If you’re a young driver, you’ve probably been told to be careful about the type of car insurance you choose. But choosing the right auto insurance policy can be tricky, especially if you don’t know where to look. It seems like such a hassle to deal with insurance when all you want to do is a drive, but it’s not something that should be ignored.
In fact, getting the right kind of coverage will save you money in the long run and help keep you safe on the road—so let’s take a look at how to find the best car insurance for young drivers.
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Difference between new drivers and young drivers
Insurance companies clearly differentiate between young drivers and new drivers. A new driver can be of any age. A young driver is necessarily a teenager who is just starting to learn how to drive. Thus, the insurance rates for a new driver will not be the same as for a young driver.
Even if you are 30 years old, you can be a new driver. The insurance rates, in this case, will be lower compared to young drivers.
Why are insurance rates for young drivers so high in Canada?
Insurance is a business that rests on the game of probability. In the case of car insurance, it is all about the probability of the driver being involved in an accident.
While experienced drivers exhibit traits of caution and safety while driving, the same cannot be said for young enthusiastic drivers.
Thus, statistically, the chances of a young driver being involved in an accident are higher than an experienced driver. This means that the insurance company will be taking a higher risk when it offers a policy to a young driver.
Therefore, young drivers must shell out a higher premium to compensate for this risk.
Tips to consider
Finding the best car insurance for young and new drivers is no easy task. There are a lot of factors to consider, and it can be overwhelming.
Here are some tips and hacks to help you find the right policy:
1. A good record
One of the most critical and necessary things you can do when looking for car insurance is to stay accident-free. You’ll want to make sure your driving history is clean and accident-free before you start shopping for a new policy.
If you have no history of tickets or accidents, you’ll be eligible for lower rates. If you’ve had any accidents or tickets, it might be worth waiting until after those have been resolved to look at rates again.
2. Car’s safety ratings
Next up: look at safety ratings! If your car is rated as having high crash test scores or low theft risk factors by independent organizations, your premiums should be lower than those of other cars with similar mileage and age. However, the safest cars will cost more than others. This is something to keep in mind when comparing quotes from different providers.
You should also look into safety ratings for your vehicle. You can check online or talk with an insurance agent about how safe your car is compared with other models in its class.
3. Bundle different policies together
It’s often cheaper if you bundle together multiple policies with one provider rather than going with separate companies for each service (like home insurance). Ensure to check all of your options before committing to one company!
Bundle different policies together – like home and auto coverage, when you buy them from the same provider. This can save you money and make it easier to file claims.
Related: How To Get Car Insurance Help
4. Don’t skip the pay schedule
It is important to note that each insurance provider has its own payment schedule for policyholders. Some companies offer monthly payments, while others prefer weekly or even bi-monthly payments.
It is also important to keep in mind that some insurers require you to make a deposit before they can process your application.
You should not skip any payments on your auto insurance policy since it will affect your credit score and make it challenging for you to get an affordable rate in the future.
4. Premium payment in one go
You may find that by making premium payments in one go instead of spreading them out over 12 or more installments, your rates will be lower. If you have financial freedom, try to make the payment in a lump sum.
5. Second-hand cars can be a boon
Second-hand cars are some of the best cars on insurance for young drivers in Canada.
If you choose an older vehicle over something brand-new, you may find yourself paying less for insurance since older cars tend to be cheaper. Moreover, when you’re just learning how to drive, it makes more sense to get a second-hand car. Once you are well versed with the driving regime, you can shift to a new car.
If your parents have an old car sitting in their driveway, consider using it as your first vehicle. It’ll save you money on insurance because it has a lower value than other vehicles on the road. This cost-effectiveness, among many other reasons, makes a second-hand model a top contender for the best car for insurance for young drivers.
6. Fall in the loyalty discount program
Some companies offer discounts if customers have been with them for a long time. This means that if you’ve been driving for a few years, then by now (when you’re about 22-25 years old), it might be worth looking into whether there are any perks available.
Many insurers offer loyalty discounts these days because they know how important it is for their customers to stay with them over time; after all, loyalty does pay off in the end!
Final words
If you’re a young driver in Canada, you know how hard it can be to find the best car insurance for your needs. You need coverage that protects you from all the risks of driving, but that doesn’t break your bank and leave you unable to afford gas for your car.
And if you’re like most young drivers, you’re probably trying to save up for something important—maybe a new car or an apartment, or maybe just some spare cash in case of an emergency. It’s not easy to find an accurate balance between safety and affordability, but the tips mentioned above can help.
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