Reduce Your Premiums With Winter Tires

Reduce Your Premiums With Winter Tires

November 27, 2024

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In January 2016, the Ministry of Finance mandated that all insurance companies must offer a winter tire discount, following a 2014 Government of Ontario initiative aimed at reducing insurance premiums. Installing winter tires not only helps to lower your insurance premiums, but also enhances your safety on icy and snow-covered roads (a true staple of Canadian winters).

Excalibur Insurance is here to help you understand the benefits of winter tires and how winter tire discounts can save you money, while keeping your family safer this winter.

The Benefits of Winter Tires

Winter tires are great way to improve your safety when driving in poor weather conditions. A general rule of thumb is that you should switch to winter tires when the average temperature is below 7°C. This is because the rubber in summer tires and all-season tires tends to harden around this temperature, reducing their grip on the road.

So beyond better grip on the road, why switch over to winter tires? There are 3 main reasons:

  • Better Traction – Built with different type of rubber and deeper treads to prevent snow and ice from building up on your wheels, they offer superior road traction to all-season tires.
  • Improved Braking – Winter tires also offer better braking, reducing the distance required to come to a full-stop in icy or snowy conditions when compared to all-season tires.
  • Increased Manoeuvrability – Improved traction, better grip, and faster breaking all lead to better manoeuvrability over snow. While snow can build-up in the treads of all-season tires, with snow tires have more biting edges. Small slits call sipes allow winter tires to dig into snow and help reduce the risk of fishtailing in slippery conditions.

Is it expensive to switch to winter tires?

On average, mid-range winter tires can cost anywhere between $100 to $200 per tire. All-season tires, on the other hand, cost around $80 to $180 – which may seem like a better deal. However, all-season tires rarely hold up well in extremely warm weather and even worse in colder weather. In some countries or regions, where there is little variability in temperature, they may suffice – but certainly not in Canada. If you rely on all-season tires, you sacrifice the winter tire discount and may end up having to replace your all-season tires after a few years of use.

All in all, having two sets of tires that are only used for six months at a time and last for six or more years is far superior to having a single set of tires, used all year, for only two or three years. Especially when you consider the improved safety and handling of having a set of tires specifically designed for each season.

Ontario’s Mandatory Winter Tire Discount

Here’s what you need to know about Ontario’s mandatory winter tire discount for all drivers who have their vehicles equipped with snow tires during the winter months (generally considered to be November 1 to April 1).

Not all discounts are the same

Unfortunately, the actual amount of the winter tire discount is left up to the insurance company and can range anywhere from 2% to 5%. Some insurers will offer the discount only at certain times throughout the year. Each company is different so be sure to ask your insurance broker if you qualify for the discount and confirm how much it is.

Here is the discount by insurance company, for some of the companies that Excalibur Insurance writes auto insurance for:

Insurance Company Name Winter Tire Discount (Percentage)
Aviva Insurance 2% Discount
Chubb Insurance 3% Discount
Coachman Insurance 2% Discount
Echelon Insurance 3% Discount
Economical Insurance 5% Discount**
Gore Mutual Insurance 5% Discount
Heartland Farm Mutual Insurance 2% Discount
Howick Mutual Insurance 2.5% Discount
Intact Insurance 3% Discount
Jevco Insurance 2% Discount
SEH Mutual Insurance 2.5% Discount
SGI Insurance 5% Discount
Travelers Insurance 2% Discount
Wawanesa Insurance 3% Discount

Terms and conditions apply to all of the discount amounts listed in the table above.

*Table last updated November 27, 2024

**Approximately a 5% winter tire discount with Economical Insurance.

It’s also important to note that while the discount seems small, the installation of winter tires can keep you safer on the road and prevent you from getting into accidents with other vehicles or stationary objects. The more accidents on your insurance record, the higher your insurance premiums will be.

When buying winter tires, insurance companies are also reminding drivers:

  • Look for tires marked with a logo of a peaked mountain with a snowflake in the middle (this symbol certifies that they are winter tires);
  • Install the tires in sets of four;
  • Do not mix and match tires with different tread patterns or sizes;
  • Change tires that are worn close to the tread-wear indicators (generally if you can stick a toonie into the tire tread and still see the letters on the silver part of the coin, it’s time to replace your tires); and
  • Check the tires’ air pressure at least once a month

Most companies require you to have the winter tires installed from November 1 to April 1. Some companies may at any time require you to produce a bill of sale for the winter tires and/or the receipt of installation of the winter tires in order to validate the discount being applied to your auto insurance policy.

Once the discount is applied, it will remain on the vehicle unless the vehicle is substituted. Any change of vehicle will require re-qualification of the winter tire installation.