Fewer Kilometres, More Savings? How Mileage Affects Your Car Insurance
Does how much you drive actually affect what you pay for car insurance? The answer, in many cases, is yes.
Insurance companies determine car insurance premiums based on the likelihood of risk associated with a driver getting into an accident while on the road. Factors such as your age, where you live, your driving history, your vehicle’s age and model, and how much you travel in a given year will all help determine how much you pay for car insurance.
Western Financial Group, a 100% Canadian company, can help you navigate your car, home, business, and boat insurance during this period of economic uncertainty.
The low-mileage advantage
If you don’t drive much, you could get a discount. Low-mileage drivers, or people who drive fewer than 10,000 kilometres a year, tend to get better rates on car insurance across Canada.
Why? Car insurance premiums are based on risk. The less you drive your car, the lower the risk of you getting into an accident and needing to make a claim. It's a simple equation: fewer kilometres on the road generally translate to a reduced chance of being involved in a collision.
Calculating your average yearly mileage
According to the Office of Energy Resources and Natural Resources Canada, the average car mileage per year in Canada is about 15,200 km, but driving habits vary across the country. While drivers in Newfoundland and Labrador have the highest yearly mileage at 18,100 km, British Columbian drivers have the lowest mileage at 13,100 km per year. Ontario is in the middle, with average mileage calculated at around 16,000 km.
Understanding your driving habits is the first step in potentially saving on your car insurance. You can figure out your average number of kilometres driven yearly by following these steps:
- Figure out your work commute: Multiply the number of kilometres for a one-way trip by 2 (to account for the return journey).
- For example, if your commute is 40 kilometres and you work five days a week, you would multiply 40 by two, then again by five. This comes out to 400 km per week.
- Figure out your weekend driving: Estimate the number of kilometres you typically drive on weekends and multiply this by 104 (the approximate number of weekend days per year). Take into account regular errands, social activities, and leisure trips.
- Factor in seasonal variations: Consider any differences in your driving habits during different times of the year. Do you drive more during the summer for vacations or less during the winter due to weather? Adjust your weekend mileage calculation accordingly.
By adding up your estimated weekly commute mileage and your annual weekend mileage, you can get a good approximation of your total kilometres driven per year. If this number falls below the 10,000 km threshold set by some insurers, be sure to mention it to your Western Financial Group car insurance expert when you get a quote!
Other factors influencing your premium
While your mileage is a big factor in the pricing of your car insurance, it's just one of many. Here's a look at some other elements that insurance companies consider:
Vehicle age
Brand new cars are simply more expensive to insure. In Ontario, for example, new cars cost an average $2,929 to insure per year. If you own a vehicle that is 5 years old, you can expect to pay a yearly average of $2,520 for your car insurance. If your vehicle is 10 years old, you can save nearly $800 per year compared to a brand new car as the average insurance premium cost for a 10-year-old vehicle in Ontario is around $2,121. This is often due to the higher repair or replacement costs associated with newer vehicles.
Location
Does where you live affect your car insurance? Absolutely. An insurance provider will use your home address to apply risk data based on your specific postal code. This risk data includes stats on the number of car accidents and thefts that have been recorded near you.
Urban areas have higher populations than rural areas, which translates to more cars on the road. It follows that you are at an increased risk of getting into a car accident and having to file a claim if you live in a city. For this reason, insurance premiums tend to be higher for drivers who live in major cities in Canada.
The province or territory you live in also has the ability to affect how much your auto insurance policy costs.
In 2025, Ontario and Alberta generally have the highest car insurance premiums in Canada. Other provinces with high premiums include British Columbia, Nova Scotia, and Newfoundland and Labrador. Quebec and Manitoba are among the provinces with the lowest car insurance rates in Canada.
While insurance premiums for those in rural areas might be cheaper, they can also be impacted by how far you have to drive each day (those in rural areas may have to drive longer distances, on average), the conditions of the road (there might be less road maintenance in rural areas), and how at-risk you are for damage to your vehicle caused by collisions with animals or natural disasters, like wildfires.
The climate where you live factors in too. If you have comprehensive coverage, then living in an area prone to weather-related incidents like floods or fires can increase the risk of your vehicle being damaged.
Does being married affect your car insurance?
Yes, in some regions and with certain insurers, being married can mean you pay less on car insurance. Insurance companies consider married couples to be more responsible drivers who are less likely to get into accidents, based on the data available. This is why common law and married couples sometimes get a cheaper rate.
Finding the right coverage for you
Understanding how your mileage and other factors influence your car insurance rates will help you find the right coverage at the right price. At Western, we encourage you to discuss your driving habits with one of our knowledgeable brokers. An insurance broker can shop around different insurance companies to find the plan that fits your life, whether you’re single, married, or it’s complicated, and explore potential discounts you may be eligible for, including those for low mileage.
Drive smart, drive safe, and let us help you find the car insurance that suits your needs. Contact us today for a personalized quote!
Why Western?
100% Canadian!
Get the best car insurance
We’ll help you save
Insuring Canadians for over 100 years!
