Can Driving Less Really Reduce Your Premiums?

Drive less and pay less insurance

Updated Nov 4, 2021

With some Ontarians driving much less than they used to because of the COVID-19 pandemic, many are wondering how much the number of kilometres they drive affects their premiums. The answer is, all things considered, not much. The difference in premium between driving 10,000 km a year and 50,000 km a year is between 6 and 19%. On the other hand, if you drive less than 12,000 km a year, you can save as much as 40% with a payment plan called CAA MyPace.

During the COVID-19 pandemic, many Ontarians are driving less, and clearly it has led to a reduction in the overall cost of claims for auto insurance companies. In return, most of those companies have reduced their rates, and in some cases, sent rebate cheques to their customers. But on an individual basis, how much difference does it make if you tell your broker you drive 5,000 km a year or 25,000? And what about that “commute” question? Will you pay a lot more if your daily drive is 35 km as opposed to 5 km? Let’s take a look at some quotes to illustrate the differences.

Driving less than 9k a year and have a clean record? Pay as you go!
km driven per year:
Please select
  • 1000 km
  • 2000 km
  • 3000 km
  • 4000 km
  • 5000 km
  • 6000 km
  • 7000 km
  • 8000 km
  • 8001 km or more

You could be saving 70% per year on your car insurance. Learn more

You could be saving 60% per year on your car insurance. Learn more

You could be saving 50% per year on your car insurance. Learn more

You could be saving 40% per year on your car insurance. Learn more

You could be saving 30% per year on your car insurance. Learn more

You could be saving 25% per year on your car insurance. Learn more

You could be saving 15% per year on your car insurance. Learn more

You could be saving 5% per year on your car insurance. Learn more

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Key Findings

  • The difference in premium between almost not driving at all (3,000 km a year) and driving 50,000 km a year is between 17 and 34%
  • The difference in premium between a moderate-mileage driver (10,000 km a year) and a high-mileage driver (25,000 km a year) is between 6 and 19%
  • Daily commute and total kilometres driven are both factors in pricing
  • If you drive less than 12,000 km a year, you can save 40% on average with CAA MyPace

Does Mileage Affect Different Drivers Differently?

To answer this question, we ran car insurance quotes for 4 different drivers. Based on our sample drivers below, it appears that younger drivers’ premiums are the least affected by the number of kilometres they drive. Which seems pretty fair, given that they tend to pay the highest premiums to begin with.

It also seems that younger drivers’ rates top out around 25,000 or 30,000 km a year, whereas older drivers continue to pay a little more for extra kilometres up to 40,000 or even 50,000 km a year.

Lloydra, 37, married female, Toronto (M4E)

  • Driving for 19 years, clean record
  • (2020 Honda Accord LX 4DR, winter tires)
Daily Commute Annual Kilometres Annual Premium
0 3,000 1310
0 5,000 1336
5 5,000 1401
5 10,000 1401
10 10,000 1401
10 15,000 1436
15 15,000 1469
15 20,000 1469
20 20,000 1469
20 25,000 1505
25 25,000 1536
25 30,000 1536
30 30,000 1536
30 35,000 1536
35 35,000 1536
35 40,000 1536
40 40,000 1536
50 50,000 1536
Top to bottom +17%
Moderate to high +10%

Antoine, 22, single male, Vanier (K1K)

  • G licensed for 4 years, 1 ticket for distracted driving last year
  • (2017 Hyundai Elantra GT GLS 5DR)
Daily Commute Annual Kilometres Annual Premium
0 3,000 1913
0 5,000 1948
5 5,000 2084
5 10,000 2174
10 10,000 2205
10 15,000 2234
15 15,000 2246
15 20,000 2274
20 20,000 2274
20 25,000 2299
25 25,000 2311
25 30,000 2343
30 30,000 2343
30 35,000 2343
35 35,000 2343
35 40,000 2343
40 40,000 2343
50 50,000 2343
Top to bottom +22%
Moderate to high +6%

Ilhan, 51, divorced female, Barrie (L4M)

  • Driving for 35 years, clean record
  • (Drives a 2015 Ford Escape SE 4DR 2WD)
Daily Commute Annual Kilometres Annual Premium
0 3,000 791
0 5,000 805
5 5,000 850
5 10,000 879
10 10,000 915
10 15,000 931
15 15,000 931
15 20,000 951
20 20,000 951
20 25,000 961
25 25,000 988
25 30,000 1,007
30 30,000 1,007
30 35,000 1,007
35 35,000 1,007
35 40,000 1,028
40 40,000 1,028
50 50,000 1,028
Top to bottom +30%
Moderate to high +12%

Gregory, 62, married male, Sudbury (P3A)

  • Driving for 46 years, impaired driving conviction 2 years ago
  • (Drives a 2018 Volvo V90 T6 Wagon AWD, winter tires)
Daily Commute Annual Kilometres Annual Premium
0 3,000 1793
0 5,000 1829
5 5,000 1876
5 10,000 2005
10 10,000 2010
10 15,000 2067
15 15,000 2069
15 20,000 2105
20 20,000 2150
20 25,000 2205
25 25,000 2242
25 30,000 2265
30 30,000 2265
30 35,000 2279
35 35,000 2279
35 40,000 2366
40 40,000 2366
50 50,000 2395
Top to bottom +34%
Moderate to high +19%

If I Only Drive 5,000 KM a Year, Can I Save More?

For drivers who really only use the car to get groceries once a week, there is an innovative insurance payment plan from CAA Insurance that allows you to really cash in on your low-volume driving. CAA MyPace is a program whereby you install a special device in your vehicle that tracks the number of kilometres you drive, and then charges you based on real data from your own car. The savings are purely up to you, but can be significant:

Annual KM Savings
1,000 70%
2,000 60%
3,000 50%
4,000 40%
5,000 30%
6,000 25%
7,000 15%
8,000 5%
9,000 4%
10,000 3%
11,000 1%
11,000+ No savings1

1If you drive more than 12,000 km a year, surcharges apply, and the program is actually more expensive than a traditional CAA policy.


Regardless How Much You Drive, Save With M&W

As licensed insurance brokers, we are specially trained to tailor our insurance offerings to your needs. We work with 40+ different insurance companies, and based on information that you provide, including how much you drive, we will recommend the insurance option that best suits your particular needs, meaning not just the best price, but a package of coverage that meets your needs…at a really great price. Call us today for a bunch of options, a great deal, and service that can’t be beat.

Driving less these days? Now's the best time to save on insurance.

Learn more

Call Mitchell & Whale Insurance Brokers to learn more about CAA's MyPace™
Speak with a broker today: 1-800-731-2228


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