Car insurance is getting pricier. 5 ways to try lowering your premium

Jenna Kardal was floored by the jaw-dropping initial quote she received when seeking out car insurance — a shock after having driven for years under her parents’ plan and since her car was bought used, already about a decade old.

“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.