Auto Insurance Discounts You Should Know About

December 20, 2022


It’s no shock to any Canadian that driving can be expensive. It’s convenient, sure – being able to drive anywhere and everywhere without having to map out a transit route or hail a cab first, but there’s a lot of expenses that come with that convenience. There’s your car payments, if you didn’t already purchase your car upfront, there’s gas money (which is ever-climbing it seems) and there’s insurance premiums. This can all be very overwhelming for some of us, who are quickly finding their car to be the most expensive part of their lifestyle. But what if there was a way to reduce those costs, without having to dump the vehicle we know and love and while remaining insured? After all, car insurance in Canada is mandatory – we can’t exactly go without it.

Enter auto insurance discounts.

This list compiled by yours truly here at Excalibur Insurance is some of the most common auto insurance discounts that can help you reduce costs without sacrificing any of the coverage you need. For more information or for eligibility for each of these discounts, don’t hesitate to contact a Defender to discuss.

1. Winter Tire Discount

Winter tires should be something everyone in Ontario acquires, regardless of the insurance discount it may provide. See, winter tires keep us safe on the icy and snowy roads once November/December rolls around and some provinces (such as Quebec) mandate their usage. Winer tires aren’t a protect-all against accidents, but in good condition winter tires will maintain tire elasticity up to -40°C (or lower, depending on the make) and can reduce braking distance by up to 25%. They come with a cost, but it’s better than slip-sliding around on your summer tires for 6 months out of the year. Ontario ranks as the third-highest province in winter tire usage, with about 65% of Ontarian drivers using winter tires.

And yes, equipping your vehicle with winter tires come November can even win you a discount on your insurance premiums. Each company will have a different date for when you should put on your tires in order to become eligible for a noticeable discount, so be sure to check with your provider. Winter tire discounts usually range from 2% to 5% depending on your insurance company.

2. Telematics-based Discount

Ever heard of telematics? It’s a device that’s put into your vehicle which monitors your driving habits and rewards you with insurance reductions if it finds your behaviours consistent with that of a “good driver.” In essence, the safer you drive (and also the less you drive overall) the more you’ll save. This device has become increasingly popular in helping drivers win considerable discounts.

3. Policy Bundling Discount

This discount exists with virtually every insurance company, and you can achieve reduced premiums simply by purchasing all your insurance policies through a single provider. That goes for your home insurance, renter’s insurance, motorcycle insurance, life insurance, etc. – all through the same provider as your auto (assuming that your auto insurance provider also offers other insurance products, because not all do.) Most people bundle their auto policy with a home or renter’s/condo policy. The more policies you can have through a single provider, the likelier you are to receive a bigger insurance discount.

4. Low Mileage Discount

Stats show that the more time you spend on the road driving, the likelier you are to be involved in an accident. Having a shorter commute, working from home, or driving less distance overall each day is a sure-fire way to reap a considerable discount on your insurance premiums. The discount is higher depending on the threshold of distance you drive – most discounts will cease after 11,000km/year.

5. Hybrid/EV Car Discount

Not only are they trendy and great for the environment, but hybrid and electric vehicles may win a reward of 5% or more from insurance providers looking to encourage the green thumb in our drivers. Moreover, EVs especially having less of a chance of explosions or fires, given that they have no combustible fuel that could result in fires.

That being said, hybrid cars and EVs are still much more expensive to repair and/or replace than your average gas-powered car, so the discount that they may provide you could be negligible in the long-run. However, as EVs and hybrids become more popular, their replacement/repair cost could go down.

6. Good Grades Discount

If you are a licensed driver who is under the age of 25 and is getting great grades at school, then you’ll want to mention that to your insurance provider. They could give you a considerable discount on your insurance premiums. There’s a strange statistic that aligns good grades with a reduced risk of accidents – (yes, and we know it sounds a little strange, but it’s true!) For younger drivers, auto insurance can be rather expensive since stats aren’t in the favour of the young and inexperienced individuals behind the wheel, but a few discounts – such as the good grades discount – can go a long way!

7. Return Customer Discount

Loyalty discounts can reap you with some of the most considerable benefits – some of up to 20% on your insurance premiums if you’ve been with the same provider for a number of years. This discount may only apply if you haven’t made a claim or had an at-fault accident during those years. Moreover, staying with the same insurer ensures you’ll never have a gap in your coverage, which can make insurance more expensive down the line or make it difficult to get insured at all.

8. Higher Deductible Discount

If you’re OK with increasing your deductible (i.e., the amount you pay out in the event of a claim), know that a heightened deductible will result in reduced insurance premiums. This is because your deductible is your “part” of the loss you’ll have to payout if you get into an accident or your car is damaged. Make sure it’s an amount you’re comfortable with!

9. Senior Vehicle Discount

Only a few insurance companies may offer this discount, but it doesn’t hurt to ask – if you’re retired, and your company offers this discount, you could secure a discount of anywhere between 5-15% for your accident benefits coverage.

Now that you know some of the discounts that are available, be sure to get in touch with an Excalibur Defender to discuss your coverage and see about the kind of discounts are available to you.