How Ontario drivers are saving money on premiums: survey

A recent LowestRates.ca survey sheds light on the financial challenges faced by Ontario drivers, particularly when it comes to car insurance affordability. 

When asked, 34% of respondents who owned their car found their auto insurance "somewhat affordable," while 21% said it’s either "not very affordable" or "not affordable" at all (12%). 

These concerns align with the province’s rising premiums. In Q1 2025, rates rose 14.7% year-over-year, accelerating to 18.5% in Q2—the highest in Canada. Even quarterly increases were steep, with premiums up 4.5% in Q1 and 4.4% in Q2. 

This surge is fueled by inflation, auto theft, rising repair expenses, and a spike in claims, leaving drivers looking for ways to reduce expenses. 

From telematics to deductibles: Ontario drivers' money saving tactics 

To manage rising premiums, Ontario drivers turn to different auto insurance strategies, including adjusting coverage or exploring new discounts. 

One-third of drivers are adjusting coverage or deductibles 

According to the survey, 33% of respondents have adjusted their coverage or deductibles—making it the most popular savings tactic. 

Reducing optional coverages, like collision or comprehensive insurance, is common for older vehicles where repair needs may outweigh the car’s value. The discount can be potentially significant.  

For example, according to the LowestRates.ca auto quoter, a driver with a 10-year-old Honda Civic* could save around $500 annually by removing these coverages, lowering premiums from $1,976 to $1,476. 

However, Steven Harris, licensed insurance broker and LowestRates.ca expert, notes that the used car market has shifted.  

He explains older vehicles now hold more value—like a 12-year-old Dodge Grand Caravan selling for $20,000 on resale sites—making dropping coverage riskier. 

Harris advises assessing your car’s value and risk tolerance. For cars worth $2,000 to $3,000, skipping this coverage may still make sense. 

Do your homework: research your car’s resale value on platforms like Kijiji Autos, Clutch or even Facebook marketplace. Compare listings for the same make, model, year, and condition to make informed insurance decisions based on current market data. 

Increasing deductibles is another common way that customers lower their insurance bill. 

“The higher you increase that deductible—say $1,500 or $2,000—you’re taking on more 
responsibility for a claim, which reduces your premiums,” says Harris. 

However, he cautions that hypothetically, if a $500 increase only brings your total down by $20 annually, “it would probably take 25 years without a claim to break even.” 

Moreover, while you might reduce your premium now, you’ll need to cover the higher deductible if a claim arises—even in situations beyond your control, like a 50/50 fault ruling after a highway sideswipe.  

"It’s about your risk tolerance,” he says. 

One in five drivers have taken an MTO-approved driving course  

18% of respondents have taken a Ministry of Transportation of Ontario (MTO)-approved driving course to qualify for insurance discounts.  

These courses, often aimed at new drivers, offer training in road safety and defensive driving. In addition to being able to take the G2 road test in eight months instead of a year, student drivers are viewed as lower-risk drivers, making them eligible for discounts of 10-20% on premiums. 

For newly licensed drivers, completing the course can provide three years of driving experience credit, significantly reducing premiums during those critical first years on the road. This makes the discount especially valuable for young drivers, who typically face the highest rates. 

14% are enrolling in usage-based insurance programs 

Usage-based insurance (UBI) programs are gaining popularity, with 14% of all respondents opting in to save on car insurance. 

These programs use telematics to track driving habits—like speed, braking, and mileage—and reward safe driving.  

“Drivers can save 20–30%,” says Harris, though he adds that some pay-as-you-go programs offer up to 60% off by tracking kilometers driven. 

UBI appeals to those who feel penalized by traditional models that rely on broad factors like age or location. By assessing individual driving behavior, UBI offers a more personalized and transparent pricing approach. 

Families can also benefit.  

“If my kids were older and they were getting their driver’s licenses, I would put them on a UBI app,” says Harris. “It’s a great way to keep tabs on their driving score and coach them on safe habits.”  

However, he says that UBI can be a “double-edged sword,” as drivers with habits like heavy braking, speeding, or phone use may face surcharges instead of savings.  

Some programs also track driving times, with late-night hours (12 a.m.–4 a.m.) flagged as higher risk. This could potentially disadvantage night-shift workers. 

5% list themselves as a secondary driver  

5% of respondents are listed as a secondary driver, a strategy ideal for those who use a vehicle infrequently or share it with a primary driver with a lower risk profile, like a parent with a clean record. 

However, this approach must follow insurance rules, as misrepresenting the primary driver—known as "fronting"—is considered fraud and can lead to denied claims or policy cancellations. If you’re sharing a car, a multi-driver discount may be a better option. 

37% of Ontarians are taking other measures to save money  

Over one-third of respondents reported taking other measures to lower their premiums, which may include strategies such as: 

1. Bundling policies: Combining auto with home or tenant insurance can bring discounts of 5-20%. 
2. Installing anti-theft devices: With 9,600 private passenger vehicles stolen in Ontario in the first half of 2025, insurers offer discounts for security features like GPS trackers or immobilizers, which lower theft risk and premiums. 
3. Winter tire discounts: Ontario drivers can save typically 2% to 5% by installing winter tires, a measure that also improves safety. 
4. Shopping around: Comparing quotes from multiple insurers can uncover competitive prices, as premiums vary widely based on the insurer’s risk assessment models. 

Read more: Forty per cent of drivers don’t know if they’re driving a high-risk vehicle - survey 

42% of drivers are missing opportunities to get cheaper car insurance 

While many Ontarians are taking proactive steps to reduce their insurance premiums, the survey also shows that others may be missing opportunities. 

• 19% considered options but took no action, while 
• 23% have not explored cost-saving options at all.  

Many drivers may not realize that simply asking their insurer about discounts—such as those for low mileage, good grades (for students), or loyalty—could lead to immediate financial rewards.

The risks of not paying your auto insurance premiums 

With the rising cost of living, it might be tempting to delay bills, but skipping auto insurance isn’t worth it.  "If you’re having a tough time—maybe you got laid off from work or whatever it is—your auto insurance bill is what you really want to prioritize,” says Harris.  

While there’s usually a short grace period for missed payments, a cancellation for non-payment can impact you for up to three years.  

“Your rates will go up significantly because cancellations for non-payment are one of the heavier [insurance] rating factors,” he explains. 

If you’re struggling, check with a broker for options tailored to your situation—they can help you find a solution. Act now to keep rising premiums in check. 

Read next: What to do if your insurance provider suddenly increases your rate? 

Methodology 

Survey conducted by LowestRates.ca, polling 691 Ontario drivers between September 20 and 22, 2025 who used LowestRates.ca’s auto insurance quoter.   

For example quotes, we used a driver profile of a 35-year-old male living in the M6H 1X1 postal code of Toronto. The driver has a clean record, drives a financed Honda Civic, has been listed on an insurance policy for 18 years, and has been with their current insurer for two years. The vehicle is parked in a private driveway and driven 10,000 kilometers annually for personal use, with no discounts applied for telematics or bundling.