
Car insurance is getting pricier. 5 ways to try lowering your premium
"I was like, 'You cannot be serious,'" the now 30-year-old Calgary driver recalled in an interview with Cost of Living."What all is included with that — and how can we shave that down?'"
Then in graduate school, Kardal said this was a common conversation for her at the time, to try saving money wherever possible.
She ultimately netted a fresh quote of $130 per month to insure her car, a 2002 Nissan Maxima she lovingly named Maxwell. That fell to $108 after a couple more years of good driving.
While not the most exciting household expense, car insurance is a necessity for drivers. Yet with the cost of insurance on the rise, experts say taking the time to review your driving habits and policy details can mean a welcome difference in what you pay.
Rising premiums
Car insurance premiums saw a brief period of decline in the middle of the COVID-19 pandemic, influenced in part by people driving less along with discounts and rebates offered by government insurers in provinces like British Columbia, Saskatchewan and Manitoba, according to Statistics Canada.
Still, nationally, premiums have been trending up in the past decade: 36 per cent from 2014 to 2024, the agency said in an April 2025 report.
There are many reasons for the higher costs, from increases in auto theft to cars filled with high-tech components that cost more to build from the get go, according to insurance industry expert Sherif Gemayel.
"Replacing a windshield is not just a windshield anymore," said Calgary-based Gemayel, CEO of Trufla, a company providing tech solutions for the industry. For instance, a windshield in a new car might have cameras or sensors integrated, so it's not necessarily a straightforward repair.
"Fixing those vehicles is a lot more expensive. Replacing the vehicles … is a lot more expensive. And the cost of litigation has gotten a lot more expensive."
Inflation has also meant costlier repairs, replacement parts and labour, added Aaron Sutherland, vice-president of Pacific and western regions for the Insurance Bureau of Canada.
Sutherland predicts the Canada-U.S. trade war, and more frequent extreme weather events — like floods, wildfires and hailstorms — will also exacerbate rising premiums. That's all the more reason he believes Canadians should ensure "you're getting the best bang for your buck" by reviewing their policies.
"Insurance is what's there to protect you financially should the worst occur and so it's really important we're all taking the time to understand what we're covered for," Sutherland noted from Vancouver.
Here are a few tips experts suggest Canadians consider.
Seeking options? Speak up
Kardal's approach of speaking up about one's finances and asking for options is a great start. "You never know [when] you can get a better deal," she said.
Canada's insurance marketplace system is competitive, noted Sutherland, so carving out some time to research and compare offerings — for instance with an insurance broker — is worthwhile.
"In many cases, you may be able to find a cheaper alternative from another company," he said.
"If you are concerned about your price point, talk to your insurance representatives about your coverage, about the different products you have, and how you may be able to tailor that to better meet your needs."
Increase your deductible
Choosing a higher deductible — the amount a customer agrees to pay out of pocket before an insurance company pays the remainder — is one way to lower costs.
"It used to be that deductibles around $250 were kind of commonplace. Then it went up to $500, then $1,000. Now, it's not uncommon to hear people having $2,500 deductibles, $5,000," in order to bring down the premium, Gemayel said.
Consider how much you drive
Usage is another factor to consider.
"If you're only driving a couple times a week — running a couple errands or whatever — the likelihood of you getting into an accident is much smaller than if you were commuting to work through rush hour every day," Gemayel explained.
Perhaps you're working from home more, taking public transit or cycling to the office. Gemayel suggests looking into "pay-as-you-go" insurance, where providers track your mileage through an in-car device.
You only pay for the kilometres you drive, though your total mileage must stay below a certain threshold to find savings.
Consider dropping collision coverage
If a car is 15 years or older, Gemayel suggests consulting a broker or advisor to discuss the value of your vehicle and your risk tolerance for dropping collision coverage, which helps pay for car repairs or replacement in case of damage from a collision.
That could reduce your premiums by 30 per cent or more, he estimates, though what car you have and your driving record would also be considered.
When she was on a tight budget — and Maxwell close to 20 years old — Kardal decided to drop collision.
"If you are ridiculously broke … like broke like I was, maybe skip collision and skip the comprehensive. And if that buys you a couple extra cups of noodles, then that's a win," she said.
But she also warned about carefully weighing the risk.
"If you're in a collision and then you need that [insurance] money from the collision to get you to your next vehicle, unless you have that money somewhere else available to you immediately, you are kind of screwing yourself over."
Good driver? You could be rewarded
Newer insurance offerings may also provide savings. For instance, another type of usage-based insurance involves tracking your driving habits.
A mobile app or in-car device gathers data over time about what time of day you typically drive and instances of hard braking, speeding, hard acceleration and other actions "known to cause accidents," Gemayel explained.
"If I drive well … I can bring down the cost of my car insurance. And for some insurance companies, it's 25 per cent. It can be considerable."
While careful driving can reward you with lower premiums, if the collected data reveals a pattern of driving deemed risky or unsafe, that could mean getting penalized with surcharges once renewal time comes around.
Sutherland also noted that this usage-based offering isn't yet available everywhere in Canada.
Reviewing one's insurance policy each year isn't exciting, even to "an insurance guy," Gemayel admitted.
"But those that have insurance and those that used the insurance — that have had claims — are extremely thankful for the fact."
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Globe and Mail
17 minutes ago
- Globe and Mail
Worried about financial scams and bad advice? Stick to the investing basics
The investment industry is complex, confusing and intimidating for many people, and it's made worse by fraud, bad advice and high-risk investments. This combination of factors can be such a turnoff that some people avoid investing altogether. And that's a problem because it means they miss out on the opportunity to build their savings, which is a crucial part of having enough money for life's big expenses like postsecondary education and retirement. While it would be great if fraudsters disappeared, this isn't going to happen. The scams become more believable all the time and have increased their reach thanks to social media. A recent example is the David Rosenberg scam, where his image was used to convince investors to buy high-risk stocks. There are things that social-media platforms and regulators can do to curb the targeting of investors, but scammers will always find a way around roadblocks, so individuals need to figure out how to avoid falling victim. David Rosenberg says investment scam using his name bilked victims out of hundreds of thousands of dollars Unfortunately, many people feel ill-equipped to do so, with only 51 per cent of Canadians saying they have an understanding of investing. However, there are a few simple principles that everyone can follow. The surest way to avoid fraudulent and high-risk investments is to stick with the basics. While some people enjoy wading into the world of individual stocks, cryptocurrencies, and hedge funds, all anyone needs are guaranteed investment certificates (GICs), mutual funds and exchange-traded funds (ETFs). GICs are wonderfully simple and easy-to-understand products issued by financial institutions, making them safe and reliable. Mutual funds and ETFs are subject to regulation that requires the disclosure of standardized information in an easy-to-access format. This transparency keeps the financial companies accountable and gives investors the information they need to make good decisions. Once you start looking at unregulated investments (like private mortgages) or less regulated products (like hedge funds), you open yourself up to the risk of fraud, mismanagement and ultimately, losing money. Knowing what a reasonable rate of return is will also protect you from being lured into high-risk investments. A realistic rate of return on a portfolio of global stocks – which can be in the form of equity mutual funds or ETFs – is about 8 per cent per year on average. This is based on the historic returns of the U.S., Canadian and international stock markets. An investment that is touted as generating a significantly higher return than that should be questioned. You were targeted in a scam. Is your bank liable for the losses? The basic investment principle of risk and return says that you need to take on more risk to generate a higher return. While this principle works very well when it comes to GICs (low risk/low return) versus stocks (higher risk/higher return), unproven investments without a long track record cannot show this to be true. If an investment promises a high return, you have to question what kind of risk is being taken to generate that return – and that's not a risk that most people can afford to take. A good investment shouldn't need to be sold to you. There's a difference between getting advice on an investment and being sold an investment. Getting advice means someone is explaining what the product is, how much risk there is involved, how it has performed in the past, why it fits in with your investment plan, and how much it costs. Being sold an investment requires a marketing strategy: a way to grab your attention, hook you in, and ultimately convince you that you should buy it. Some signs to look out for that you are being sold an investment are eye-catching phrases like 'investment opportunity,' a sense of exclusivity or being let in on a secret, a promise of high returns, and a pushy or persistent salesperson – which can be anyone from an investment adviser to someone you met at the dog park. Investing is simple and there are no shortcuts to earning high returns. If you remember this, you should be able to spot a scammer from a mile away. Anita Bruinsma is a Toronto-based financial coach and a parent of two teenage boys. You can find her at Clarity Personal Finance.


CTV News
an hour ago
- CTV News
Manitoba, Saskatchewan invest in Churchill port as trade war drags on
The Port of Churchill, nestled along the shores of Hudson Bay in northern Manitoba, has become an important piece of the puzzle as the Canada-U.S. trade war rages on. Expanding operations in Churchill has taken on new urgency and has been part of the national discussion over the last few months. 'We're building trade-enabling infrastructure for the future,' said Chris Avery, president and CEO of Arctic Gateway Group, which owns and operates the Port of Churchill. The port is currently Canada's only Arctic seaport serviced by rail, offering access to Europe and destinations around the world. 'Building this trade-enabling infrastructure will further enable the vast resources we have in Western Canada (to reach) global markets,' said Avery. The Port of Churchill has a brief operating window each summer —about four and a half months — due to ice in Hudson Bay. However, Avery says a University of Manitoba study shows the port could remain open longer due to climate change. 'Given their study and given the data they've collected for the past 40 years, the sea lanes can probably be open right now, without icebreaker, up to six months of the year,' he said. 'Beyond that - icebreakers can help us lengthen the shipping season to almost year-round.' Last week, Manitoba Premier Wab Kinew and Saskatchewan Premier Scott Moe signed an agreement with Arctic Gateway Group to upgrade infrastructure and modernize supply chains. Saskatchewan will connect producers and exporters to the Arctic trade corridor, and Arctic Gateway Group will be expanding investment in port and rail assets. Churchill Port Port of Churchill workers support arrival of Arctic Supply Ship. (Arctic Gateway Group) Kinew said the deal between the two Prairie provinces is a positive step. 'It's really exciting for Manitoba,' he said. 'It helps us to unlock mining in the North, and more agricultural exports in the South.' In recent years, the federal and provincial governments have invested millions of dollars in both the rail line and the Port in Churchill to build up a proper trade route through the Arctic. In March, Ottawa and the Manitoba government committed nearly $80 million to finish work on the Hudson Bay Railway and continue redevelopment of the Port of Churchill. Premier Kinew at the time said the project would help with long-term economic security. 'The memorandum of understanding is a good reinforcement of what we have been thinking for some time,' said Barry Prentice, a professor of supply chain management at the University of Manitoba. The Port of Churchill has mainly been used for grain shipments in the past but began shipping critical minerals in 2024. Prentice says there is a lot of economic opportunity, not just for Manitoba, but also for Saskatchewan and Alberta to move products through the Hudson Bay. 'You want to move bulk products, especially those that are somewhat storable, and potash fits in that category, minerals, petrochemicals, and lumber too, because they do produce forest products as well,' he said. 'There are lots of things we can move through the port, in addition to grain.' Avery echoed Prentice's statement. 'We expect to have more products that originate from Saskatchewan, come through the Port of Churchill and be exported to global markets as well,' he said. 'So, we'll see that volume grow as we work together and build that traffic, and we'll see the volumes grow, and we'll see different types of commodities go through the port.' All the talk about breathing new life into the Artic comes as welcome news for those living in the North. Port of Churchill Arctic Supply Ship is seen here at Port of Churchill on July 14, 2025. (Arctic Gateway Group) 'It goes to show how much potential our area on Hudson Bay has for shipping, for contributing to Canada's GDP as a whole,' said Joe Stover, a longtime Churchill resident. 'It's good for the country, because it's obviously another outlet for being able to ship — and helps with some of these bottlenecks that you see logistically across the country.' Stover worked at the port for 10 years. While he's happy to see investment and renewed interest in revitalizing the port, he hopes words turn into action. 'Let's just hope that the pressure stays on and things actually get done,' he said. 'We hear lots, in the past — 'Oh, Churchill, it would be great if we could do this. Churchill, Churchill, Churchill. Potential, potential, potential.' Let's just really hope that now this is a dollars-to-donuts, boots-on-the-ground, actual work going to get done.' As for Avery, he said results will start to show in the short term — but the real focus is on building the future. 'We are definitely focused on the medium and long term as well,' he said. 'And building this trade-enabling structure — which will then build more trade and opportunities to export our resources and commodities to global markets.'


CTV News
2 hours ago
- CTV News
‘Something pretty special': N.S. cider appellation is a first in Canada
The Nova Scotia Cider Association has launched Canada's first cider appellation called 'Red Sky.' Poet Comeau, the owner of Lake City Cider and president of the Nova Scotia Cider Association, said the cider showcases the high quality of apples grown in the province. 'I think it's just about looking at what we have here in Nova Scotia and realizing that it's something pretty special,' said Comeau in an interview with CTV's Todd Battis on Friday. 'Red sky at night, sailors' delight. Red sky in the morning, sailors take warning. It's just that connection to where we are and how unique Nova Scotia is.' Comeau said a cider can only be recognized as a 'Red Sky' if it meets certain standards. 'There's quality control, there's a blank tasting and you need to submit samples for the blind tasting to get though the qualifications. There are even things around sugar levels, acid levels, and you need to have a blend of apples and not one particular type.' There are currently nine qualifying ciders available across the province, said Comeau, with all of them being available at the NSLC around the end of August for a short period of time. Reducing interprovincial trade barriers With provinces changing rules around importing and exporting alcohol across the country, Comeau said it's important that Canadian products are being consumed by Canadians. 'I think that the best products that are made in Canada should be enjoyed by Canadians,' she said. 'It's going to take a little bit of time and reworking just because we are used to the way things used to work, but I think the idea about reducing some of those barriers is really about getting great products across Canada.' Comeau said ciders are different from other products as apples cannot grow in every climate. 'Apples don't grow everywhere. I think it makes our product a little more unique. It does create opportunities and markets where maybe they don't have cideries. I think a great way to promote something like 'Red Sky' is with that restaurant experience and pairing it with food and enjoying it with others.' For more Nova Scotia news, visit our dedicated provincial page