Car Insurance Discounts

What are car insurance discounts?

Car insurance discounts are discounts provided by insurance providers to policyholders that meet certain conditions. Conditions vary but may include maintaining a clean driving record for three years, completing an approved driving program, or installing winter tires on your vehicle. Ultimately, the discounts and conditions are different for each insurance company, so it’s crucial to understand which ones your provider offers.

If you aren’t sure whether you qualify for a certain discount, contact BrokerLink. We can find out what conditions you need to meet to be eligible for a discount and provide tips on how to get there. We can also shop around on your behalf to ensure you’re getting the best possible discount.

Auto insurance discounts that may be offered by an insurance company

Insurance companies in Canada offer all sorts of auto insurance discounts to policyholders. We break down the most common discounts below. However, it’s important to note that not all insurers provide such discounts, and if they do, the terms and conditions, as well as the amount of the discount, may vary between providers. That said, if you think you might qualify for a car insurance discount, contact your insurance company or broker for more information.

Safe driver discount

Did you know that you can be rewarded for safe driving? Many Canadian insurance companies offer what is known as “safe driver” or “good driver” discounts. Specifically, such discounts are made available to those with clean driving records. To be eligible, a driver needs to maintain a clean record (one that is free from claims, accidents, or tickets) for a specified amount of time (usually three years). Safe driver discounts vary considerably. Some can save you as much as 25% while others may only save you 5%. Occasionally, an insurance company will offer you an increased discount for every year that you continue to maintain a clean record.

Driving school discount

Enrolling in and graduating from a recognized driving school, course, or program can make you eligible for an auto insurance discount. Driving school discounts are aimed at young or new drivers, incentivizing them to enrol in a driver training or education program that offers many benefits. Beyond a car insurance discount of roughly 5%, attending an approved driving course in your province can teach you important driving skills.

Therefore, not only can driving school save you money in the short term but it can also make you a better driver in the long term, which could help you become eligible for a safe driver discount in the future. Another benefit of enrolling in a driving program, is that in Ontario, doing so makes you eligible to take your G2 test eight months after your G1 rather than having to wait the full twelve.

Winter tire discount

As of January 2016, insurance companies in Ontario offer auto insurance discounts to policyholders that outfit their vehicles with winter tires. The purpose of this is to motivate drivers to install snow tires on their cars, which are known to be much safer than all-season tires during the winter months. Winter tire discounts vary but typically fall around 5%. Beyond simply swapping out your summer or all-season tires for winter tires, there are a few other conditions drivers must meet to be eligible for this discount.

First, drivers must ensure they purchase a set of four winter tires (winter tires are distinguished from all-season tires by the snowflake inside a mountain peak emblem). Further, you must notify your insurance company that you have purchased the tires and should be prepared to show a copy of the receipt or invoice to prove your claim.

Finally, the winter tires must be installed on your vehicle before the specified start date and left on until the specified end date. These dates vary between insurance companies but are usually from December until March.

Increased deductible discount

Another car insurance discount drivers can take advantage of is the increased deductible discount. The good news is that any driver can qualify for this discount. All you have to do is raise your policy deductible. Raising your deductible by as little as $500 or $1,000 can be enough to lower your premium.

So if you’re looking to save money on car insurance, the increased deductible discount could be a worthwhile solution. That said, policyholders should think carefully before raising their deductibles, as in the event of a claim, they would pay the full amount of the deductible. Therefore, a policyholder should never increase either deductible to an amount they cannot reasonably afford.

Telematics discount

Did you know that installing a telematics device in your vehicle could make you eligible for a car insurance discount? Similar to the principle behind the safe driver discount, an insurance company will reward you if you install a telematics device in your car (a device that tracks one’s driving habits) and it shows that you are a safe and responsible driver.

Typically, telematics auto insurance discounts work as follows: the safer you drive, the higher your discount will be. If your insurance company doesn’t have telematics devices, they may have a mobile app you can download that tracks the same thing.

Bundling insurance policies discount

Buying multiple insurance policies from the same provider can also make you eligible for a discount. For example, if you purchase car insurance and home insurance or car insurance and business insurance from the same insurance company, you might save between 15% and 20% on each policy. Insurance companies like to reward customers who spend more money with them.

Private parking discount

Where you park your car can have a direct impact on your car insurance rates. It is a well-known fact that parking in a public space, such as on a street, puts your vehicle at greater risk of being damaged or stolen. Insurance companies may be willing to take on this risk, but they will also reward you if they don’t have to (i.e. if you park your car somewhere safer, such as in a private parking spot). So if you regularly park your car in a private driveway, garage, or laneway, be sure to inform your insurance company as you could receive a discount.

Retirees discount

Drivers of a certain age or retired drivers may qualify for a car insurance discount. For example, if you are an Ontario driver who is retired, you might be able to save up to 15% on auto insurance.

Insuring multiple cars discount

Insuring more than one car at the same time can also make you eligible for a discount, similar to how bundling multiple insurance policies together can. So if your household has more than one car (e.g. a car for you, your spouse, and your adult child), insuring them together will not only be convenient but can also save you money (up to 15% on each policy, to be specific).

Policy renewal discount

Another car insurance discount that may apply to you is the policy renewal discount. In an effort to keep their customers happy and encourage loyalty, some insurers offer discounts to customers who have been with them for a certain number of years and had no at-fault accidents. If you have been with your insurance company for a long time, consider asking them about a loyalty discount the next time your auto insurance policy is up for renewal.

Electric vehicle discount

Save the environment and at the gas pump all while getting a discount on car insurance. It sounds too good to be true but it isn’t. Many insurance companies in Canada now offer discounts of around 5% to drivers of electric and hybrid vehicles.

Anti-theft device discount

Insurance companies like to reward safety - hence the private parking, good driver, telematics, and winter tire discounts. The reasoning behind the anti-theft device discount is similar. When you equip your vehicle with an anti-theft device, it becomes that much harder to steal, which could save the insurance company thousands or even tens of thousands of dollars. As a reward, an insurance company may offer a policyholder with an anti-theft device in their car an auto insurance discount between 5% and 15%.

Contact BrokerLink for more information on auto insurance discounts

Save money on car insurance by contacting BrokerLink today! We can explain the various car insurance discounts offered by insurance companies and find out if you qualify. Beyond discounts, your BrokerLink insurance advisor will shop around and compare auto insurance rates on your behalf to ensure we find you the best policy at the most competitive price.

Get started today by giving us a call, visiting us in person, or requesting a free car insurance quote using our online quote tool. Quality car insurance is just around the corner. We can’t wait to hear from you!

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