Having car insurance is mandatory in Canada, even when you are just starting. Car insurance rates will obviously be higher for young drivers compared to more experienced ones.
Car insurance companies calculate insurance premiums depending on your driving habits. The main factors they take into consideration are the driving experience of the applicant and their susceptibility to accidents. According to statistics, approximately 40% of all the speeding drivers involved in an accident were between the ages of 16 and 24.
Thus, most car insurance companies consider students as riskier drivers. This leads to higher annual premiums, which can be as high as $1832 a year.
Thankfully, this doesn’t mean that you can’t get access to a student car insurance discount from your provider. If you are looking for affordable student car insurance in Canada, visit a reputable insurance brokerage, like Surex.
What does student car insurance constitute?
A students car insurance will be offering the same coverage as the others:
- Third-party liability- This is mandatory coverage throughout Canada. The student will be protected even if they are the reason for the accident in which a third party is injured or property is damaged.
- Collision Coverage – Collision coverage will pay for the cost of repairing any damage to your car if you are involved in an accident.
- Uninsured motorist – If the policyholder is hit by a driver who does not have insurance or a hit-and-run driver, they will get the necessary coverage through an uninsured motorist coverage.
- Accidental benefits – If you are in an accident, your policy will cover your hospital expenses and rehabilitation. Depending on the type of insurance policy, the policyholder might be eligible for loss of income benefits if the accident prevents them from working. For worst-case scenarios, you can also get funeral cost coverage.
- Comprehensive – This coverage protects your car from damage from vandalism, storms and falling objects. Comprehensive coverage is also valid when your car is stolen.
What type of car insurance policies should you buy?
Firstly, before buying car insurance, you need to assess your requirements. You do not want to buy too much or too little coverage. So you must buy an insurance policy according to your daily purposes and driving preference.
As a young student, you will not earn a significant salary, and finding affordable car insurance for young drivers can be a challenge. However, in most cases, you have to pay higher premiums than old drivers. Therefore you must always think twice before getting any type of additional coverage.
The type of insurance you choose will also depend on the car you are driving. If you are driving a vehicle that is not worth fixing after the accident, you can always avoid any coverage related to a collision or accidental repairs. Avoid driving costly cars when you are young, as the premiums for such high-end cars can be even higher.
How much do you need to pay for your student car insurance?
Students and young drivers do not have access to cheaper insurance rates. Therefore the average car insurance cost for a student in Canada is 142% higher than the average cost paid by an experienced driver. Depending on your province, you will be paying somewhere between 126%-210% of the average premium rates for a student’s car insurance.
- According to a research report, Ontario charges the highest premium for young drivers, approximately $4144.
- New Brunswick is the most affordable province; the average student car insurance rate is $1867.
How can you get cheap student car insurance?
Here are some tips you can follow to reduce your insurance premiums.
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Add yourself to your parent’s insurance policy.
The simplest way to save on insurance premiums is to get listed on your parent’s insurance policy as an occasional driver. There will be a significant increase in your parent’s insurance premium. However, it would be much cheaper than getting individual insurance of your own.
But, this is only possible if you share the vehicle with your parents and drive it occasionally. If you own a separate vehicle, you must buy a separate insurance policy.
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Level up your licence or take a Driver’s Education Course
Another simple step to decrease your insurance premiums is by getting formal driving education. Most insurance companies will offer discounts if you have completed a driving course. To do that, you can research your area’s accredited driving schools. Most insurance companies consider you a reliable driver once you complete your full G licence.
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Enquire about discounts
You can always ask for a student car insurance discount from your insurance company. In addition, companies offer numerous discounts to attract new clients.
Telematics discount – Telematics or usage-based insurance calculates your annual premium rates by tracking your driving habits using a mobile application.
Winter tire discount – In 2016, the Ontario government instructed all insurance companies to offer a 5% discount to drivers with winter tires installed. These discounts vary depending on your province. Thus, it is best to enquire from your local insurance agent.
Car insurance student discount – Some car insurance companies may also offer student discounts if you maintain good grades. These discounts can be as high as 25%.
Credit score discount- individuals with good credit scores are also eligible for insurance discounts. Now, the exact score might differ from provider to provider. However, a score of more than 680 will most probably earn you some discount.
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Contact a student discount car insurance provider
Occasionally some car insurance companies might also offer you discounts based on your enrollment in a college, high school or university. You can always ask the insurance company or visit their website to learn about these discounts.
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Apply for financial aid
Some groups and affiliations are in partnership with car insurance companies so that the registered group members can get discounts. You can ask the financial aid office in your institution to know whether they have any partnership with such organizations or not.
Student car insurance discount — Endnote
Students or younger drivers below 25 are still learning to drive and are acquiring experience. New or young drivers present more risk and are more likely to be involved in an accident than experienced ones. Therefore the insurance premiums get higher. However, you can find numerous ways to reduce costs with little effort and research. Reach out to professionals for help.
