15 Cheapest Auto Insurance Companies for College Students in Canada

For many college and university students in Canada, the cost of car insurance can feel overwhelming. Young drivers often face some of the highest premiums in the country due to limited driving experience and higher perceived risk. Balancing tuition fees, textbooks, and living expenses makes finding affordable auto insurance a top priority.

The good news is that there are several cheap auto insurance companies for college students in Canada offering discounts, flexible plans, and programs designed to lower costs.

This comprehensive guide highlights the 15 cheapest auto insurance companies for college students in Canada, along with tips to help you save even more on premiums.

Why Auto Insurance Costs Are High for College Students in Canada

Main reasons for higher rates

1. Limited driving experience: Students typically have fewer years behind the wheel, which increases perceived risk.

2. Higher claims rate: Young drivers are statistically more likely to be involved in accidents.

3. Vehicle usage: Students often drive long distances to school, work, and social activities.

4. Low credit or insurance history: Many students lack a strong credit profile or continuous insurance record, which can raise premiums.

What to Look for in Auto Insurance as a Student in Canada

When buying car insurance in Canada, focus on value, not just the lowest price.

Key factors to consider:

• Mandatory liability coverage: Covers third-party injury and property damage (required in every province).

• Collision and comprehensive coverage: Protects your own car but may be optional for older vehicles.

• Student discounts: Many companies offer lower rates for good grades or being away at school.

• Usage-based telematics programs: Apps that track safe driving behaviour can lead to substantial savings.

• Monthly payment options: Avoid large upfront costs by choosing companies that allow affordable monthly payments.

Summary Table: 15 Cheapest Auto Insurance Companies for College Students in Canada

Premiums are estimates for a 20-year-old college student with a clean driving record. Rates vary by province, coverage, and vehicle type.

Detailed Reviews: 15 Cheapest Auto Insurance Companies for College Students in Canada

1. TD Insurance

TD Insurance is one of the largest auto insurers in Canada and is popular among students for its competitive pricing.

• Average premium: $1,600–$2,400 annually.

• Discounts: Good student discount, multi-policy savings, and the MyAdvantage telematics app.

• Why it’s great for students: Easy online tools and flexible monthly payment options.

2. Belairdirect

Belairdirect is known for its Ajusto app, which rewards safe driving behaviour.

• Premium range: $1,650–$2,450 annually.

• Benefits: Student and young driver discounts, online claims tracking, and adjustable deductibles.

• Ideal for: Students confident in their driving who can save with telematics.

3. Sonnet Insurance

Sonnet is a fully online insurance provider offering transparent pricing.

• Average annual cost: $1,700–$2,500.

• Features: Easy-to-understand policies, student discounts, and no broker fees.

• Why students like it: Fast online sign-up and competitive rates for low-risk drivers.

4. Intact Insurance

Intact is Canada’s largest property and casualty insurer and offers strong telematics-based savings.

• Premiums: $1,650–$2,500 annually.

• Features: myDrive app rewards safe driving, flexible coverage options, and young driver discounts.

• Best for: Students who want flexible policy options and a reliable provider.

5. Economical Insurance

Economical offers budget-friendly coverage with discounts for young drivers.

• Average cost: $1,700–$2,550 annually.

• Why it’s affordable: Offers good student and multi-vehicle discounts.

• Best for: Students looking for solid coverage with flexible payments.

6. Desjardins Insurance

Desjardins is well-known for its Ajusto telematics app that rewards safe drivers.

• Premiums: $1,650–$2,500 annually.

• Perks: Student and multi-policy discounts, strong customer support.

• Why it’s popular: Great for students who bundle renters or home insurance.

7. Aviva Canada

Aviva provides competitive rates and student-friendly discounts.

• Premium range: $1,700–$2,550 annually.

• Highlights: Away-from-home discount, telematics program, and accident forgiveness options.

• Best for: Students attending school far from home.

8. Co-operators Insurance

Co-operators is a community-focused insurer with good young driver support.

• Average cost: $1,650–$2,450 annually.

• Benefits: Young driver coaching, bundling discounts, and flexible deductibles.

• Why students choose it: Strong reputation for customer service.

9. Allstate Canada

Allstate is well-known for its Drivewise telematics app.

• Premiums: $1,700–$2,600 annually.

• Discounts: Good student, safe driver, and multi-policy savings.

• Best for: Students who want online tools and access to in-person agents.

10. RBC Insurance

RBC Insurance offers strong discounts for good students and group plan members.

• Annual premiums: $1,700–$2,600.

• Advantages: Flexible coverage, group rates through universities and alumni networks.

• Best for: Students connected to RBC banking or alumni associations.

11. CAA Insurance

CAA’s MyPace program is perfect for students who drive infrequently.

• Premium range: $1,650–$2,450 annually.

• Unique feature: Pay-as-you-drive model that charges per kilometre.

• Why it works for students: Save money if you drive fewer than 12,000 km annually.

12. Wawanesa Insurance

Wawanesa is popular in Western Canada for its affordable rates and strong service.

• Premiums: $1,700–$2,500 annually.

• Benefits: Good driver discounts and flexible policy options.

• Best for: Students in Manitoba, Saskatchewan, and Alberta.

13. Johnson Insurance

Johnson offers group savings through school and alumni affiliations.

• Premium range: $1,650–$2,450 annually.

• Advantages: Student discounts, accident forgiveness, and group savings.

• Ideal for: Students eligible for group rates through universities.

14. BrokerLink Insurance

BrokerLink compares multiple insurers to find the cheapest student car insurance.

• Average premium: $1,650–$2,500 annually.

• Benefits: Personalized quotes, multi-vehicle savings, and flexible coverage.

• Best for: Students who prefer shopping around for the best rate.

15. Onlia Insurance

Onlia is an online-only insurer with a focus on safe driving rewards.

• Premiums: $1,600–$2,400 annually.

• Features: MyDrive telematics, easy online management, and safe driving bonuses.

• Best for: Ontario students comfortable managing everything online.

Tips to Lower Auto Insurance Costs as a Student in Canada

1. Maintain good grades: Many companies offer 10–25% discounts for a GPA of 3.0 or higher.

2. Drive less: If you don’t need your car often, consider usage-based insurance.

3. Stay on your parents’ policy: Often cheaper than getting your own policy.

4. Bundle with renters insurance: Bundling multiple policies can lead to significant savings.

5. Shop around: Compare quotes from at least 3–5 companies annually.

FAQs: Cheapest Auto Insurance Companies for College Students in Canada

1. Which auto insurance company is cheapest for Canadian students?

TD Insurance, Belairdirect, and CAA Insurance often provide the lowest rates for students.

2. Can I stay on my parents’ insurance while in college?

Yes, as long as your permanent address is the same, you can often remain on their policy.

3. Do good grades help reduce car insurance in Canada?

Yes, most insurers offer good student discounts if you maintain a strong GPA.

4. What is the average cost of car insurance for students in Canada?

Full coverage costs between $1,600 and $2,600 annually, depending on the province and insurer.

5. Should students choose liability-only insurance?

If you have an older car, liability-only may be more affordable, but it won’t cover damage to your own vehicle.

6. Are telematics programs worth it?

Yes, usage-based apps like Ajusto or Drivewise can lower premiums if you drive safely.

7. Can I pause my insurance while away at school?

No, but you can reduce coverage if your car is parked and not used.

8. Are monthly payments available for students?

Yes, most insurers allow monthly payments, though they may include small administrative fees.

9. Do I need to inform my insurer if I move provinces for school?

Yes, car insurance rules vary by province, and you must update your address.

10. Can international students get car insurance in Canada?

Yes, but premiums may be higher if you lack a Canadian driving history.

Conclusion

College students in Canada face some of the highest auto insurance costs, but there are many ways to lower premiums. Choosing one of the 15 cheapest auto insurance companies—like TD Insurance, Belairdirect, Intact, or CAA Insurance—can significantly reduce costs while still providing reliable coverage.

To save the most:

• Maintain good grades.

• Use telematics apps that reward safe driving.

• Stay on your parents’ policy if possible.

• Compare quotes every year to ensure you get the best rate.

By taking advantage of these tips and choosing the right insurer, you can get affordable auto insurance that fits your student budget without sacrificing protection.