Student Car Insurance

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student car insurance

Are you a student looking for cheap car insurance? You aren’t alone. Most drivers start out as students, and one of the first things you need to do as a new driver is to get car insurance. Regardless of the insurance company, students are often faced with higher premiums for a variety of reasons, the main one being their lack of experience. Whether you’re a good student or not, insurance companies consider students to be a high-risk driver, likely to be involved in an accident. As a result, student car insurance rates are steep.

Who is considered a student?

Car insurance providers consider anyone that is enrolled in highschool or a post-secondary institution such as college or university, a student. Students are typically young drivers under the age of 25. With less than ten years of driving experience under their belt, students are still learning the rules of the road and insurance companies consider them to be of higher risk.

What type of car insurance do students need?

Like all drivers in Canada, it is mandatory for students to have third-party liability insurance, accident benefits, uninsured motorist coverage, and direct compensation property damage coverage. They also may take advantage of optional coverage such as comprehensive or collision coverage.

All Canadian drivers are required to have a minimum of $200,000 in third-party liability insurance. This will protect you if you’re sued for damages or injuries you caused on the road. 

Accident benefits assist you while recovering from an accident and will cover costs that exceed provincial health care.

Coverage for personal injury or property damage caused by an uninsured driver or a hit-and-run. 

Financial protection if the other driver causes a collision and damages your car.

Optional Coverage

This can be added to your basic insurance policy in order to protect yourself from a financial burden resulting from a collision with another object. Collision coverage will pay for any damage involved.

Comprehensive coverage pays for damage caused by events that are out of your control such as theft, weather, vandalism, or otherwise. Comprehensive insurance covers you against all insurable perils, with the exception of damage from a collision.

Student discounts for car insurance

While student car insurance tends to be quite costly, many car insurance companies offer a student discount. A student discount can help compensate for the high premiums. You may save money on auto insurance by meeting the following criteria:

Low Mileage: Students who go to college or university away from home and rarely drive can typically receive discounted rates their insurance company.

Successfully Completing a Driving Course: Insurance companies reward students who enroll in an approved driving course and pass. Enrolling in such a course will provide you with a better knowledge of the rules of the road and you will be considered a safer, lower risk driver.  Taking a defensive driving course will not only sharpen your skills but it will also help you get cheaper auto insurance.

Being Enrolled in Post-Secondary: Your insurance company may give you a discount for being enrolled in college or university. Simply speaking, it pays to be a student. You may also qualify for further discounts if you get good grades – it pays to be a good student.

Get Your Full G License: When you get your full license, you will be rewarded with discounted premiums. For example, a student under 25 with their G license will likely experience a lower premium than a driver in the same position who still only has their G2 license. Insurance companies will consider those with their G license as a better driver. 

Frequently asked questions

How does student car insurance differ by province?

Like all car insurance, premiums will vary based on the province in which you live. For example, British Columbia, Saskatchewan, and Manitoba all have government-run insurance programs. In every other province, your car insurance rates will differ based on a variety of factors, including your level of experience, mileage, postal code, type of car you drive, driving record, and more. 

Auto insurance companies consider your province, city, and even postal code when calculating your premium. If you’re an out-of-province student and you drive a car, it is important that your insurance policy meets the requirements of the province in which you study. If you live in a province where insurance is government-operated, it’s recommended that you make sure you’ll still have the adequate coverage in your province of study. If you don’t get the appropriate coverage and get in an accident, you may end up with unwanted out of pocket expenses. 

Can students be covered by their parents insurance?

Yes, there are certain restrictions when it comes to getting classic car insurance. Depending on the insurance provider, certain classic car insurance policies will have higher restrictions than others, and you will likely see fluctuations across their coverage options and premiums as well. Like always, it is most beneficial to shop around and compare quotes online to get a better idea of how much you will be spending.

A common restriction on classic car insurance is the usage limitation. Insurance companies won’t provide coverage for your classic car if you wish to use it as your primary vehicle. A classic car will only be insured when it is intended to be more of a “toy”, meaning it is only used on occasion whether going to big events, shows, concerts, etc. Some insurance brokers will put a limit on the mileage you can accumulate. When it comes to everyday driving, it is best to have a separate primary vehicle used for commuting, errands, travel, and otherwise.

Since classic cars are meant to be driven as little as possible, classic car insurance is actually known to have the cheapest premiums. When you drive a car less, you are at a much lower chance of being involved in an accident or having to file an insurance claim.

Where can I buy student car insurance?

Like all types of insurance, it is recommended to shop around and compare car insurance quotes across various providers. With insurance products being so complex, it is nearly impossible to find two providers that will offer you the same policy at the same. Comparing insurance quotes for cars allow you to find the coverage that suits your needs at a price you can afford. 

How much does student car insurance cost?

Insurance is typically more expensive for students as they are usually less experienced drivers. As a student, you can expect your premium to be higher than that of a driver with a decade or more of experience. As you gain a further understanding of the rules of the road and years of experience, as long as you keep a clean record, your rates should start to decrease. This will usually happen after six to ten years. Luckily, there are several discounts available to students to help reduce the cost. 

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