The terms “young driver” and “affordable rates” are rarely seen together. Canadian drivers under 25 are considered high-risk, and insurers use special rates when quoting new drivers policies. We have a few ways young drivers can lower those high rates.
Do not overestimate mileage
List yourself on your parents’ policy first
Take an approved course
Tell your agent about security features
Shop around for insurance
When retrieving auto insurance quotes, details matter: if you are working with an agent or using an online quoting tool, you might assume some of the questions are just filler, but all of your answers are important. Your answers regarding questions on how many kilometres you drive to and from work or school, or how many kilometres you drive annually, are very likely to affect your premiums especially. Limit the number of kilometres you drive and you might qualify as part of a cheaper reduced-risk-due-to-low-mileage insurance bracket.
Principal operators pay much higher rates than occasional operators. If you are on the verge of attaining your permit, have your parents list you as an occasional operator first so that you can gain experience while your rates are still low. Once you have experience, you can get your own policy.
When your insurance company has determined you are more likely – statistically – to have a collision, it’s likely to make you pay high premiums for it. If you want to brush up on your driving skills, reduce your likelihood of getting in a crash and thus get a discount, you can take an approved driver training program. Discounts add up over time, and the skills you will gain help prevent collisions.
Vehicle theft and vandalism are both leading causes of comprehensive claims. When a driver files a comprehensive claim, the insurance company cannot surcharge the policyholder because these claims do not carry fault—which means it must instead recoup its losses by charging people higher premiums. You can combat these increases by having an immobilizer or a local alarm installed in your car: if you let your agent know your car is secure, you could get a discount on your physical damage coverage.
Before you put any of the above tips into practice, try out an insurance aggregator to shop around the market with different insurance companies. Obviously, the most effective way to keep your premiums down is to build a good driving history that is free of vehicular accidents and moving violations. If you keep these tips in mind, comparison-shop, and choose the right coverage limits, you can lower your premiums without putting yourself at risk when you get behind the wheel.