Insurance savings to look out for in 2025

As we say goodbye to 2024 and welcome 2025, many of us are setting New Year’s resolutions—saving money often being at the top of the list.

While insurance is a necessary expense, it doesn’t mean you can’t save. With rising premiums making headlines, we’ve put together the ultimate guide to help you save on your insurance in 2025. Packed with our best tips and available discounts, it’s everything you need to kick off the year with smarter spending.

Your insurance budget could amount to thousands of dollars annually, depending on your assets, properties, and other factors. In Ontario, the average car insurance premium now exceeds $2,000 per year, with home insurance policies reaching similar averages.

Finding ways to save on insurance can make a significant difference over time. Plus, with the cost of everything on the rise, staying on top of current insurance discounts is a great way to save money and get better coverage. Here’s a list of savings advice and discounts to cut costs on your car insurance, home insurance, and even motorcycle insurance this year.

Home insurance is required if you have a mortgage but maintaining coverage even after you’re mortgage-free is essential. Here is a list of the best savings advice and discounts for home insurance:

Some insurance companies will offer discounts for homeowners once they turn 30 or, with some plans, 50. The discount currently varies between 10% and 15%, depending on the insurer.

Your property’s security against theft can impact your insurance rates, so investing in a deterrent like a monitored burglar alarm may qualify you for a discount. Not all systems are eligible, however, so be sure to check with your broker.

Depending on the system and company, homeowners can benefit from discounts of up to 50%. Some companies will “stack” discounts if a homeowner has a combination of systems.

Plumbing, electrical, and heating systems are integral to an insurance provider’s determination of how likely you are to file a claim. Having these systems renovated so that they’re sound and relatively modern can be a game-changer in your rates, plus it’ll probably keep your utility bills lower!

Newer homes may be discounted because they are less likely to have outdated systems or structural problems. Depending on the age of the home and the insurer, you could be discounted as much as 35% in 2025.

Smoking can pose a risk for fire-related claims, so some property insurance companies offer discounts for non-smokers. If you smoke, consider quitting – or just never start to begin with. Being a non-smoker can win you a discount of up to 5%. With some companies, any smoking in the household (yes – even smoking cannabis) will render the home ineligible for coverage.

Have multiple properties? Whether they’re primary residences or vacation homes, protecting them under the same policy may land you a discount of up to 10%.

Some insurance companies offer discounts for mortgage-free homeowners. Depending on the property and the insurer, this discount can range between 5% and 15%.

Sometimes, it’s better to prevent claims before they happen. Investing in preventative devices – water alarms, backwater valves, sump pumps, leak detection – can all land you a sizeable discount between 5% and up to 40%, depending on the insurer and combination/grade of devices installed.

Insurance companies aren’t allowed to automatically use your current credit score as a rating factor, but they may ask your consent to check. If you have a good credit score (660 or higher) you may be eligible for a discount.

Depending on your current credit score and your provider, you could be eligible to receive a discount of up to 20%.

Unlike home insurance, car insurance is mandatory if you want to drive. Financial Services Authority of Ontario (FSRA) regulates all auto insurance pricing in Ontario. In some places in Ontario, car insurance prices are rising quite a lot.

To save money without sacrificing coverage, we suggest looking into the following savings advice and/or discounts:

If you have more than one vehicle at home insuring it on the same policy or simply with the same provider could get you a discount of up to 25% (depending on the provider) on one or both policies. The exact discount and eligibility vary by insurer.

Are you a student attending school out-of-town or out-of-province? Or is a child of yours planning to attend school away, but perhaps wants to continue driving when visiting home?

You could receive up to 50% off your insurance. Depending on the insurance company, you may need to be under 25, currently attending school, college, or university, and/or have had no chargeable incidents on your record. You may also need to be living 100km or more from the garaging location of the automobile – and with some insurers that discount increases after 160km. Pre-requisites will vary by insurer, so ask a broker to see if you qualify.

Telematics, also called usage-based insurance, is offered by many providers. It prices your policy based on your driving behaviour. This option is beneficial for young drivers with good habits but limited experience, as it can help to avoid penalties based on inexperience and age.

Most insurance companies who offer telematics offer an enrollment discount of 5-10%, with potential savings of up to 30% based on driving behaviour. Poor driving habits may result in rate increases (with some providers) and all rate changes apply at renewal.

Most insurance companies will grant you a discount of between 5% and 15% for using winter tires. Depending on the company, it’s generally required of you to have them installed before a specific deadline. Most of the time, that’s around the early November-mid November range.

Your mileage is another factor that affects your rates. The more you drive, the more you pay. If your rates are higher, you may consider lowering your mileage by carpooling, opting for public transport where possible, or biking/walking. It’s also a huge benefit for the environment.

CAA Pay-As-You-Go is a good option for drivers who use a lower mileage (under 12,000km/year). You can save upwards of 70% on your car insurance with this program.

Is the vehicle you drive more expensive to insure because it’s on Ontario’s most stolen list? If so, this option might be for you.

We’ve discussed Tag at length in previous blogs, like debating whether it’s the best aftermarket anti-theft device. While many aftermarket devices can serve as a deterrent to potential thieves, Tag is generally the most discounted theft deterrent out there. Ask your broker what kind of incentives your provider offers in exchange for installing Tag in your vehicle.

Companies who participate in Tag or similar programs offer a discount of between 10% and 30%. For some companies, the only price change is the removal of the surcharge for high-theft vehicles.

For minor damages, it’s sometimes better to handle the repairs yourself rather than involving insurance. Avoiding unnecessary claims is wise, as they can drive up your rates.

Some companies offer claims-free and conviction-free discounts. These range from 5-20% and will usually apply once the driver has been claim/conviction-free for at least 3 years.

Considering a hybrid or electric vehicle? Great! Many insurers will grant discounts to drivers with either a hybrid electric (vehicles with both gasoline and electric engines) or battery electrical (vehicles with battery packs and no secondary power source) cars. If you drive a hybrid or electric vehicle, some insurance companies may offer a discount of 5% to 10%.

Retirees over 65 who do not earn or receive income from an employer , and who aren’t operating a business, may receive a discount of between 5% and 10% on their auto insurance.

If you’re over 65 and work as a farmer, some insurance companies will grant you a discount of up to 40%.

Motorcycle insurance, much like car insurance, is mandatory. Unless you want to land yourself a nasty fine, you’ll need to buy it to ride your bike.

Many insurance companies offer discounts to riders who successfully complete a Ministry of Ontario-approved training course. These courses can boost your perceived riding experience by 3 to 5 years, potentially lowering your rates by up to 40%.

Because motorcycles can’t be ridden year-round, you’ll need to store them for a few months at a time. Insurance companies like to see that your bike is secure against theft, so while there’s no official discount insurance rates may be lower for riders who make the effort to securely garage their rides.

Whether it’s a home or bike you’re insuring, there are some general discount opportunities you can benefit from that aren’t specific to what’s being insured.

Paying your premiums annually (or even semi-annually) can help you avoid the extra fees that come with monthly payments. Some insurers may even offer a discount for upfront payments, making it a smart way to save.

Depending on the insurer and their financing fees or the discount programs they may offer, this method could save you up to 15% of your total premium.

Increasing your deductible (specifically on collision/comprehensive insurance for auto and motorcycle) can mean paying more if you need to file a claim, but your monthly premiums will be lower.

For home, auto, and motorcycle, being part of an approved group may win you a discount of between 5% and 10%. Approved groups, associations, and clubs vary by insurance company, so mentioning to a broker any enrolments or memberships you have when shopping for insurance could help you save some money.

Coming up on your third year of being with the same insurance provider? Ask about the loyalty discount. Most insurance providers will offer a discount of 5% once you’ve been a customer for three or more consecutive years. Discuss this option with a broker, as the loyalty discount won’t necessarily outweigh the savings you could find by switching to a new provider.

Bundling can help you save on home, auto, and motorcycle insurance. Bundling policies with the same provider is one of the best ways to save. It’s more convenient for claims and payments, and many providers offer discounted premiums as an incentive.

Depending on the policies being bundled, most customers can expect to qualify for a discount between 2% – 15%. Some companies will also offer discount bundles combining home and/or auto with watercraft, trailer, and more. Certain companies will offer up to a 40% discount on your motorcycle insurance for bundling with an auto policy, plus another 10% for bundling with your home.

Shopping the market is one of the best ways to secure a great deal on any type of insurance. At Mitch Insurance, we partner with some of Canada’s top carriers and handle the shopping for you, finding the best possible rate. Give us a call!

We want to help you kickoff 2025 with unbeatable deals! Get in touch with a Mitch insurance broker to review your insurance today.

We work with dozens of insurance providers across the province to offer you a wide range of great insurance options. Wishing you a Happy New Year!