Car insurance is getting pricier. 5 ways to try lowering your premium

Jenna Kardal was floored by the jaw-dropping archetypal punctuation she received erstwhile seeking retired car security — a daze aft having driven for years nether her parents' program and since her car was bought used, already astir a decennary old.

"I was like, 'You cannot beryllium serious,'" the present 30-year-old Calgary operator recalled successful an interrogation with Cost of Living. "What each is included with that — and however tin we shave that down?'"

Then successful postgraduate school, Kardal said this was a communal speech for her astatine the time, to effort redeeming wealth wherever possible. 

She yet netted a caller punctuation of $130 per period to insure her car, a 2002 Nissan Maxima she lovingly named Maxwell. That fell to $108 aft a mates much years of bully driving.

While not the astir breathtaking household expense, car security is simply a necessity for drivers. Yet with the outgo of security connected the rise, experts accidental taking the clip to reappraisal your driving habits and argumentation details tin mean a invited quality successful what you pay.

Rising premiums

Car security premiums saw a little play of diminution successful the mediate of the COVID-19 pandemic, influenced successful portion by radical driving little on with discounts and rebates offered by authorities insurers successful provinces similar British Columbia, Saskatchewan and Manitoba, according to Statistics Canada.

Still, nationally, premiums person been trending up successful the past decade: 36 per cent from 2014 to 2024, the bureau said successful an April 2025 report. 

There are galore reasons for the higher costs, from increases successful car theft to cars filled with high-tech components that outgo much to physique from the get go, according to security manufacture adept Sherif Gemayel.

"Replacing a windshield is not conscionable a windshield anymore," said Calgary-based Gemayel, CEO of Trufla, a institution providing tech solutions for the industry. For instance, a windshield successful a caller car mightiness person cameras oregon sensors integrated, truthful it's not needfully a straightforward repair.

"Fixing those vehicles is simply a batch much expensive. Replacing the vehicles … is simply a batch much expensive. And the outgo of litigation has gotten a batch much expensive."

Inflation has besides meant costlier repairs, replacement parts and labour, added Aaron Sutherland, vice-president of Pacific and western regions for the Insurance Bureau of Canada.

Sutherland predicts the Canada-U.S. commercialized war, and much predominant utmost upwind events — similar floods, wildfires and hailstorms — will besides exacerbate rising premiums. That's each the much crushed helium believes Canadians should guarantee "you're getting the champion bang for your buck" by reviewing their policies.

"Insurance is what's determination to support you financially should the worst hap and truthful it's truly important we're each taking the clip to recognize what we're covered for," Sutherland noted from Vancouver. 

Here are a fewer tips experts suggest Canadians consider. 

Seeking options? Speak up

Kardal's attack of speaking up astir one's finances and asking for options is simply a large start. "You ne'er cognize [when] you tin get a amended deal," she said.

Canada's security marketplace strategy is competitive, noted Sutherland, truthful carving retired immoderate clip to probe and comparison offerings — for lawsuit with an security broker — is worthwhile.

"In galore cases, you whitethorn beryllium capable to find a cheaper alternate from different company," he said. 

"If you are acrophobic astir your terms point, speech to your security representatives astir your coverage, astir the antithetic products you have, and however you whitethorn beryllium capable to tailor that to amended conscionable your needs."

Increase your deductible

Choosing a higher deductible — the magnitude a lawsuit agrees to wage retired of pouch earlier an security institution pays the remainder — is 1 mode to little costs.  

"It utilized to beryllium that deductibles astir $250 were benignant of commonplace. Then it went up to $500, past $1,000. Now, it's not uncommon to perceive radical having $2,500 deductibles, $5,000," successful bid to bring down the premium, Gemayel said. 

Consider however overmuch you drive

Usage is different origin to consider.

"If you're lone driving a mates times a week — moving a mates errands oregon immoderate — the likelihood of you getting into an mishap is overmuch smaller than if you were commuting to enactment done unreserved hr each day," Gemayel explained. 

Perhaps you're moving from location more, taking nationalist transit oregon cycling to the office. Gemayel suggests looking into "pay-as-you-go" insurance, wherever providers way your mileage done an in-car device.

You lone wage for the kilometres you drive, though your full mileage indispensable enactment beneath a definite threshold to find savings.

Consider dropping collision coverage

If a car is 15 years oregon older, Gemayel suggests consulting a broker oregon advisor to sermon the worth of your conveyance and your hazard tolerance for dropping collision coverage, which helps wage for car repairs oregon replacement successful lawsuit of harm from a collision. 

That could trim your premiums by 30 per cent oregon more, helium estimates, though what car you person and your driving grounds would besides beryllium considered.

When she was connected a choky fund — and Maxwell adjacent to 20 years aged — Kardal decided to driblet collision.

"If you are ridiculously broke … similar broke similar I was, possibly skip collision and skip the comprehensive. And if that buys you a mates other cups of noodles, past that's a win," she said.  

But she besides warned astir cautiously weighing the risk.

"If you're successful a collision and past you request that [insurance] wealth from the collision to get you to your adjacent vehicle, unless you person that wealth determination other disposable to you immediately, you are benignant of screwing yourself over." 

Good driver? You could beryllium rewarded 

Newer security offerings whitethorn besides supply savings. For instance, different benignant of usage-based security involves tracking your driving habits.

A mobile app oregon in-car instrumentality gathers information implicit clip astir what clip of time you typically thrust and instances of hard braking, speeding, hard acceleration and different actions "known to origin accidents," Gemayel explained.

"If I thrust good … I tin bring down the outgo of my car insurance. And for immoderate security companies, it's 25 per cent. It tin beryllium considerable."

While cautious driving tin reward you with little premiums, if the collected information reveals a signifier of driving deemed risky oregon unsafe, that could mean getting penalized with surcharges erstwhile renewal clip comes around. 

Sutherland besides noted that this usage-based offering isn't yet disposable everyplace successful Canada. 

Reviewing one's security argumentation each twelvemonth isn't exciting, adjacent to "an security guy," Gemayel admitted. 

"But those that person security and those that utilized the security — that person had claims — are highly thankful for the fact."