify for, and others you may not. It depends on your specific situation. Here is a list of the top discounts available :
Policy discounts
Policy discounts are savings based on your coverage needs. You can save more when you combine policies, are loyal to an insurer, or choose preferred payment options.
Combine car + home
When you bundle your auto and home insurance with
the same company, you can get discounts of up to 20% or more, depending on the insurer.
- Save up to 20% on auto and 50% on home coverage
Multi-vehicle
Discounts are available for family members who live in the same household but drive separate vehicles. You can also save if you have more than one vehicle.
Insuring multiple vehicles with the same provider will lower payments.
Payment options
Did you know you can save money just by choosing how you pay your premiums? Many providers will lower your costs if you opt for the pay in full discount or auto payment option.
- Pay for the full year in a lump sum – save up to 8%
- Automatic payments by Electronic Fund Transfer – up to 2%
- Pay on time consistently – up to 15%
Loyalty and renewals
Loyalty gets rewarded. Many insurers offer discounts for loyal customers who renew their policies each year. The longer you have coverage with the same company, the lower the payment.
- 1-5 years – save up to 5%
- 6 years – save up to 6%
- 7 years – save up to 7%
- 8 years – save up to 8%
- 9 years – save up to 9%
- 10+ years – save up to 10%
Higher deductible
Your deductible amount affects your premiums. Increasing it from $500 to $1,000 or more can help you save. Simply understanding how your insurance deductible works can help you reduce your payments.
Driving discounts
How you drive can help you save. Staying accident-free and driving less pays. Insurers offer a number of programs to help good drivers lower costs.
Good driving rewards
Staying accident—and claims-free is one of the best ways to keep rates down. You’ll not only qualify for a discount but also won't see rate increases because of a collision when your coverage renews.
Telematics discount
Good drivers can save significantly when enrolled in a usage-based insurance or telematics program.
You could save 5% to 10% by enrolling in the programs. Driving habits get monitored, and good driving habits get rewarded. The safer you drive, the more you’ll save.
Low kilometre discount
You can save money simply by driving less. Make sure to inform your insurer if you don’t commute to work or have a short drive. Using your vehicle solely for pleasure driving can drive down costs. Ask about pay-as-you-go programs. For example, CAA MyPace rewards you for driving less.
Vehicle discounts
The car you drive can actually help you save on insurance. The make, model, and safety features will affect your premiums.
New vehicle
A new car looks great, but purchasing a new vehicle less than three years old can help you pay less. These vehicles typically have better safety features and higher safety ratings.
Anti-theft device
The harder your vehicle is to steal, the better. If you have an after-market anti-theft device installed in your vehicle, you could have additional savings ranging from :
- After Factory – save up to 5%
- Satellite – save up to 15%
Winter tires
It’s proven that using winter tires is safer. Put them on your car and contact your insurer to save.
Private parking
You can get a discount when you park your vehicle in a private garage or driveway. If your parking situation changes, make sure to notify your insurer.
Green or eco-friendly vehicle
Driving a hybrid car or electric vehicle saves you money on gas and insurance. If you switch to an electric vehicle, ask your insurer about the green discount.
Individual discounts
Retiree and seniors
Experience pays off! If you are retired or a senior, you'll qualify. Even over 50 drivers can get a discount or savings.
Drivers training
New and young drivers who take a government-approved drivers training course can receive additional cost reductions. Before signing up, make sure your driving school offers MTO-approved driver training courses.
Graduated licensing
You’ll save more as you gain more experience behind the wheel. Insurers reduce rates as drivers graduate through each level of the graduated licensing program. The quicker you get your full licence, the quicker your premiums will be lowered.
- Graduate from G1 to G2 - save up to 10%
- Graduate from G2 to G – save up to 10%
Good student
Insurers offer organizational or group discount rates. This can include alumni, union members, professional associations, non-profits, and companies. Check with your insurer to see if you are part of a qualifying organization.
