What is the average annual cost for car insurance in Canada?

Find out if you’re overpaying on car insurance using our cost calculator! Save money by comparing quotes from over 30 of Canada’s top insurance providers!

The best part? It’s FREE!

If you are looking for car insurance, you may not know if that insurance quote is even remotely in the range that would be considered normal. The average annual cost for car insurance is approximately $1700 according to some national figures. Before you write a $1700 cheque, you should know that this can vary widely based on your age and gender and a number of other factors. So, what’s a driver to do?

Female drivers tend to pay less for insurance than male drivers, especially if the males are under the age of 25. Since changing your age, or even gender for that matter, is not easy, we can explore other ways to keep your costs down.

Four Ways to Lower Your Insurance Costs

1. Your driving record plays a large part in your insurance costs

Even if you do not have multiple car accidents, something as simple as a traffic ticket for speeding can increase your insurance costs. Of course, auto accidents also will increase your insurance rates. Try not to get into them. A good way to do this is to take a defensive driving course, which is the next suggestion.

2. Defensive driving courses can lower your rates in more than one way

First, just the fact that you take and complete the course can help lower your rates. In addition, the course will teach you ways to drive and watch out for other drivers. This can help you avoid being in an accident that would have been another driver’s fault. Even if an accident is not your fault, your insurance rates could rise.

3. Be a good student and make good grades

If you are under 25, you already have higher rates than older drivers. However, most insurance companies will offer a discount if you have good grades in school.

4. Insure other things through the same company

An insurance company is in business to make money. It is easier and cheaper for them to get business from current customers than to go out and get a new customer. Due to this, insurance companies will give you a discount if you have more than one policy with them. If you own a home, consider getting your home and auto insurance through the same company. If you do not yet own a home, you can also obtain life insurance through the same company that has your auto policy, which may lower your rates on both policies.

While your rates may be higher or lower than the Canadian averages, if you follow the tips above, your average annual rates will begin to go down. If your average goes down, you can’t help but be glad about that.

Sign up for our Newsletter

Related Articles