Toronto, Ontario -- A third of Ontario's drivers have reduced coverage or raised deductibles in order to save on auto insurance in the past year, a new survey from LowestRates.ca has found.
The survey found that 33 percent of drivers have adjusted their policies as premiums continue to rise — up 14.7 percent year-over-year in the first quarter of 2025 and 18.5 percent in the second, the fastest increase in Canada. Many drivers are dropping optional coverage such as collision or comprehensive insurance, particularly for older cars where repair costs can exceed the vehicle’s value.
“Drivers are taking bigger risks to manage costs,” said Steven Harris, licensed insurance broker and LowestRates.ca expert. “With used vehicles holding more value than before, cutting collision or comprehensive coverage can backfire. You might save a few hundred dollars a year but face thousands in repair or replacement costs after an accident.”
Raising deductibles is another common approach, but Harris warned that it may not always pay off. “If a $500 increase only cuts your premium by $20 a year, it could take decades to break even, and you’ll still pay more out of pocket if you file a claim,” he said.
The survey also found that 14 percent of respondents have joined telematics or usage-based programs, which reward drivers for good behaviour on the road by reducing premiums.
These aren't the only strategies Ontarians are using to reduce their insurance bills. About 18 percent have completed a Ministry-approved driving course for discounts and five percent list themselves as secondary drivers on someone else’s policy. About 42 percent of drivers have not taken action to lower premiums.
