Car Insurance for New or Young Drivers in Canada
If you are under the age of 25 then you can expect to pay a pretty high price when it comes to car insurance in Canada. Teens pay even more than drivers in their 20’s. The biggest reason for this is lack of experience. If you have been driving for decades then you have a much better level of experience when it comes to driving in all sorts of conditions whether it be city driving, suburban driving, bad weather, etc. The same level of coverage is usually provided as older drivers receive but with a much higher premium. While this all might sound very stereotypical, there is proof in the statistics when it comes to new driver car insurance. Statistics have shown that the age of 25 is typically the point where drivers start to become more experienced and are involved in less accidents. Under the age of 25 you can expect to pay a premium for insurance. Over the age of 25 you will see the prices start to go down quite a bit and this will continue on into the future as you gain more experience as a driver.
Enter your postal code below and give our quoting tool a try to compare rates from the top insurance providers in Canada. We save our new and young drivers around $700 on average, just by comparing their options in one place!
Car Insurance for New Drivers: Young and Teen Drivers
There are a number of different factors that contribute to the quote you will receive for a new driver when it comes to vehicle insurance. Young drivers tend to be in a risk pool because of their age, but there are a number of different specifics that an insurance company will consider when they are offering up insurance for someone who has only been driving for a few years. There is typically a base rate that most insurance companies will follow. Things like gender, age, location of home, record of driving, history of claims and type of vehicle will make that base rate go up or down depending on the details.
How much Coverage do New Drivers Need?
Car Insurance for Young Drivers comes in many different forms. When you first sign up for a policy you will be asked to read through all of the details of your insurance. Different policies are usually rolled up into one package and the type of coverage that you receive can be very different from one company to the next. The most typical and comprehensive coverage will include things like:
If you are involved in an accident that you are found to be at fault for, you can utilize your liability coverage to cover any expenses that are related to this accident. The money will go directly to the people that you inconvenienced or injured. You cannot use this type of coverage for the people in your own vehicle since you were the one who put your passengers in danger.
If you are at fault during an accident this is coverage that will pay for the other vehicle involved to be fixed. There is usually a maximum amount of money that will be paid out on your behalf.
Personal Injury Protection
This is coverage for you and your passengers should you incur any kind of medical expenses after an accident. Sometimes a policy may provide you with lost wages you missed because of the accident.
This is the portion of your insurance that will pay to have your vehicle repaired after an accident. Usually you will be directed to a certain body shop that works directly with your insurance company to process your claim.
Choosing the Best Car Insurance for New Drivers
There is a lot to consider when it comes to selecting a vehicle insurance policy when you are new to driving. Even experienced drivers have a hard time deciding what type of coverage they need and how much they are willing to pay for it. As a new driver there is a lot of new information that has to be understood. It is a good idea to have a parent or trusted adult help with this process and obtain a few different quotes to see what different coverage options include. Not every policy is created equally. If you are on a budget take some time to think about what you think the most important policy details are for you as a driver.
How much does Car Insurance Cost for New drivers?
Unfortunately, there isn’t one specific answer to this question. Because there are so many different factors that contribute to the cost of auto insurance, prices will vary all over Ontario and Canada in general. For example, in Ontario, Vaughan and Brampton are two of the highest priced areas for new drivers when it comes to insurance whereas Guelph is considered more affordable. These differences also apply to more experienced drivers and some policies can cost double in areas considered higher risk. As a new driver there is often a premium added to a policy to make the rate go up but not always immediately. That being said, there are steps you can take to keep your rates to a minimum like keeping your record clean and even considering a defensive driving course.
When does car insurance for new drivers become cheaper?
While statistics do show that policies tend to go down after the age of 25, there is no magic number that insurance providers follow when it comes to predicting cheaper rates. Initially, a drop in your yearly quote will be seen when it comes time to renew the policy for the very first time. If there are no issues with a driver’s record over the next few years then rates will continue to go down slightly. It is important to keep in mind that there aren’t set percentages that rates decrease each year. The sooner you get insurance, the sooner you can begin to build up a good reputation that will contribute to lower rates later on down the road.
Get a Great Quote on Car Insurance for New or Young Drivers
Once you have given some thought to what type of vehicle insurance you think you need, you can start the process of comparing car insurance for young drivers with us. Allowing some time to do research is important because of all the different policies that are out there. We provide a range of quotes from a wide range of insurance providers, so take a look then select the policy that’s right for you.