Owning a car has always been costly, but in 2024, it hit new heights. With gas, parking, insurance, and maintenance combined, the average cost of car ownership now tops $1,387 a month, with the total a year at well over $16,000.
Adding to the financial pressure, car insurance prices are climbing globally. In Canada, the Insurance Bureau attributes this trend to five key factors: rising car theft, persistent inflation and supply chain issues, escalating legal costs, regulatory interventions, and the increasing sophistication of new vehicle technology leading to increased repair costs.
In light of all this, many drivers are left wondering how to get cheaper car insurance in 2025. If you’re among them, this article offers tips and strategies to help you save some of your hard-earned money. Whether or not every option is practical for your situation, you’ll gain a clearer view of what’s available to help reduce your insurance costs.
- Bundle your home and car insurance policies
- Pay your insurance bill on time
- Maintain a clean driving record
- Maintain a clean insurance record
- Improve your credit score
- Compare rates between insurers
- Install anti-theft devices
- Ask about a multi-car discount
- Pay your premium annually
- Increase your deductible
- Take government-approved driving courses
- Choose the right car
Bundle your home and car insurance policies
If you’re paying for car insurance from one provider and home insurance from another, you could be missing out on easy savings. Traditionally, bundling has meant combining policies with a single insurer, locking you into that provider’s products and prices.
While this can lead to savings, YouSet offers an even more flexible approach. Instead of just comparing traditional single-insurer bundles, we use a “mix and match” method, combining individual car and home insurance policies from different providers. Whether our algorithms recommend a single bundle or a mix, YouSet users typically save an additional 15% when bundling this way.
Pay your insurance bill on time
Paying your insurance bill on time is one of the easiest ways to avoid unnecessary costs and complications. When you miss a payment, you risk incurring late fees, which can quickly add up. More importantly, failing to pay on time can lead to your policy being canceled due to non-payment. This not only leaves you without coverage but it typically makes it harder and more expensive to get a new policy elsewhere. Thankfully, setting up automatic payments or creating payment reminders can help ensure you never miss a payment.
Maintain a clean driving record
If you need further incentive to maintain a clean driving record, consider that doing so can help keep your insurance premiums low. There’s nothing insurance providers view more unfavorably than risk, and drivers with frequent traffic violations, disregard for road rules, or repeated at-fault accidents are typically classified as higher risk, often resulting in increased premiums. So if your driving record is exemplary, it might be worth mentioning to potential insurers.
Maintain a clean insurance record
Insurers have little tolerance for risk, and each time you file a car insurance claim, you increase your perceived risk and potential costs in their eyes. This can lead to higher premiums. While some circumstances necessitate filing a claim, you can avoid making claims for amounts that barely exceed your deductible. If the repair cost for your vehicle falls within the range of your deductible, it is often better to pay for the repairs out of pocket rather than go through your insurance and risk an increase in your premium.
Improve your credit score
Your credit score is another signal insurers look at to assess the level of risk you present as a client. If your credit score is currently less than stellar, focus on paying down high-interest debt, such as credit card balances, and avoid opening new lines of credit. Consistently making regular payments on loans and credit cards can also help. Not only can doing this help you get cheaper car insurance, but it can also open doors to better financing options and increase your overall financial stability.
Compare rates between insurers
The best way of ensuring that you’re getting the best price is to study the market and see what’s being offered. Ask different providers for a free quote, and compare the different types of coverage and price points in order to find the policy that suits you. Since this strategy usually requires quite a bit of time and effort on your end, YouSet can do some of the work of sourcing and comparing quotes from different providers for you.
Install anti-theft devices
With the cost of insurance claims for stolen vehicles soaring to $1.5 billion and a staggering 254% increase in claims nationally since 2018, installing anti-theft devices in your vehicle is more important than ever. Devices such as steering wheel locks and advanced GPS tracking systems can significantly reduce the risk of theft, leading many insurance companies and brokers to reward drivers who install them with discounts.
Ask about a multi-car discount
If you live in a household with multiple cars, it’s worth asking insurers if they’ll provide a discount for insuring multiple cars or drivers with them. There are usually certain requirements in order for you to qualify for this kind of deal, such as all drivers must live at the same address and/or be related by blood or by marriage.
Pay your premium annually
When you choose to pay your car insurance premium monthly, you may incur an interest charge ranging from 2% to 4%. So long as you have the financial means to do so, you can avoid this by opting for an annual payment instead. Many insurance companies and brokers allow you to pay the entire premium upfront in a single lump sum, which not only eliminates interest charges but can also qualify you for potential discounts.
Increase your deductible
Choosing a higher car insurance deductible indicates to your insurer that you’re willing to take on more risk upfront, often resulting in lower monthly premiums. However, it’s essential to thoroughly evaluate your financial situation and budget before making this decision. If you cannot comfortably afford to pay the deductible amount out of pocket when filing a claim, consider implementing one or more of the other strategies mentioned instead.
Take government-recognized driving courses
Government-recognized driving courses demonstrate your commitment to safe driving practices, and many insurers offer discounts as a reward. If you recall completing these courses as a student driver, ensure that your insurer is aware to potentially benefit from lower premiums. If you haven’t taken any courses, it may be worthwhile to compare the cost of enrolling in a recognized program with the potential savings on your monthly car insurance bill.
Choose the right car
If you are still in the process of shopping for a car, consider how the make and model of the vehicles you are looking at will impact your insurance premiums, and choose accordingly. For example, opting for a vintage vehicle with hard-to-find parts will likely result in higher insurance quotes compared to selecting a more common, modern vehicle. Insurers typically favor cars that are considered safe, have parts that are easily replaceable, and don’t have any customized features.