Compare Quotes
HomeCar Insurance ResourcesAre Car Insurance Rates Negotiable?

Purchasing car insurance is not like purchasing a house. There is no wiggle room for car insurance premium negotiations. However, there are a number of ways that you can save on auto insurance. The first thing you can do when looking to purchase car insurance is shop around. Car insurance comparison sites are the best way to do your online car insurance shopping. Many car insurance comparison sites offer online tools so you can obtain numerous car insurance quotes in a safe and convenient fashion. As provincial governments in Canada prescribe standard policy coverages there is also limited flexibility on what insurance providers can and must provide. 

Why Do Car Insurance Rates Vary So Much?


Car insurance rates vary according to the province in which you reside, the type of car insurance structure in each province such as private versus public, mandatory coverage required, and other rate determination factors. 

Ways You Can Obtain A Good Car Insurance Rate

Since the likelihood of negotiating a better car insurance rate is slim and next to none, there are other ways you can reduce your car insurance premium to get a better rate. Speak to your car insurance specialist regarding:

  • What car insurance coverage is mandatory and what is optional
  • The coverage you really need for your individual situation
  • What discounts are available that you are eligible for
  • If you can save when reducing annual mileage
  • What the best insurance friendly vehicles are if you haven’t already purchased one
  • What the best areas to live in are for the cheapest car insurance
  • Your age, gender, driving experience, and driving and credit history
  • Coverage for additional drivers
  • Insurance bundling options

Mandatory Car Insurance Coverage Versus Optional Car Insurance Coverage


A good way to keep the cost of your car insurance premiums down is to purchase coverage that is only necessary. Mandatory coverage is required in every province in Canada. In Ontario, the mandatory car insurance coverage is $200,000 in third-party liability coverage, accident benefits coverage, direct compensation physical damage coverage, and uninsured automobile coverage. Ontario drivers can also purchase additional third-party liability converge, additional accident benefits coverage, and additional property damage insurance. 

Purchase Only the Car Insurance Coverage That You Need

Don’t be a victim of over-insuring yourself. To save money, only purchase the car insurance coverage that you really need for your individual situation. 

Ask About Available Discounts

Many insurance providers will provide their clients with some discount options that can really reduce the annual premium. Speak to your insurance provider to see what they offer and what discounts you qualify for to help reduce your premium. 

Reducing Annual Mileage

low mileage

Another great way to save money on car insurance is to reduce your annual mileage. You can do this by taking public transit when possible or even carpooling. This is also a great way to reduce your carbon footprint in the environment. 

Insurance Friendly Vehicles

If you haven’t already purchased a vehicle and are shopping around for one, speak to an insurance specialist to see which vehicles are cheaper to insure. 

Geographical Location

It is a well-known fact that some areas in Ontario pay much higher insurance premiums than others. Find out which areas offer the cheapest car insurance if you are considering a move. 

Age, Gender, Driving Experience, Driving and Credit History

Insurance premiums are all about risk evaluation. The best way to obtain a good car insurance rate is to keep your risk factors very low. Risk factors include age, gender, driving experience, and driving and credit history. Keep a safe driving record and insurance claims to an absolute minimum. Always ensure you pay your premiums on time. 

Coverage For Additional Drivers

Adding additional drivers to your car insurance policy can increase your premium. Only add drivers to your policy when necessary. 

Insurance Bundling Options

Many insurance providers offer other insurance products such as home insurance, life insurance, motorcycle insurance, seasonal car insurance, classic car insurance, and more that can be purchased in addition to car insurance. This is referred to as bundling and can help save on car insurance premiums. 

What Causes Car Insurance Rates to Escalate?

calculating money savings

There are certain factors that can drive car insurance rates up. Even though there are regulatory regulations on annual car insurance premiums, there may be some additional factors that can cause your car insurance to escalate. These factors include:

  • A lapse in your car insurance
  • Non-payment of premiums
  • Too many at-fault insurance claims
  • Moving to a high-risk area
  • Purchasing a brand new vehicle
  • Adding additional drivers to your car insurance policy
  • Neglecting to advise your insurance provider about personal changes
  • Changing your occupation
  • High levels of insurance fraud in your location 

8 of The Cheapest Car Insurance Areas To Live In in Ontario

According to car insurance industry statistics, the 5 cheapest areas to live in Ontario for car insurance are:

  • Kingston, Ontario – located on the eastern end of Lake Ontario, in Eastern Ontario mid-way between Toronto and Montreal.
  • Napanee, Ontario – located in southeastern Ontario, approximately 45 kilometers west of Kingston.
  • Port Hope, Ontario – located in Southern Ontario, approximately 158 kilometers west of Kingston on the north shore of Lake Ontario.
  • Cobourg, Ontario – located in Southern Ontario, approximately 95 kilometers east of Toronto, in Northumberland County.
  • Brockville, Ontario – located in Eastern Ontario approximately 210 kilometers west of Montreal and 340 kilometers east of Toronto.
  • Cornwall, Ontario – located in Eastern Ontario approximately 110 kilometers southwest of Montreal.
  • Petawawa, Ontario – located in Eastern Ontario in the Ottawa valley approximately 389 kilometers northeast of Toronto.
  • Russell, Ontario – located just southeast of Ottawa Ontario in eastern Ontario approximately 433 kilometers east of Toronto.

The Greater Toronto is The Most Expensive Area in Ontario For Car Insurance


Car insurance in the greater Toronto area remains the highest. The city of Brampton tops the charts at approximately $2,698 per year for car insurance, followed by Mississauga, Vaughn, Richmond Hill, and Markham. A high volume of insurance claims and increased car insurance fraud accounts for the high rates in the Greater Toronto area.

About the Author: Valerie D. Hahn

Valerie is an insurance editor, journalist, and business professional at RateLab. She has more than 15 years of experience in personal financial products. She strives to educate readers and ensure that they are properly protected.

Leave A Comment

Continue Reading