10 Ways to Lower Your Auto Insurance Premium in 2025
Auto insurance in Ontario is one of the most expensive in Canada — and most drivers are paying more than they need to, because they don’t know which levers actually matter. Here are 10 strategies that genuinely move the needle, ordered roughly by impact.
The 10 strategies
Bundle home (or condo or tenant) insurance with your auto policy
This is the single biggest lever for most drivers. Carriers typically discount auto by 10-25% when you also place home/condo/tenant with them. Even tenant insurance at $20/month can unlock a meaningful auto bundle discount, more than paying for itself.
Enroll in a telematics program if you’re a safe driver
Programs like Intact’s “my Drive,” Aviva’s “Aviva Journey,” or CAA’s “MyPace” track your driving and reward safe habits with discounts of 10-30%. The catch: bad driving (hard braking, late-night driving, speeding) can also raise your premium with some programs. If you’re a calm driver who doesn’t commute at 2am, telematics is almost free money.
Increase your deductible
Going from a $500 to a $1,000 collision/comprehensive deductible typically saves 5-15% on premium. The trade-off: you pay more out-of-pocket if you have a claim. Worth doing if you have $1,000+ in emergency savings and you’ve been claims-free for years.
Audit every discount you might qualify for
Discounts exist for: winter tires, alumni status (some universities), professional designations (PEng, CPA, MD), being claims-free for 3-6+ years, paying annually instead of monthly, electronic documents, group insurance through your employer, and more. Most aren’t applied automatically — you have to ask.
Shop the market every 2-3 years
Carriers’ pricing models drift constantly. The carrier that was cheapest for your profile three years ago is rarely cheapest today. A broker can re-shop your file across 30+ carriers in a couple of business days. Don’t rely on loyalty discounts to keep you competitive — they almost never beat what a fresh quote at a different carrier delivers.
Drop unnecessary coverages on older vehicles
For vehicles worth less than ~$5,000-7,000, comprehensive and collision coverage may not be worth the premium. Pay attention to the actual cash value the carrier would pay you on a total loss versus what you’re paying annually. Sometimes liability + accident benefits only is the right call.
Pay annually instead of monthly
Most carriers add a small surcharge (typically 1-3%) for monthly payments. If you can pay annually, you save the surcharge.
Reduce annual mileage if accurate
If you drive significantly less than you used to (work-from-home, retirement, second car), update your declared annual mileage. Some carriers offer low-mileage discounts. Don’t lie about it — but make sure your declared mileage matches reality.
Add a second car or driver to spread risk
Adding a second low-risk driver (like a spouse) to a policy can sometimes reduce your overall premium because of multi-driver discounts. Counter-intuitive, but worth checking.
Maintain your driving record
The longest-term lever. Tickets and at-fault accidents follow you for 3-6 years depending on the carrier. Defensive driving courses can also unlock small discounts (5-10%) and refresh insurer goodwill after a ticket.
What doesn’t actually help
Two things people often try that rarely work:
- Lowering your liability limit below $2,000,000. The savings are minimal and you’re exposed to a catastrophic out-of-pocket cost if you cause a serious injury. Don’t do this.
- Switching for a tiny short-term discount. If a competitor offers $30 off but you’d lose your accident-forgiveness or claims-free history, the math usually doesn’t work over multi-year horizons.
The bottom line
Most drivers can find 15-30% in savings by combining 2-3 of these strategies. The biggest wins are bundling, telematics, and re-shopping. If you haven’t done a market re-shop in the past two years, start there.
Want me to run your auto profile through 30+ carriers and show you which combination of these strategies has the biggest impact on your specific premium? Send me your current policy declarations and I’ll come back with options within one business day.