Getting your first car is one of the biggest investments young adults make. Due to the fact that drivers in Canada under the age of 25 are considered to be higher risks, auto insurance companies use special rate calculations to assign risk to policyholders with youthful operators that have little experience driving on public roadways. While not all risk on the road is avoidable, there are several different ways that young drivers throughout Canada can stay legal behind the wheel and still pay affordable rates.
Insurance companies do offer discounts that cater to specific target demographics to make their premiums more competitive for those who qualify and take advantage of them. Before you can take advantage of discounts and lower rating brackets, you need to know that they exist. Here are 5 valuable tips on how young drivers can lower exorbitantly high rate quotes for auto insurance.
Do Not Overestimate Mileage
When you are retrieving auto insurance quotes, a lot of details matter. If you are working with an agent or using an online quoting tool, you might assume that some of the questions are just filler, but all of your answers are important. Here’s a free tool to get a quick insurance quote. When you are asked how many miles you drive to and from work or school, or how many miles you drive annually, these answers can affect your premiums. By limiting the number of miles you drive, you can qualify for low mileage brackets that keep premiums low because the risk is reduced.
Tell Your Agent about Security Features
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 with higher premiums because these claims do not carry fault. This means that insurance companies must recoup their losses by charging people higher premiums, but you combat the premium increases by having an immobiliser or a local alarm. Let your agent know if your car is secure for a discount off of your physical damage coverage.
Get a More Conventional Vehicle
This is one of the ways that saving money on insurance is probably going to annoy you. Every teen wants a certain car, but a lot of them are unaware of how insurance works. If you want a new Corvette or a Ferrari, you are going to be paying a ridiculous amount for the insurance. Sports cars also get into more accidents than normal cars, and younger drivers who buy these must especially be careful.
List Yourself on Your Parent’s Policy First
Principal operators pay much higher rates than occasional operators. If you are on the verge of attaining your permit, have your permits 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.
Take an Approved Course
When you are more likely to have an accident based on the numbers, you are more likely to pay high premiums. If you want to brush up on your skills and get a discount, you can take an approved driver training program. Discounts add up over time, and the skills you will gain help prevent accidents.
Shop Around to Compare the Best Rates
Just because you’re a teenager doesn’t mean all of your insurance rates have to be outrageously expensive. Don’t just get the first quote that comes your way. Shop around for insurance first. While your insurance rates are almost naturally going to be more expensive, you may find that one company is willing to give you a better rate than another. Car insurance companies are extremely competitive, they want to give you the best rate. Take advantage of this and see what you can find.
Don’t be another teenage statistic and get into an accident. Driving carefully is the best way to get your insurance costs to go down. A lot of insurance companies offer discounts for those that are safe drivers. As you continue to drive safely for a few years, you’re going to see your insurance costs shrink to a fairly normal level.
All in all, there are many different ways that young drivers can save on their car insurance. Hopefully, as the years go by and you stop getting into so many accidents, the insurance rates will drop and your kids will be able to get that awesome car they’ve always wanted.
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, compare prices, and choose the right coverage limits, you can lower your premiums without putting yourself at risk when you get behind the wheel.