When does car insurance go down?

Whether you've been insured and driving for years or you're new to insurance, you may have some questions around the cost of premiums. One of which may be "when will my insurance costs go down?" Well, it's important to first understand what your premium is so you know what you're paying for. Premiums are what you pay to your insurer to keep your policy active so that you always have coverage to protect you and your vehicle. The cost of your premium, however, can and likely will differ between drivers for a number of different factors. Let's cover some questions you may have about your premium, when it may go down and options on how you can lower your costs.

What factors can affect the cost of my premium?

The car insurance premium you pay is determined by your insurer and can vary from one driver to another. Although your insurer considers multiple factors when calculating your individual premium, here are some of the key considerations they use:

  • The type of car you drive
  • Your location
  • Your driving history
  • The coverage you choose
  • How you use your vehicle

When will my car insurance decrease?

There's no specific point in time when insurance goes down for everyone, and there's no guarantee your premiums will decrease from one term to the next upon renewal. Keep in mind that part of what determines increases or decreases to individual premiums is based on the combined loss experience of your insurer's overall pool of customers. As mentioned above, each driver’s premium is unique, so the timing of when costs may decrease (if at all) will vary from one individual to the next.

Does age impact car insurance costs?

All insurers have different criteria when determining premiums. Age may be a factor for some and it can also vary based on provincial legislation. However, most insurers favour years of experience and driving history as main factors. Why? New drivers can get their license at any age. Whether you're an 18- or 50-year-old getting your license, insurers will consider you a new driver regardless and premiums will reflect that risk. If you are, however, a senior or retiree, some insurers may offer additional discounts. And if your insurer doesn't, you may still want to advise them if you're now retired and used to commute. That way they can adjust the usage on your vehicle which can help lower your premium.

How can I lower my car insurance costs?

The most important thing you can do is keep a clean driving record. That means following the rules of the road to avoid getting any speeding or traffic tickets, license suspensions, or getting into any accidents. These types of incidents impact your record and can cause your premium to increase.

It may also be worth looking into the discounts or savings being offered by your insurer. At TD Insurance, we offer numerous ways to save on your car insurance premiums. Just to name a few, we offer savings for:

  • Those progressing from a G2 license to a G license (Ontario only, conditions apply).
  • Being accident-free for a specified amount of time (province dependent) through our Claims Free Reward.
  • Enrolling in TD MyAdvantage – a voluntary usage-based program, available in Ontario and Quebec
  • Multi-product and/or multi-vehicle discounts.
  • Savings for quoting and/or purchasing your auto insurance online (province dependent).
  • Occasional drivers living away from home and studying full-time at school (conditions apply).

For more savings, check out the list of car insurance discounts offered by TD Insurance.

If you're an existing TD Insurance customer and would like to manage your current policy, you can do so by logging in to MyInsurance anytime, anywhere. If, however, you're not yet insured with us and your current car insurance premium is higher than you'd like, get a quote in minutes to see how you much you could save when you switch to TD Insurance.

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The content on this page is for general information purposes only and does not constitute legal advice. Coverages described herein may be subject to additional eligibility criteria, limitations and exclusions. In the event you make a claim, potential indemnification is also subject to the receivability of the claim and the type of coverage you bought.

In the case of conflict between the content on this page and your policy wordings, your policy wordings shall take precedence. Please speak to an Advisor or consult your policy wordings for further details.