If you are driving less than you used to, you are not alone. Remote work, hybrid schedules, retirement, lifestyle changes, and rising vehicle costs have encouraged many Ontario drivers to spend less time behind the wheel. Naturally, many wonder whether driving fewer kilometres can reduce their car insurance premium.

In many cases, driving less can help lower your insurance costs, but the impact depends on a variety of factors. How many kilometres you drive annually, how your insurer rates mileage, your vehicle, driving history, and whether you qualify for low-mileage or usage-based programs can all influence what you pay.

"Driving less can be a meaningful detail, but it is not the only detail an insurer considers. The best first step is making sure your policy reflects how you actually use your vehicle today."

Heather Asmussen, Manager, Digital Sales, Western Financial Group

Why Mileage Matters to Insurance Companies

Annual mileage helps insurers estimate how much time your vehicle spends on the road. Generally, drivers who travel long distances each year have greater exposure to traffic, weather conditions, and potential collisions than drivers who use their vehicles occasionally.

More kilometres often mean more opportunities for claims involving accidents, windshield damage, theft, or weather-related incidents. However, lower mileage alone does not automatically guarantee lower premiums. Insurers also evaluate:

• Your driving record and claims history
• Your postal code and location
• The make and model of your vehicle
• Years of driving experience
• Coverage selections and deductibles
• Whether you commute to work or school

For example, a driver with low annual mileage but a newer vehicle in a higher-rated area may still pay more than someone who drives further in a less expensive-to-insure vehicle.

"Mileage is one of those details that can quietly become outdated. If you started working from home, retired, or changed your routine, your broker should know so your policy can accurately reflect your current driving habits."

Heather Asmussen, Manager, Digital Sales, Western Financial Group

What Counts as Low Mileage?

There is no universal definition of low mileage in Ontario. Each insurance company uses its own guidelines and rating factors.

Some insurers may consider less than 12,000 to 15,000 kilometres annually to be below average, while very low mileage may be closer to 5,000 kilometres per year or less. Because insurers often use mileage bands rather than a single threshold, a small reduction in driving may not change your premium, while a significant drop in annual kilometres could.

If your driving habits have changed substantially, it is worth asking your broker how your insurer currently rates your annual mileage.

How Remote Work and Lifestyle Changes May Affect Your Insurance

Many Ontario drivers have experienced major changes in how they use their vehicles. A car that once travelled to an office every day may now be used primarily for errands, appointments, school drop-offs, or occasional weekend trips.

Retiring, moving closer to work, using public transit more often, or reducing the number of vehicles in a household can also affect both mileage and vehicle-use classifications.

Accuracy is important. If you no longer commute daily, your policy should reflect that. Likewise, if you still drive to work a few times each week or use your vehicle for business activities, your insurer should know. Keeping your policy information accurate helps ensure appropriate coverage and can prevent complications if you need to file a claim.

Low-Mileage Discounts and Usage-Based Insurance

Some drivers may qualify for low-mileage discounts or rating adjustments based on how little they drive. Others may benefit from usage-based insurance programs, often called telematics programs.

These programs may use driving information such as:

• Distance driven
• Braking habits
• Acceleration patterns
• Time of day driven
• Overall driving behaviour

For drivers who travel infrequently and maintain safe driving habits, usage-based insurance may provide additional savings opportunities. However, these programs are not ideal for every driver, and it is important to understand how the data is collected and how discounts are calculated before enrolling.

"The cheapest option is not always the best option. Drivers considering usage-based insurance should understand how their data is used and how future changes in driving habits could affect potential savings."

Heather Asmussen, Manager, Digital Sales, Western Financial Group

Why You Still Need Proper Coverage Even If You Drive Less

Driving less does not eliminate the need for adequate insurance protection. Even when parked, your vehicle can still be exposed to risks such as theft, vandalism, hail damage, falling objects, fire, or severe weather events.

Before reducing coverage to lower your premium, consider the financial risks. While removing collision or comprehensive coverage may decrease costs, it could also leave you responsible for significant repair or replacement expenses following a loss.

Increasing your deductible may be a better option for some drivers, provided the amount remains affordable if a claim occurs.

When Should You Update Your Broker?

Contact your Western Financial Group broker if:

• Your annual kilometres have decreased significantly.
• You start working from home.
• You retire or change jobs.
• Your commute changes.
• You begin using public transit more frequently.
• You buy or sell a vehicle.
• You move to a new address.
• You add or remove a driver from your policy.
• You begin using your vehicle for business purposes.

A policy review can help confirm that your coverage remains accurate and determine whether any mileage-related savings opportunities are available. Keeping your insurer informed also helps avoid potential issues during the claims process.

Frequently Asked Questions

Does driving less lower car insurance in Ontario?

It can. Annual mileage is one factor insurers may consider when calculating premiums. However, your vehicle, location, driving history, claims record, coverage choices, and other rating factors also affect pricing.

What counts as low mileage for car insurance?

There is no single standard across all insurers. Some may consider less than 12,000 to 15,000 kilometres annually to be below average, while very low mileage is often closer to 5,000 kilometres per year or less.

Should I tell my broker if I work from home?

Yes. Changes to your commute or annual driving distance should be reported to your broker so your policy accurately reflects how your vehicle is used.

Is usage-based insurance worth considering?

It may be beneficial for low-mileage and safe drivers. These programs can reward positive driving habits, but it is important to understand how they work and what information is collected before enrolling.

Can I reduce coverage because I rarely drive?

You may have options to adjust coverage, but reducing protection can increase your financial exposure after a loss. Discuss any coverage changes with your broker before making a decision.