With a national increase of 13.2% in personal auto insurance premiums between Q1 2024 and Q1 2025, Canadians are increasingly feeling the pressure of rising insurance costs. Fortunately, there are proactive steps you can take to offset these increases without compromising your protection. By applying the right strategies, you can reduce your premium while keeping the coverage you need.

At OVC Assurance, we understand the challenges Canadian drivers face as premiums rise, and we’re here to help. In this guide, we share proven ways to lower your auto insurance costs in Canada. Keep reading to discover practical solutions that will help you achieve real savings!

12 Key Strategies to Lower Your Auto Insurance Costs in Canada

1. Shop Around and Compare Quotes

Insurance companies offer widely varying rates. Using a comparison platform helps you identify the most competitive auto insurance quote for your needs.

At OVC Assurance, we connect you with more than 20 insurers in a single call. Our independent professionals compare the options for you so you get the best value without having to contact multiple providers yourself.

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2. Increase Your Deductible

Raising your deductible (the amount you pay before insurance kicks in) can significantly reduce your premium. Make sure it still aligns with your budget in case a loss occurs.

3. Bundle Your Insurance Policies

Bundling your auto and home insurance with the same provider often qualifies you for a multi-policy discount. Whether you're insuring a vehicle or property, this approach simplifies renewals and lowers your costs.

With OVC Assurance, you gain access to a broad network of insurers offering competitive bundling options. Our independent advisors assess your profile to ensure your bundled policies are cost-effective and suited to your real needs.

4. Maintain a Clean Driving Record

A driving history with no claims or violations signals low risk to insurers. This can qualify you for ongoing discounts.

5. Take Advantage of Available Discounts

Common discounts include:

• Multi-vehicle plans: insuring several cars under one policy can offer significant savings.

• Loyalty discounts: reductions after several claim-free years.

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6. Review and Adjust Your Coverage

Comprehensive coverage isn’t always necessary for older vehicles. Evaluate your protections with an insurance representative and consider removing add-ons such as roadside assistance if you’re already covered by a credit card or another service.

7. Drive Less

If you drive infrequently—because you take public transit, carpool, or have short commutes—you represent a lower risk to insurers. Ask about low-mileage discounts or usage-based insurance.

8. Choose Your Vehicle Carefully

Some models cost less to insure due to strong safety ratings and low theft risk.

9. Install Anti-Theft Devices

Adding anti-theft systems reduces claim risk. Many insurance companies reward this with additional discounts on your auto insurance premiums.

Devices that can help reduce your premium include:

• Anti-theft systems (e.g., immobilizers, car alarms)

• GPS tracking systems

10. Consider Usage-Based Insurance

Telematics technology monitors your driving (speed, braking, time of day). Safe drivers earn personalized discounts based on their behaviour.

11. Pay Your Premium Annually

Paying your premium in a single annual installment can lower your costs.
It also avoids administrative fees and helps with budgeting.

12. Consult Your Broker or Insurance Agent

At OVC Assurance, we offer personalized advice to help you understand your coverage. Whether it’s policy terminology, liability requirements, or provincial rules, our team ensures your protection aligns with your lifestyle, risk profile, and legal obligations.

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What Factors Influence Auto Insurance Premiums in Canada?

Several key factors affect the amount Canadian drivers pay for auto insurance, and rates can vary significantly depending on the province and insurer. Here’s what insurance companies typically consider:

• Age and driving experience: young or newly licensed drivers (especially under 25) often pay higher premiums due to inexperience and higher perceived risk.

• Driving record: a clean record with no tickets, claims, or accidents helps reduce your premium.

• Vehicle type: make, model, safety features, repair costs, and theft rates all influence insurance costs.

• Usage: how often and how far you drive. High mileage increases risk, while low mileage may qualify you for discounts.

• Postal code: urban areas with more traffic and claims tend to have higher premiums.

• Coverage level: the more extensive your protection (e.g., collision, comprehensive, accident benefits), the higher your premium.

• Deductible amount: a higher deductible often lowers your premium but increases your out-of-pocket cost during a claim.

• Insurance history: coverage gaps or frequent insurer changes can negatively impact your rate.

• Vehicle ownership: leased or financed vehicles usually require more extensive coverage than fully owned vehicles.

• Provincial regulations: premiums vary depending on local insurance laws and systems (e.g., SAAQ in Quebec, MPI in Manitoba).

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Why Are You Probably Paying Too Much?

Many drivers in Quebec overpay for auto insurance due to inadequate protection or outdated policies. Here are common situations where you might be spending more than necessary:

• Collision or comprehensive coverage on an older vehicle with low market value or high repair cost

• Deductible that’s too low, keeping your premium high

• Optional coverage for minor damages (e.g., windshield replacement)

• Paying recurring premiums without shopping for new quotes

• Outdated policy information that doesn’t reflect your current driving record or situation

• No annual review of your coverage with a broker or qualified representative

With OVC Assurance’s support, you can review your policy regularly and adjust it to your current needs—reducing costs without compromising essential protection.

How to Shop for Auto Insurance in Quebec

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OVC Assurance puts you back in control by making your insurance decisions simple, fast, and transparent. Whether you’re shopping for insurance for the first time or reviewing your current policy, our team is here to guide you, explain every option clearly, and help you choose with confidence. No pressure—just clear advice and coverage that fits your needs!

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