What If I Can't Afford Car Insurance Right Now?

3 minutes can save you hundreds. Enter your postal code below and join thousands of Canadians saving on insurance.

Secure. No Spam. No Fees.

Why You Can Trust MyChoice

MyChoice serves as an independent intermediary between you, financial institutions and licensed professionals without any additional charge to our users. In the interest of transparency, we disclose that we partner with some of the providers we write about – we also list many financial services without any financial gain. MyChoice does not operate a financial institution or brokerage and to ensure accuracy, our content is reviewed by licensed professionals. Our unique position means that we hold no recurring stake in your policy, ensuring our mission to help Canadians make better financial decisions is free of bias or discrimination. 

Article Contents
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on July 13, 2023

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated July 13, 2023

Visit author page

1 minute read

Article Contents

Can’t Afford Car Insurance?

In Canada, it’s illegal to drive a car without insurance. So what happens if you can’t afford your monthly insurance payments? One option is to cancel your insurance and let your car rust in the garage. We don’t recommend that, so we’ve got some alternative options for you to try first.

There’s nothing worse than looking at your bank account and thinking, “I can’t afford car insurance this month.” Missing an insurance payment can raise your monthly rates. It can even affect your ability to get insurance later on. If the situation is temporary, consider borrowing money until you can get back on your feet.

Some Options When You Can’t Afford Auto Insurance

If your situation is going to last for longer than a month, your first step should be to contact your insurance company. Most companies are willing to work with you to reduce your rates. They may offer to reduce your coverage, raise your deductible, or find other ways to save you money. All you need is the bare minimum coverage to be able to drive legally.

You should also look at what discounts your insurance offers. Many insurance companies offer discounts for safety features and reduced mileage. You may not have paid attention to them before, but they can make a big difference to your overall rate.

Congratulations! You made it to the end!

Now, here is the easy part: complete your quote in under 2 minutes

Discover More About

Ontario’s no-fault insurance system will change, effective July 1, 2026. Read on to learn how these reforms will affect your insurance policy.
A tire blowout can catch you off guard when you least expect it. Learn how to avoid it and what you can do if you have one.
If you drive an older vehicle, you might wonder whether collision coverage is still necessary. Learn the basics to decide whether to keep your policy.

Even More Ways To Save