While many expenses that come with car ownership—like registration fees, fuel and repairs—are out of your control, one cost you can save on is car insurance.
One of the ways to reduce your car insurance bill is by getting discounts. There are more than a dozen common car insurance discounts, you might not realize that you’re already eligible for some of them. That said, you have to proactively ask your car insurance agent for a review of discounts to make sure you’re getting all the savings you qualify for.
Types of Car Insurance Discounts
We looked at savings offered by a cross-section of Canada’s largest auto insurance companies to find what discounts are commonly available. Of course, you may find other discounts from your own insurance company.
Multi-policy discount
A multi-policy discount often applies when you buy car insurance alongside other policies from the same company. It’s also referred to as “multi-line discount” and commonly known to as “bundling.” Bundling car insurance and home insurance is usually one of the biggest discounts you can score, often offering between 5% to 25% off—and sometimes more. But if you’re not a homeowner, don’t worry, as you can typically bundle car insurance with other insurance such as condo, renters, motorcycle, boat, RV and life insurance.
For example, a home and auto insurance bundle with Intact Insurance will save you up to 18% off your car insurance premium.
Keep in mind this is the auto policy portion of the discount. Depending on the company, you may also get a bundling discount on your other policy (home, condo or renters) as well. That same Intact bundle, for example, offers up to 5% on your home insurance.
Multi-car discount
You can usually grab this discount if you insure more than one car with the same insurance company. Typical discounts advertised are up to 8% to 25%. For example, drivers with Belairdirect could save up to 15% on auto insurance with the multi-vehicle discount.
Usage-based insurance program discount
Your insurance company might offer usage-based insurance (UBI), also known as telematics, which adjusts insurance rates based on how often, when and how well you drive. Insurance companies market this as a way to get a personalized premium. Data is typically collected collected from a smartphone app. Most UBI programs offer a discount for enrolling (between 5% to 10%) and then a discount based on your actual driving habits. The discount is typically applied at policy renewal time.
For example, with the CAA Connect UBI, drivers will receive a 5% enrolment discount and can save up to 15% on their premium after one year. Behaviours that will maximize this discount include driving less than 12,000 km per year, not speeding and not driving between 12:00 a.m and 4:00 a.m.
Drivers who enrol with the Ajusto telematics program with Desjardins car insurance get an automatic 10% discount on your car insurance for the first six months. After six months and at least 1,000 km of driving, drivers get a score out of 100 based on driving behaviours and habits, including speed, braking, accelerations and distractions, as well as distance and time of day driving. Scores of 76 and higher could lower premiums by 10% to 25%, while scores of 61 to 75 lower premium by 1% to 9%. If you get a score of 60, no adjustment is made. However, scores below 60 could increase your premium by up to 20%.
Vehicle safety discounts
If your car has safety equipment like anti-lock brakes, air bags and daytime running lights, you may get a discount. For example, PC Insurance offers an autonomous emergency braking system discount for cars fitted with this safety feature.
Online quote discount
Some car insurance companies will offer a discount if you get an online quote and sign up for a policy. This can range from 4% to 12%. For example, TD Insurance offers a 10% discount when you quote and buy car insurance online.
Anti-theft device discount
Depending on the insurance company, you may be able to get anti-theft discounts for both factory installed and after-market installed devices. For example, Allstate Insurance offers a discount to drivers in Quebec with vehicles equipped with an anti-theft tracking device or vehicle marking.
Here are a few types of anti-theft devices that can help you recover a stolen car and potentially get you a discount:
- GPS based systems: Some cars are equipped with services like OnStar that utilize GPS to help locate the stolen vehicle. Some systems, like the OnStar “Remote Ignition Block,” can stop a car thief from restarting your vehicle.
- Stolen vehicle recovery systems: These types of systems, like Hyundai’s Blue Link, help law enforcement track and recover your stolen car and can even immobilize the engine until it’s been recovered.
- VIN etching: This is a permanent engraving of the vehicle identification number (VIN) on a car’s windshield and windows. It’s used as a deterrent against car thieves who would have to remove and replace VIN-etched glass before selling your car.
Good driver discount
Car insurance companies love good drivers and often reward them with savings in the form of conviction-free discounts or claims-free discount. A car insurance company will typically require you to be incident-free for a certain amount of time, typically three years, but the discounts can be substantial. TD Insurance offers a Driver’s Excellence discount if you maintain a clean claims record for 10 or more years.
Winter tires discount
Snow and ice can make driving conditions much worse and increase the risk of an accident exponentially. That’s why insurance providers in Ontario offer a provincially-mandated winter tire discount of between 2% and 5% for drivers who keep four winter tires on their cars for a specified period of time. For example, Aviva Insurance requires tires be installed from December 1 to March 31, while Gore Mutual requires winter tires from November 1 to April 1.
Good student discount
If your student driver is under the age of 25, enrolled full-time at a high school or college or university and maintains an 80% average, you could qualify for a discount.
Students away at school discount
If your student is away at school and without a car, you may be able to get a discount. Requirements vary among car insurance companies, but the student typically has to be under age 25, more than 100 kilometres from home and with access to your car only while home during school vacations and holidays.
New driver discount
Drivers in their first year with a G2 or G licence may qualify for a discount.
Driver training discount
New drivers, typically teenagers or young adults, pay higher premiums compared to other age groups because they are seen as less experienced and therefore higher risk. However, driving school can shave 10% to 20% off of their insurance premiums for between two to four years after becoming insured.
Electric or hybrid car discount
For drivers who are doing their part to go green with an eco-friendly vehicle, some insurers offer a discount if you drive a hybrid or electric vehicle. For example, as part of its Green Program, Desjardins car insurance offers a 10% to 20% discount on premiums for a hybrid, electric or fuel-efficient vehicle.
Pay in full discount
If you pay your full policy term up front, car insurance companies typically offer a discount. You will also save yourself from paying a monthly finance or service fee that some companies charge if you spread out the payments.
Alumni associations and professional organization discount
This might include university alumni associations and professional organizations. For example, Sonnet car insurance offers the Canadian Alumni group discounts to graduates and students of Canadian universities. (Colleges are not part of this program.) TD Insurance offers preferred rates to over 750 alumni and professional groups.
Loyalty discount
If you stay with your insurer for a certain amount of time, you could be rewarded for your loyalty. For example, Allstate insurance offers policyholders in Ontario, New Brunswick and Nova Scotia a discount for being a customer for three years or more.
Individual discounts
There may be individual discounts applied depending on your age, marital status, occupation and whether or not you’re retired.
Car Insurance Discounts Tips
Cheap car insurance is always good, but car insurance discounts aren’t always what they seem. For example, you might think, “Big savings!” when you see a discount advertised with “up to 40%” off, but that doesn’t necessarily mean you’re going to get 40% off your entire car insurance bill.
Here are some discount car insurance tips.
Beware of the “up to”
You’ll usually see that discounts are listed as “up to” a certain percent. You might not get that percent. The highest discount may be offered only to certain classes of drivers, for example.
Some auto insurance discounts don’t apply to your entire bill
For example, anti-theft device discounts might apply only to comprehensive coverage, because that’s the coverage that pays for car theft.
Discounts can be capped
You might qualify for multiple discounts, but the insurance company usually limits the total possible discount percentage. For example, you might add up discounts that look like 75% off your auto insurance (hello new espresso machine!), but the total might be capped at 20%.
Not all discounts are automatic
You might have to ask for them, especially if you’ve had the same policy for a few years. Your insurance company won’t know that you had an anti-theft device installed in your car, or that your student driver has excellent grades. The best way to save money on discounts is to ask your insurance agent on a regular basis to review the available discounts.
Discounts vary by province
A discount you see mentioned on an insurance company website might not actually be available in your province.
Car Insurance Discounts FAQ
What are the best discounts for car insurance?
Bundling (also known as a multi-line discount) is one of the best car insurance discounts you can get.
You can typically get a discount of 5% to 25% when you bundle your auto and home insurance. But if you’re not a homeowner, that’s OK. You can potentially get a bundling discount if you insure your car with the same company you use for condo, renters, boat, motorcycle or RV insurance.
Good driver discounts are another solid bet. Car insurance companies love safe drivers. If you avoid car accidents and traffic violations, you can usually find discounts between 10% and 40%.
It doesn’t hurt to pick up the phone and ask for a review of available car insurance discounts.
How long do you have to be with an insurance company to get discounts?
Eligibility for car insurance discounts will vary by company and the type of discount. You might qualify immediately for certain discounts, like a bundling discount and discounts for vehicle safety features.
Other types of discounts can be triggered when you complete an action, like switching to paperless billing or paying your bill in full at renewal time.
You may also qualify for a loyalty discount for being with an insurer for a certain length of time.
How much is a good student discount for car insurance?
Student discounts range depending on the car insurance company. Generally, to qualify for a good student car insurance discount, the student must be enrolled full-time in high school or college, be under age 25 and maintain an 80% average.
But good grades in a traditional classroom aren’t the only way for a young driver to earn a discount. You might be eligible for a discount if your teen driver completes a safe driving program.
