Does Mileage Affect My Car Insurance?

June 16, 2025

Does the number of kilometres you drive annually affect your car insurance? The answer, in many cases, is yes it affects your car insurance premium.

Car insurance premiums are based on risk associated with a driver getting into an accident. Insurance companies look at factors such as your age, where you live, your driving history, your age and model, your marital status, and how much you drive in a given year to determine how much you pay for car insurance.

The advantage of low mileage

Low-mileage drivers, or people who drive fewer than 10,000 kilometres a year, tend to get better rates on car insurance across Canada.

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.

Ask your car insurance provider if you qualify for a discount.

Calculating your average yearly mileage

The average number of kilometres driven yearly 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.

Drivers in Manitoba travel 14,800 km a year.

You can figure out your average number of kilometres driven a year by following these steps:

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.
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.
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 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 Wyatt Dowling car insurance expert when you get a quote or renew your car insurance.

Other factors influencing your car insurance premium

Here's a look at some other elements that insurance companies consider:

Vehicle age

Brand new cars are more expensive to insure. 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.

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.

Does being married affect your car insurance?

Yes, in some regions and with certain insurers, being married can mean you pay less for 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 car insurance rate.

Get 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.

Drive smart, drive safe, and let us help you find the car insurance that suits your needs. Contact us today for a personalized quote!

5 FAQs about car insurance

Should I get comprehensive car insurance?

Comprehensive insurance is optional car insurance and it protects your vehicle from losses unrelated to collision, losses that aren’t the driver’s fault. For example, a tree falling on your car would be a comprehensive claim. If you’re worried about your car getting stolen, make sure to get comprehensive coverage.

Should I get collision insurance for my car?

Collision insurance is optional and it covers damage to your car when it is involved in a collision with another vehicle or object. If you are in an accident, your car insurance policy will cover the cost of repairing your vehicle up to the limit listed in your policy (not including the deductible).

Will past driving offences affect my car insurance?

Any past driving offences can impact your car insurance rates because insurance companies use your driving record to assess your risk. A history of violations or accidents will likely mean higher car insurance premiums.

Can I add a driver to my car insurance policy?

Yes. You can add a driver to your car insurance policy, but adding a driver may increase your insurance premiums because it expands your risk profile.