Getting The Cheapest Car Insurance for Young Drivers and Teens
Getting the cheapest car insurance for novice drivers and teens in Canada can be a daunting task. With the high cost of insurance premiums across the country, it's no wonder that many parents and young drivers feel overwhelmed when trying to find affordable coverage. However, with a bit of knowledge and some careful planning, it's possible to get car insurance that's both affordable and comprehensive.
In this blog post, we'll explore some of the unique factors that influence the cost of car insurance for young drivers and provide tips on getting the cheapest car insurance possible.
Continue reading to get started!
The cost of car insurance for young drivers in Canada
First, let's take a look at the current state of car insurance premiums for young drivers in Canada. The average cost of auto insurance in Canada is between $1,300 and $1,800 per year. However, this cost can vary widely depending on a wide range of individualized factors, including age, location, driving record, and type of vehicle.
For young drivers specifically, the cost of car insurance is much higher than the average. In fact, young drivers under the age of 25 can expect to pay up to three times as much for car insurance as older, more experienced drivers. This is due to the fact that young motorists are statistically more likely to get into car accidents, making them a higher risk for insurance companies.
Factors that can influence the cost of car insurance for teens and young drivers
There are a wide range of individualized factors that can impact the overall cost of auto insurance for novice drivers. These include:
- Age: As mentioned, younger drivers are considered higher risk by insurance companies and can expect to pay more for coverage.
- Driving experience: Drivers new to the road are also considered a higher risk, as they may not have the same experience and skill as more seasoned drivers.
- Location: Where you live can also impact the cost of car insurance. Drivers living in highly-populated cities or areas with high rates of vehicular theft or accidents may pay more for coverage.
- Type of vehicle: The type of vehicle you drive can also impact the cost of insurance. Sports cars, for example, are generally more expensive to insure than sedans or minivans.
- Driving record: A clean driving record can help lower car insurance costs, while accidents or traffic violations can increase the cost.
- Driver training: Having taken a provincially accredited driver training course lets insurance companies know you've been well trained and lowers insurance costs. Without driver training, expect to pay significantly more.
- Owning your own car and having a separate policy: Owning your own car in your name and having separate insurance from your parents or guardians is significantly more expensive than having a vehicle added to a parent's policy where you can take advantage of multi-car and multi-policy discounts.
- Being a primary driver versus an occasional: Being a primary driver on a vehicle will cost 2-3x more than being a secondary driver on a parents/guardian's vehicle.
Find the best car insurance rates today.
Tips and tricks for getting the cheapest car insurance for young drivers
Despite the higher cost of car insurance for novice drivers, there are several steps that parents and young drivers can take to get the cheapest coverage possible. Here are some useful tips that you should keep in mind:
- Shop around for auto insurance quotes: Don't just settle for the first insurance quote you receive. Shop around and compare prices from several insurers to find a competitive deal on the best young drivers car insurance. You can easily do this by teaming up with an online insurance brokerage, such as Surex, that can provide you with quotes from top-rated insurance companies.
- Sign up for a defensive driving course: Completing a defensive driving course can help lower car insurance costs, as it shows insurance companies that you're committed to being a safe driver. All insurance providers offer a discount for completing this course.
- Increase your deductible: Choosing a higher deductible can help to lower the cost of your monthly premiums. However, it does mean you'll be responsible for paying more out of pocket in the event of an accident. This is a fantastic option for those who can afford to pay higher amounts out of pocket in case of an accident.
- Consider a telematics device: Some insurance companies offer telematics devices that track your driving habits and offer discounts based on safe driving. If you're a safe driver, this could help you to save money on car insurance.
- Choose not to own your own vehicle: If possible, choose not to own your vehicle for a few years and gain driving experience. Be added as an occasional driver onto a parent's policy where they are the primary drivers of their vehicle. This indicates to the insurance company that the parent is still the one using the car the majority of the time, and the young driver uses it on occasion.
- If you must have your own vehicle: There are times when young drivers must have their own vehicle. If possible, register the vehicle in the parent's name and add it to their policy. The young driver can be the primary driver, but having the vehicle added to the parent's policy will maximize bundle discounts with property policies and multi-vehicle discounts. With some companies, this can be up to a 30% discount for the young driver.
Additional ways to save money on auto insurance for young drivers
In addition to the tips listed above, there are a few other things that young drivers and their parents can do to save money on car insurance:
- Choose a safe car: As mentioned earlier, the type of vehicle you drive can significantly impact the cost of auto insurance. Choosing a safe, reliable car with good safety ratings can help to lower your insurance premiums. In the majority of Canadian provinces, the most expensive cars for young drivers to own and insure are Honda Civics, Mitsubishi Lancers, Volkswagen Golfs, pickup trucks and traditional sports cars.
- Consider usage-based insurance: Usage-based insurance (UBI) is a type of car insurance that bases premiums on how often and how well you drive. This could be a good option if you're a safe driver who doesn't drive frequently. Some insurers also offer discounts for using UBI.
- Build a good credit score: Believe it or not, your credit score can affect your car insurance premiums. Depending on the province that you live in, maintaining a good credit score can help to lower your premiums, so it's essential to pay bills on time and avoid overusing your credit cards.
- Maintain a clean driving record: Avoiding accidents and traffic violations is one of the most effective things that you can do if you want to purchase the best car insurance for teens without breaking the bank. Make sure that you follow all of the traffic laws and practice safe driving habits at all times. If a young driver gets a traffic ticket while still holding their learner's permit, this is consider a major conviction with insurance companies and will affect the cost of insurance for the next three years. The cost can be up to a 25 to 50% surcharge.
Getting the cheapest car insurance for teens can be challenging, but it's not impossible. By shopping around, taking a defensive driving course, choosing a safe car, and following other suggestions mentioned in this blog post, young drivers and their parents can save money on car insurance premiums.
It is also important to maintain a clean driving record and good credit score, and consider telematics or usage-based insurance, depending on your situation.
With these tips in mind, you can find affordable car insurance that provides the coverage you need without breaking the bank.
You can save up to 25% when you bundle your policies with your Surex insurance advisor
Whether you’re a teen who’s recently earned their licence or a veteran motorist with decades of experience, it pays to team up with an online insurance brokerage, like Surex.
Our team at Surex works with a variety of the top-rated insurance companies in Canada, like CAA Insurance.
Contact one of our team members today to get started to receive your quotes in ten minutes or less!
