1. Your driving record

A clean driving record translates into a lower premium. A driver with at-fault accidents represents a risk to the insurance company. And you’ll probably pay more if you have more than 1 ticket in the last 3 years for things like speeding or careless driving. How long you’ve had a driver’s licence (and whether you took a recognized driver's training course) can also affect your rate.

2. How much you drive – and where

If you live or drive in a city, you’ll likely pay more for insurance. That’s because cities have a higher incidence of car theft, and with more cars on the roads, accidents happen more often. On top of that, the more time you spend driving, the higher the risk of an accident.

3. Car make and model

Insurance companies have different insurance rates for different makes and models. They look at the chances of your car being stolen or damaged in an accident and how much it will cost to repair. If you’re looking for a car that’s less expensive to insure, check out the Insurance Bureau of Canada’s How Cars Measure Up. In general, rates are higher for newer vehicles and sports cars, but a car’s safety features can help lower the premium.

4. Your deductible

A deductible is the amount you pay in the event of a claim. The lower your deductible, the higher your premium. If you’ve made a lot of claims, your insurer may raise the deductible on your insurance.

5. Type and amount of coverage

In general, the more coverage you have (either standard or optional), the higher your premium. Most of the time, you can customize your policy to suit your needs. For example, you could add more third-party liability coverage or increase your deductible. You can also add or remove coverages like Collision or upset (protects you for damage to your vehicle regardless of who’s at fault) or Comprehensive (protects you against theft, vandalism, hail, or explosion).

How to save on your premium

1. Shop around and compare to find the best coverage at the best rate. Compare quotes to make sure you're getting the best deal—just be sure to get quotes for the same coverage and deductibles.
2. Ask your insurer about discounts. Some companies offer savings if you have an anti-theft system, winter tires, a good driving record, or if you insure multiple vehicles. You can also save by insuring your home and car with the same insurance company.

For more on this topic, visit:

How Car Insurance Premiums are Calculated

Government of Canada: Car Insurance