In Canada, how much you pay for auto insurance is mainly affected by the following factors:
- (1) Where you live – Residents of busy, urban areas usually pay lower premiums than those who live in low traffic, less populated places.
- (2) The make and model of your vehicle – Some types of vehicles are safer and more crash-resistant than others. There are also those that come with high maintenance cost.
- (3)How your car is used – You may pay higher rates if you use your car very often, or for frequently driving long distances.
- (4)Your demographics – Different groups pay different rates. For example, younger, less experienced drivers are considered more of a risk, so their premiums are higher. Young male drivers are considered the group most likely to be involved in vehicular accidents, so they are charged very high premiums compared to other drivers.
- (5) Your driving record – Being an experienced driver with a clean driving record will lower your insurance rates greatly.
How do all these factors affect teenage drivers?
Teenage drivers can’t do much about the first four factors. Extreme measures such as moving to an area with lower auto insurance rates and drastically reducing car use are disruptive and often unreasonable options. Teenage drivers can reduce costs by driving a make and model that has a low insurance premium, but the cost of such cars themselves may be prohibitive. Teenagers also cannot change the demographics they belong to, short of waiting a few years until they move into an older age group. However, there are still ways to save on auto insurance cost. Here’s a short list:
Be more educated.
Teenage drivers can cut auto insurance costs by increasing their driving knowledge and experience. Many auto insurance companies reduce rates for teenage drivers who have completed an accredited driving course. There are many government-approved driver training courses for this. Ask your insurer which courses you can take in order to save on your premiums.
Have a clean driving record.
Since teenagers have few years of driving experience, their driving record should be as free of accidents and violations as possible. Teenage drivers should be well-educated about the traffic rules and regulations in their area and act accordingly. Parents are recommended to restrict driving privileges of teenagers who incur traffic violations, so that they will learn not to accumulate them in the future. This also prevents teenagers from becoming repeat offenders, which will further worsen their driving record and increase insurance costs.