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Five Changes That Can Lower Car Insurance Rates

April 30, 2015

Car insurance is a bill that everyone would like to see reduced, and fortunately there are a number of ways to help lower car insurance rates. A few simple changes—some of them that you can make with ease, others that might happen on their own—may save you a lot of money on your car insurance bill. Being aware of what they are and how to make them happen keeps you ahead of the game when it comes to getting the best rate on your insurance coverage.

Changing Your Deductible

The deductible can make a big difference on car insurance quotes, but many people are afraid to carry a higher deductible because they don’t want to have to pay in case of an accident. The truth is that carrying a higher deductible can save you a lot of money over time—more than enough to make up for having to pay it should an accident occur.

A safe driver can go for many years without having to pay a deductible—if they ever have to at all. That means that every year that a safe driver saves on their car insurance and doesn’t pay that higher deductible, it’s money in the bank. A change in deductible from $500 to $1000, for example, could save you five to 10 per cent off your premiums. That means it has paid for itself after a few years without an at fault accident.

A New Car

Although going from a much older car to a newer one is likely to mean an increase in payments, sometimes buying a new car can save you a lot of money. If you go from a vehicle that tends to have higher insurance rates such as a luxury car, sports car, or large SUV, to a smaller or more economical vehicle that has a lower risk level for the insurance company, you could see those rates go down.

There are even some cars that come with discounts, such as those that are considered to be highly fuel –efficient or hybrids, or cars with the latest in anti-theft technology. It’s something to consider when you’re shopping for a new car.

Shopping Around For a New Company

Changing to a new insurance company could be the change that brings you rates down the most, but unless you take the time to shop around regularly, you will never know how much you could save.

Moving to a new car insurance company is probably the most common method by which drivers see major savings on their insurance premiums. Searching for car insurance quotes online takes much less time than calling insurance companies directly.

Tickets and Accidents Falling Off Your Record

If you have been paying for an at fault accident or a ticket on your premiums, the day that it comes off will be a good day for your insurance premiums. Remember that while the charge will come off your driving record on the day it was officially recorded against you, it won’t come off your insurance bill until renewal. That’s because your insurance company did not start charging you for the ticket until your policy renewed in most situations.

While most insurance companies are on top of this and will take that charge off right away on renewal, it’s good to be aware of when you should no longer be charged. If you don’t see a reduction on renewal, give your insurance company a call and find out what’s going on.

Moving to A New Home

Moving is a major change in your life, and it can change your car insurance rates for the better in more than one way. First of all, each postal code has its own risk level in terms of theft and accident statistics. That means that if you move to a neighbourhood where these statistics are lower, you will likely see a reduction in rates.

Additionally, if you move closer to where you work, the shorter commuting distance can mean another reduction in your rates. While you wouldn’t move just to reduce rates or choose your new home based on it, it’s good to be aware of how the move can affect premiums. Getting quotes for potential new homes from your insurance company will help you to understand how it can change your rates for the better.

Getting lower insurance rates isn’t complicated—it just requires that you take a little time to review your policy and be aware of the changes that can give you a better rate. These are five of the most common changes that result in lower rates; some of these you can take advantage of immediately to see a lower premium on your next bill.

  • Terry


    I have done several of these things but my insurance rate went up recently. My insurance company said tey cannot compete with insurance brokers so my rates are higher. Is there a company you can recommend I get a quote from ?


  • Vlad

    I spent in Canada 3 years ! Since that time my insurance only climbing up ! :)
    The same car . No claim , no ticket . In my opinion , car insurance company , like oil company charge you for nothing ! I never saw customer oriented insurance company ! Everything what they want – charge you money !

  • JLedford

    How long should an accident record be on your file. If you had an accident in 2008 which they call an at fall accident due to snow condition.

  • Nick – InsuranceHotline.com

    An accident stays on your driving record for 6 years. If your accident was in 2008, it should be removed from your record in 2014.

  • Nick – InsuranceHotline.com


    Each insurance company charges different rates to insure the same driver, with the same coverage, on the same car. You are able to get a quote on our website and we’ll provide you with the lowest rates available within our network of over 30 insurance companies. Click here to get a free, no obligation quote.

  • JackieP

    I just had a huge jump in my insurance because of a new vehicle and I moved. I have never had a ticket or an accident in over 30 years and still our insurance keeps going up. Such a rip off!!!!! Someone should be using all that money to go after the people that are scamming the insurance companies!!

  • Leroy

    I moved in December and my insurance went down to $179. I get my re-newal in August, now they tell me it will be going up to $ 217 almost a $40 dollar jump ……how is this stuff even legal?
    They tell me it’s because of some changes the Government made having to with the (Providing other coverage when insured persons drive, rent or leas other automobile) This section of my coverage went from nine hundred plus last year to $1,203 comong August. Is this true. I have all the little things that should keep my insurance down , including the $1000 deductable, but they dont work too well…

  • Robert

    I insure my house, cars and trailer all with the same company but here you can only put in your car or house so not a fair comparison

  • Nick – InsuranceHotline.com


    If you enter that you want to insure your home with the same company on our site, we will include the multi-policy discount on your auto policy. You can then do a home quote on our site and we will include the multi-policy discount on that policy also.

  • Nick – InsuranceHotline.com


    Unfortunately, we cannot address your specific policy. You are best to discuss your situation with your insurance professional. If you are dissatisfied with your rate, you should shop around to see if you can find a better one.

  • Helen

    If a driver has had a stroke, what must one do to retain the driver’s license? Thank you.

  • Renee Leese

    The only part I found to be incorrect was :”A change in deductible from $500 to $1000, for example, could save you hundreds each year” – maybe hundreds of PENNIES! 99% of the time when a customer asks me for a price on an increased deductible, they dont increase it since the savings isnt worth it.
    Otherwise I believe this to be great advice. Another piece of advice is to let your insurance company know if you are ever unemployed or not working. They will reduce the usage on your vehicle from Work to Pleasure and this could save a few hundred for the policy term. The best advice I could give to insurance clients would be to build a relationship with your agent or broker. There are so many advantages our long term customers get, and the better we know our customers, the better we can manage their policies and ensure they are receiving all the dicsounts they qualify for… It is always worth it to shop around, but I wouldnt switch companies unless there is a drastic change in premium (unless you are unhappy with your provider), this affects loyalty discounts.

  • Glauco Ramos

    I think Insurance company In Ontario is a big Mafia…. i have paid more then $10,000 of auto Insurance and My Car is not worth That anymore… They always find a way To rise people Insurance for no reason. You can have a clean record, no ticket etc But They still rise your Insurance… Government of Ontario When Its comes To Auto Insurance They are part of this Mafia.

  • Rano

    I do have a clean driving record for a straight 7 years now in Canada, yet my insurance is still very high for a single driver. I have done all this yet my insurance is still $256.

  • Nick – InsuranceHotline.com

    Hi Rano,

    Have you tried shopping around for car insurance? Each insurance company charges different rates to insure the same driver with the same car and the exact same coverage.

    Try doing get car insurance quotes online at InsuranceHotline.com. Your rate will be compared against our network of over 30 insurance companies.

  • Nick – InsuranceHotline.com

    Hi Renee,

    Thanks for your comments! I had a different experience with deductibles…by increasing my deductible from $500 to $1,000, my insurance premium dropped $200/year. It would likely depend on the insurance company, as each insurance company charges different rates.

  • Sarah

    I would recommend Insurance Hotline.com or insurancehunters.com both are very good sites and when you ask specific questions they answer. I am currently in the process of switching brokers, my carrier will still be the same and my quoted price has dropped significantly. Very impressed.

  • PeterC

    Hi, a few years ago I moved from Quebec to Ontario (Ottawa). The same car insurance with AXA went up from $550 to $2,300.
    I hate insurance companies, I have small kids and have to refuse them pleasure and good food in order to afford insurance of my car.

  • Nick – InsuranceHotline.com

    Thanks Sarah! We’re happy to hear your great feedback and that you will be saving a significant amount of money!

    InsuranceHotline.com is truly unbiased and able to compare your insurance rates against a network of over 30 insurance companies; whereas InsuranceHunters.com is a broker and only able to provide their own rates.

  • Nick – InsuranceHotline.com

    Hi Helen,

    Your driver’s licence will be considered for reinstatement when the appropriate medical information is received and reviewed. If your report indicates that the medical standards are met, and there are no other outstanding suspensions on your driving record, a letter advising you of the outcome of the review and a notice of reinstatement will be mailed to you.

  • Philippe Cyr

    I live near a major Car Manufacture (honda Canada) which I suspect is one of the reasons why insurance rates are so high in my area, never put 2 and 2 together until I read this article. I have a question about being considered a new driver as I let my licence expire while I lived in Toronto and am About to start the process of getting it again so I can become more mobile. How much does it matter about your licence level to insurance if you have a G2 when you are looking to buy new, I was driving for 5 years before I let it expire (which if I was smart I would of renewed it then) My record is flawless when I did have it before would that experience be considered when I am ready to buy insurance.? I will be ready for buy in the next year and the models of cars I am looking at are the Mazda 3, Nissan Versa and the Chevy Cruze all either the 2013 or 2014 model. The Mazda will be the GS-sky with its standard options plus a block heater and all weather mats , the Versa would be the SV trim I believe and the cruze would be the base model. I am well aware that the rates would be higher due to the car being newer and I accept that. Also how much would the over 25 reduction be as I am not one of those drivers that goes 140 I stick to the speed limits and drive very conservatively and alertly. Also is there any such thing as a Family Policy>

  • http://www.insurancehotline.com/ InsuranceHotline.com

    Hello Phillippe,

    Having a lapse in your insurance coverage will typically affect your rate and being a new driver again for 5 years will also increase your rate. You would be best to shop your rate for the best rate that matches your profile. I’m not sure what you are referring to by “family poilcy” could you clarify? There are so many variables that are factored into underwriting for insurance premiums and you have a lot of questions. You might be best to narrow down your search and once you have the car selected then you can proceed with obtaining a quote.

  • Fida Shamim

    Hi Peter,
    My friends in Quebec got a shock to see the same insurance differential between the two provinces. It deprives us all to meet our basic needs

  • http://www.insurancehotline.com/ InsuranceHotline.com


    If you had a medical suspension it might. It would depend upon how long your licence was suspended.


  • http://www.insurancehotline.com/ InsuranceHotline.com


    It’s very similar. You can find the rules t the ministry website. http://www.mto.gov.on.ca


  • http://www.insurancehotline.com/ InsuranceHotline.com


    It depends on your insurance company. Some companies might charge. Check with your broker to see what your companies rules are .

  • Filip

    If you believe your car isn’t worth it, buy only liability. Your not obligated to have insurance for damages to your vehicle (collision and comprehensive) unless you are financing it… In which case you should be angry with the bank who demands insurance.

    I understand the anger resulting from increases in premium, but the true enemies are those scamming the companies and claiming thousands of dollars worth for “stress” or fake injuries. Just like a bank or grocery store, Insurance companies are businesses and need to make a profit, they adjust their prices based on the claims paid out. If fraud drops, so do premiums.

  • boomstick84

    also ontario student loans. they pull money from your account without telling you, take your tax return, and skim your pay checks even if your on top of payments. no doubt about it ontario government is one great big fucking mafia ring. also they make horrible decition with tax payers money constantly. no other province that ive lived in is anywhere near this bad to my knowledge.

  • smayer97

    Though it does not account for all the difference in rates between Quebec and Ontario, QUebec has a special insurance fee they add to your driver’s license, so the license is hundreds of dollars more per yr vs Ontario. So you have to add the two rates together to get a true comparison between the two provinces. The same may apply to other provinces too.

    When I did the switch many years ago, when I combined the two, it turned out a little cheaper in Ontario.

  • eirescott@gmail.com

    That’s a load of crap Filip. Are you an insurance salesman by chance!? The fraud argument doesn’t hold. Insurance companies pay millions – maybe billions – of dollars in courts to avoid paying anything to anyone. They could pay a minimal amount to investigate or battle fraud. Like everything else; the cost ends up with the consumer; even when these companies pay their executives MILLIONS PER YEAR and show profits that are disgusting while we are laden with debt and excessive costs.

  • eirescott@gmail.com

    Are you fucking joking insurance man (smayer97) The rude rates in Ontario are corporate greed backed by the Government…Period. Don’t bullshit the masses with your rhetoric!

  • eirescott@gmail.com

    Rano…don’t belive the “InsuranceHotline” broker. When Lee Romanov owned this site; the rates were truly amazing….now; it is a corporate entity (likely affiliated with at least one insurance corporation) that owns it. The profits for auto insurance in Ontario are disgusting; although these white collar thieves will tell you they make nothing…that lie alone should tell you something…that they likely lie a lot about profits and costs and reasons for them.

  • eirescott@gmail.com

    Hi Jackie
    That’s what they will tell you; but in reality, it’s the insurance companies that are scamming us for the most part. They “have to” make profits; and I don’t mean a few dollars. They must please the shareholders and pay their executives millions of dollars PER YEAR. You see, it’s a greed thing that is paid for by YOU and ME.

  • eirescott@gmail.com

    You’re right Vlad
    Thanks for pointing out the obvious. The insurance companies will NEVER admit to this corporate greed mentality. They will lie and pay-off the Government to maintain their “legally authorized” theft of the people of Ontario.

  • smayer97

    I was not commenting on whether Ontario rates are justified or not; simply on the difference between Quebec and Ontario.
    And is you foul language really necessary? Does it adds anything to the conversation?

  • eirescott@gmail.com

    Yes, the foul language is necessary in some cases such as this. It shows (in writing) how angry I am with this subject. Many intelligent people use “foul language” to get a point across; or to make a point more intensely.

  • smayer97

    I understand you being upset about the topic. But using foul language shows a lack of respect for people and is misdirected anger.

  • Kevin Smythe

    And even though you think intelligent people use foul language to make a point, its use actually reveals an extreme lack of intelligence.

  • Kevin Smythe

    The only corporate connection I could find after a quick search was Torstar. However, I would not be surprised to find others too if I was to dig deeper.

  • edgar welder

    like a wise man said thousands of years ago,,nothing will change unless you make it change,,,all this is happening because we all allow it to happen,,period

  • eirescott@gmail.com

    So George Carlin, Robin Williams and Marshall Mathers – to name a few – are not intelligent?

  • eirescott@gmail.com

    I have absolutely NO respect for the corporate thieves stealing from us; so again….this is why I used “foul” language. It is not misdirected.

  • smayer97

    Again, you are using foul language at people that are not responsible for your anger, therefore, misdirected.
    Irrespective, there are more intelligent ways to deal with anger than using foul language.

  • Kevin Smythe

    I was going to give a lesson on context, but then I read the name of the person who asked this question.

  • eirescott@gmail.com

    It took you a month – and still no logical rebuttal?

  • Erin Ashley

    Anybody know if I do an online quote to see what the cost could be with a second car added to my policy, if I can add the second car to my existing policy and get it for the same price as I was quoted? (minus the online discount since I wont be purchasing a new policy)

  • billy

    so im expected to fucking move to a new home to drop insurance rates?…fuck you

  • Luis Hefferan

    I drive a Corolla 2004, Market value 4,500$ and my insurance is 2,400$ a year. I could literary buy another car every two years.

  • Luis Hefferan

    I agree with most of you that there is some mafia behavior behind the insurance companies.

  • brittany

    Insurance is a scam no matter how you see it. Driving should be at your own risk with everyone paying just a little per month for investigations in accidents to see who is at fault. Then we have the option of obtaining insurance to cover our person and our vehicles in case something happens. Most of us have health insurance these days so who needs the PIP, really? If you want to drive a $100k car then you had better insure it. But me, I drive a 20 yr old hooptie. Any fender bender will just about total it, so I would rather put my $100/mo in a savings account and retain my rights so I actually have money to replace the vehicle when I get eventually get rear ended.

  • mark

    mr or Mrs. InsuranceHotline please stop trying to fool us …..you are no different than any of these insurance companies that jack up the prices every year no matter that you have no tickets or convictions for ages…big rip off …they raised my insurance 20 dollars a moth for no reason just because they say they are raising for everyone///by the way I tried a quote with insurancehotline and you gave me a price 430 dollars for month and I let you compare that price with 210 per month I’m currently paying………BIIIIIIG SCAAAAAM ……

  • InsuranceHotline

    We don’t create the rates. Insurancehotline.com obtains rates from the same place that broker do. I’m not sure why there is such a big difference.

  • Michael A Delaney

    Well, if drivers stop doing things other than paying attention to the laws of the road and drive safer we wouldn’t even need collision or insurance. Wake Up people and pay attention when you are driving. Don’t give these insurance companies your hard earned money. I would say 90% of all accidents can be prevented. So let’s work together and drive alert at ALL TIMES. Be courteous and not it’s all about me while driving! I am Very Serious, as I am a Professional Driver on our Highways and it is Despicable What I see on a Day to Day Basis. Wake Up or Don’t Drive.

  • Michael A Delaney

    Your comments are appreciated, but not 100% accurate. When 911 happened our insurance rates went up to help pay for the losses that the insurance companies had due to having to pay for the damages caused by the twin towers going down. That is a real crime, as I did not agree to pay more if an insurance company loses money due to them covering things of that nature. Car or Auto insurance should be separated from other insurances such as life insurance, House insurance, and other unrelated insurances to the Auto field.

  • Michael A Delaney

    I think that people that judge others on their use if language are the ones with disrespect. A word is a word and if you cannot handle it then don’t read such forums that may offend you.

  • Aura

    Seeing a lot of comments on insurance costs in Quebec vs. Ontario…
    My understanding of the price difference is that Quebec has no-fault insurance. This means that in the case of an accident, each insurance company pays for the damages to the vehicle they insure; even if the driver (their client) isn’t at fault in an accident, they pay rather than going after the at-fault driver’s insurance to pay. In the end, it averages out and the companies save a lot of time/money by not suing each other in courts, this means lower premiums for everyone (and less business for lawyers).
    I’m sure there are other factors, but this is definitely an important consideration.