If you’re an Ontario driver, you’ve likely noticed the ongoing increase in insurance premiums, amongst other expenses. As insurance premiums continue to climb, Ontario drivers are taking matters into their own hands by raising their deductibles. Between inflation, higher vehicle repair costs, and rising claims, motorists are seeking more practical ways to reduce expenses. As a result, Ontario drivers are increasing their deductibles, making it a popular cost-saving strategy. But is it sensible for your particular situation? Let’s dive into it.
One-Third of Ontario Drivers Have Changed Their Deductibles
A recent survey reveals that one-third of polled Ontario drivers have adjusted their coverage or deductibles as insurance premiums continue to rise. Conducted in late September, the poll surveyed 691 Ontario drivers and found that 33% changed their coverage or deductibles. This makes it the most common way to save on auto insurance.
In most cases, drivers scaled back on optional coverages. Popular choices were collision or comprehensive insurance. This was particularly relevant for older cars, where repair costs may outweigh the car’s value.
Dropping Coverage? Risk Paying More Later
Though removing coverage may seem like a good idea, brokers are warning of the effects. In the future, Ontario drivers who drop optional coverage and increase their deductible may wind up paying for their decisions.
“Drivers are taking bigger risks to manage costs,” says Steven Harris, a licensed 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 incident.”
Though raising deductibles is a common strategy, Harris expresses caution. He states that if a $500 increase only cuts your premium by $20 a year, it could take decades to break even. On top of this, you’d still pay more out of pocket if you end up filing a claim.
More Options For Ontario Drivers
Come July 1st, 2026, more options are coming to the Ontario auto insurance product. With this, drivers may decide to opt out of certain benefits coverage. However, optionality will only end up saving consumers about $100 a year at most.
Auto insurance premiums in Ontario rose by 14.7% in the first quarter of 2025, according to the Applied Systems quarterly Applied Rating Index. In the second quarter, this jumped to 18.5% in Ontario, the highest increase in Canada. According to the survey, 34% of the 691 Ontario drivers report auto insurance is “somewhat affordable,” while 21% say it’s not. Another 12% stated it’s “not affordable at all.”
Younger Drivers Hit Hardest
Younger drivers are hit the hardest. A recent report from Rates.ca found that a 20-year-old Ontario driver who is new could end up paying about $4,000 more a year. This is compared to a 35-year-old Ontario driver who is new with a similar profile.
In the survey mentioned above, 14% state they joined usage-based insurance or telematics programs. 18% report completing a driving course to qualify for a discount. This, in particular, was only beneficial for brand-new drivers newly licensed through the graduated licensing program. Five percent stated themselves as a secondary driver on someone else’s policy.
It’s also worth mentioning that more than one-third (37%) of those surveyed were taking other measures to save money. This can include strategies such as bundling policies, installing anti-theft devices, using winter tires, or simply shopping around for better rates. With this being said, more than 4 in 10 drivers are missing opportunities for cheaper auto insurance.
Ontario Drivers and Rising Deductibles: Conclusion
At the end of the day, increasing your deductible may not be the best long-term method of saving. However, as mentioned above, there are a plethora of methods you can use to save money on your car insurance. Telematics programs, driving courses and simply speaking with your insurance representative can save you a bunch of money in the long run. If you are curious about untapped ways of saving money, don’t hesitate to contact us at isure today!
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