Topic: Saving on Living Costs · Part 4 of 7 · 🟢 Basic

In one sentence

This post shows how to compare transit, a car and other ways to get around, so you can choose the one that fits your life and your budget.

Words to know

• Monthly pass: one payment that lets you ride buses and trains as often as you like for a month.
• Fare: the price of one transit ride.
• Depreciation: the value a car loses every year as it gets older. You don’t see it on a bill, but it is a real cost.
• Premium: the price you pay for insurance, usually every month or once a year.
• Car-share: a service where you rent a car for a few hours or a day, often through an app.

Step 1: Find out what transit costs in your city

Most Canadian cities have buses, and the bigger ones also have trains or subways. Prices are different in every city. Look at your transit agency’s website for three things:

• The price of one ride and the price of a monthly pass.
• How many rides a month make the pass cheaper. If you ride to work and back on most weekdays, a pass often wins.
• Discounts for youth, students, seniors and people with low income.

Many cities have a low-income transit program. Here are two examples. Toronto’s Fair Pass is for eligible residents aged 20 to 64. It takes 21% off the TTC adult monthly pass and 36% off single adult fares. Calgary’s Low Income Monthly Pass uses a sliding scale: the less you earn, the less you pay. In Calgary you apply through the City’s Fair Entry program. Search your city’s name plus “low income transit” to see if a program exists where you live.

Step 2: Count the true cost of a car

A car can be very useful, especially in small towns or for shift work. But the car payment is only one part of the cost. Before you buy, add up everything:

• Car loan or lease payment.
• Insurance. For new drivers, this can be one of the biggest costs.
• Gas.
• Maintenance: oil changes, tires, winter tires and repairs.
• Parking at home, at work or downtown.
• Registration, licence plates and the driver’s licence.
• Depreciation: the value the car loses each year.

For help buying the car itself, see Buying your first car without overpaying.

Step 3: Shop around for car insurance

Car insurance prices change a lot from one company to another. In a few provinces, basic insurance comes from a government insurer, and you can still compare extra coverage. In the other provinces, private companies compete for your business. Here is how to shop:

• Get at least three quotes. A quote is a price offer. You can ask an insurance broker, who compares several companies for you, or ask companies directly.
• Ask if they count your driving experience from another country. Bring a letter from your old insurer if you have one. It can lower your price.
• Ask about discounts: winter tires, bundling home and car insurance, a good driving record, or a driving course.
• Compare the same coverage and the same deductible (the amount you pay yourself before insurance pays).
• Get new quotes every year before your policy renews.

Step 4: Use less gas

Natural Resources Canada says these habits can lower fuel use by up to 25%:

• Accelerate gently and keep a steady speed.
• Slow down on the highway. At 120 km/h, most vehicles use about 20% more fuel than at 100 km/h.
• Turn off the engine if you stop for more than 60 seconds, except in traffic.
• Check your tire pressure every month. Low tires use more fuel.
• Take off roof racks and heavy things you don’t need.

Step 5: Mix and match other options

You don’t have to choose only one way to travel. Many people combine a few:

• Carpooling: share rides to work with coworkers and split the gas. Some cities and employers have ride-matching programs.
• Car-share: pay only when you use a car, for a few hours or a day. Good for big shopping trips or weekends.
• Bike-share and your own bike: cheap for short trips in warm months. A helmet, a lock and lights are worth the cost.
• Walking: free, and a nice way to learn your neighbourhood.

Example

Here is a simple monthly comparison. These are made-up round numbers to show the math. Your real prices will be different.

Cost each month	Owning a car	Transit plus car-share
Car payment	$400	$0
Insurance	$200	$0
Gas	$150	$0
Maintenance and repairs	$50	$0
Parking	$50	$0
Monthly transit pass	$0	$150
Car-share, two trips	$0	$80
Total	$850	$230

Owning the car: $400 + $200 + $150 + $50 + $50 = $850 a month. Transit plus car-share: $150 + $80 = $230 a month. The difference is $850 − $230 = $620 a month, or $620 × 12 = $7,440 a year. And the car also loses value every year (depreciation), which is not in this table. A car can still be the right choice. Just make it a choice you made with all the numbers.

Common mistakes

• Looking only at the car payment and forgetting insurance, parking and repairs.
• Buying a car before getting an insurance quote. The quote can change your mind.
• Paying single fares every day when a monthly pass would cost less.
• Not checking if you qualify for a low-income or student transit discount.

✅ My checklist

☐ I checked the price of a single fare and a monthly pass in my city
☐ I searched for a low-income or student transit discount
☐ I added up the full monthly cost of a car, not just the payment
☐ I got at least three insurance quotes before buying a car
☐ I tried one new habit to use less gas

Next in this topic → Shopping smarter: sales seasons, second-hand and price adjustments

Back to the topic → Saving on Living Costs

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There are no affiliate or referral links in this post. This is general information, not financial, tax or legal advice; everyone’s situation is different. Figures were checked in October 2026 and can change.

Sources: TTC Fair Pass Transit Discount Program · City of Calgary: Low Income Monthly Pass sliding scale · Natural Resources Canada: Fuel-efficient driving techniques