You are required to purchase car insurance if you plan to drive in any province or territory in Canada. This means that young drivers need to purchase auto insurance, even if they are 16 or 17-years-old. The other option is to be added as an additional driver on their parent’s insurance policy. Depending on which province they live, a 17-year-old driver may have only been driving for a year or two. Unfortunately for those drivers, many insurance companies see them as inexperienced and risky drivers because they have not proven themselves yet. Chances are your insurance policies will be higher than those of people in their twenties, thirties, forties and above.
Teenage drivers will often end up paying as much as 60% more than their parents would pay for car insurance. For example, if you’re a 45-year-old driver in Calgary and you’re paying $2000 per year for car insurance, a 17-year-old living in the same city could end up paying $3200 or more. This is just an example though – the best way to calculate your insurance premiums is to get a quote.
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How Your Parents Can Help
Many 17-year-old drivers aren’t ready to pay for their own car insurance policies so parents have the option of adding their teenage son or daughter to their personal policies. It will cost more for a parent to add a 16 or 17-year-old to their insurance policy than it would an older driver but it will still be a lot cheaper than buying the teenager separate coverage. This is basically a way to spread the risk around and it tells the insurance company that the parent will be keeping an eye on the young driver.
The Statistics Are Working Against You
Teenage drivers between the ages of 16 and 19 are more likely to be in an automobile accident than any other group. Car insurance companies take this into account when they calculator premiums. They know that statistically you are more likely to speed or be in an accident and therefore they increase the costs of your insurance to make up for this. Unfortunately there isn’t much you can do about this if you are a young driver.
Buy A Beater
A cheap car will come with cheap insurance. If you drive around in a 1995 VW Golf you will spend a lot less on your car insurance than you would if you drove a brand new BMW or Audi. If you’re serious about saving money on your insurance then get a car that isn’t worth a lot of money. If you or your family has the money to pay for a luxury automobile then chances are that saving money on car insurance isn’t terribly important to you. In that case, enjoy your car!
How To Spend Less
Unfortunately there aren’t a lot of options for young drivers trying to save money. There are a handful of insurance companies in Canada that provide discounts for students with good grades. You can also reduce your deductible to save money on your insurance. If you get in an accident you will end up paying more out of pocket so weigh your options wisely before you jump into anything.
Patience is a Virtue
Most teenage drivers wont like to hear this but the best thing you can do is drive safely and wait for a few years. With a clean driving record your insurance premiums will go down pretty quickly. If you’re not confident on the road consider taking a driving course. Spend the time to get familiar with driving before you get out on the road. Your safety and the safety of other drivers on the road is even more important than how much you pay for insurance as a 17-year-old.