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Marie Alcober
Updated Jun 25, 2026
Auto insurance premiums have climbed 18.9% since October 2020 — and auto-renewing without comparing rates could be costing you.
With Rates.ca, you can compare 20+ quotes from top-rated auto insurance providers in as little as 3 minutes, for free.
You could even save up to 20% by bundling home and auto coverage.
When was the last time you checked your car insurance rate?
If it’s been a while, you are likely losing money every month.
Auto insurance premiums have climbed 18.9% since October 2020, according to Statistics Canada.
This significant increase suggests that many people are overpaying for car insurance simply because they don't compare rates regularly.
Fortunately, you don't just have to sit back and accept these rising costs. Here are three ways that could help lower your premium.
1. Stop auto-renewing and compare rates
Many drivers stick with the same insurance company for years out of convenience — and insurers aren't exactly rushing to tell you a better rate exists somewhere else.
The problem is that the comparison market moves whether you're paying attention or not.
Premiums, competition between providers, and your own driver profile all shift over time, which means the rate you locked in two or three years ago may no longer be the best available to you.
While average annual premiums in Ontario hover around $1,927, many experienced drivers with a good record can find rates closer to the $1,500 mark just by shopping around.
While average annual premiums in Ontario hover around $1,927, many experienced drivers with a good record can find rates closer to the $1,500 mark just by shopping around.
By using a comparison platform like Rates.ca, you can instantly view quotes from top-rated providers and see whether a better deal is out there — no commitment required.
With Rates.ca, you can compare 20+ quotes from top-rated auto insurance providers in one place. Just answer a few basic questions, and the platform will show you the most affordable deals in your area in as little as 3 minutes.
The process is 100% free, and there is zero obligation to switch unless you find a better rate.
2. Bundle your policies for a massive discount
If you insure your vehicle with one company and your home or apartment with another, you may be leaving money on the table.
Insurance providers love it when you bring them more business, and they will often offer substantial discounts to win both accounts.
With Rates.ca, for example, you could also save up to 20% by bundling your auto and home insurance together.
It takes just a few minutes to check, and it is one of the easiest ways to strip hundreds of dollars off your annual fixed costs.
3. Adjust your deductibles and drop unnecessary coverage
If you have an older vehicle that’s already paid off, you might be carrying more insurance than you actually need. Take a close look at your policy details:
- Raise your deductible: Bumping your deductible from $500 to $1,000 can reduce your comprehensive and collision coverage premiums by up to 30%. Just ensure you have enough cash set aside in an emergency fund to cover the higher deductible if you ever need to file a claim.
- Drop collision on older cars: If your car's total market value is less than 10 times what you pay annually for collision and comprehensive coverage, it might be time to drop those options.
Once you know exactly what coverage you need, Rates.ca makes it easy to compare plans and find the right fit.
You can shop around for a new policy entirely online — and if you have questions along the way, you can connect with a licensed broker.
Start saving today
Every dollar spent overpaying on a monthly bill is a dollar not compounding in your TFSA or RRSP or going toward mortgage prepayments.
Take a few minutes to compare rates today and see exactly how much you could be saving.
Marie Alcober
Commercial Content Manager
Marie Alcober is a commercial content manager at Money.ca, where she develops branded content that helps readers make smarter money decisions.
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