• Sun. Dec 3rd, 2023

Car Auto Insurance

It's My Car Car Auto Insurance

You might be spending an extra $700 a year on auto insurance

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This article was created by MoneyWise. Postmedia and MoneyWise may earn an affiliate commission through links on this page.

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If your financial situation has been squeezed by inflation and higher interest rates, you’re probably on the lookout for a quick way to trim down your monthly expenses.

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You could always try one of the obvious strategies — switching to generic brands, making your meals at home or cancelling subscription services you don’t use.

But when was the last time you shopped for a better rate on your car insurance?

Alberta, Ontario, the Maritime provinces and the territories have private insurance markets, with Ontario being the largest in Canada. This means you can buy insurance directly from an insurance company or use a comparison site to find a provider with the lowest rate. Quebec has a system that combines private and public auto insurance.

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The Financial Services Regulatory Authority of Ontario estimates that Ontario drivers paid an average of $1,659 in annual insurance premiums in 2022. If you are in the Greater Toronto Area, that increases to $2,214 a year.

And with insurance companies getting the green light to raise rates in Ontario, your premiums might be going up in 2023.

But depending on which postal code you live in, your driving history and the make and model of your car, some insurers can offer you as little as $45 a month for insurance.

How do you find more affordable auto insurance? Sites like rates.ca can help make comparing multiple insurance companies easier.

How to find insurance saving

When you use an online service like rates.ca, they’ll ask you some quick questions that help determine your insurance needs. Things like your age, your postal code, the type of vehicle you drive and your driving record.

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Based on your answers, they’ll sort through many insurance companies to find you the lowest prices available in your area.

Rates.ca compares quotes from more than 50 Canadian insurance providers, so you’ll get a wide range of options. In 2022, drivers who shopped for a lower price with rates.ca paid 30 per cent less than the average market rate. For the average Ontario driver, that could be close to $500 a year.

They even have a simple car insurance calculator that you can use online right now.

Stop wasting money

Saving money on car insurance is a simple way to reduce your expenses right away. You’ll often get the same, or even better, insurance for less than what you’re paying right now, freeing up room in your budget for the entire year.

In the same amount of time it takes to watch a cat video on YouTube, or catch up on your email you could save yourself almost $60 a month. Besides getting options right away, the service is free.

Check out the rates available to you today.

This article was created by Wise Publishing. Wise is devoted to providing information that helps readers navigate the complex landscape of personal finance. Wise only partners with brands it trusts and believes may be helpful to the reader. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.


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