Car insurance is a significant liability on the shoulders of any car owner, especially when the driver is young. New drivers have to pay higher car insurance premiums than experienced drivers. This is because they are inexperienced, financially unstable, and do not have a strong insurance history.
No matter how costly the car insurance is, every new driver has to start from somewhere. So, instead of worrying, efforts should be made to lower the cost of car insurance. In this article, you will learn about various tips to get cheap car insurance in Toronto for new drivers.
However, you can always contact a car insurance broker to get car Insurance Toronto: get a quote today and start saving on coverage! Modern insurance brokerages work with several of the best insurance companies, allowing them to provide policyholders with a collection of quality insurance quotes.
Who are considered new drivers for car insurance?
An insurer may categorize young drivers with no prior driving record or having car insurance as new drivers. This may include:
- Drivers searching for their first car insurance after successfully passing their driving test and obtaining a driver’s license.
- Young drivers below the age of 25 are considered inexperienced. As they are more likely to file a claim, insurers consider them as high risk.
- Migrated individuals with no record of insurance and Canadian driving experience. Irrespective of age, for insurers, these are new drivers.
As evident, there are significant risks involved in insuring new drivers. So, to mitigate these risks, car insurance providers tend to hike the car insurance premiums for new drivers.
Typically, the car insurance cost for a new driver can range from $3000 to $4000 per year, depending on their age.
Tips to get cheap car insurance in Toronto for new drivers
While car insurance is a must to drive vehicles in Canada, there are some ways to get car insurance in Toronto for new drivers, such as.
Perhaps it is the best and the most practical way to score cheap insurance for a young driver. As the risk appetite varies from one insurer to another, the car insurance costs vary accordingly. So, shopping around is the key to getting the most competitive rate.
Talk to the insurance providers to get special discounts meant for students. Some insurance companies offer discounts for meritorious students of high-school or post-graduate programs.
Passing a certified driving course can be an excellent option to get extra discounts on car insurance for new drivers. The safe driving certificate proves that you are a safe driver and know all rules and regulations.
Consider usage-based insurance and telematics
As the name suggests, you have to pay your premiums as per your car usage. Usage-based insurance is becoming popular among several users who have multiple cars or drive only for leisure.
Through telematics, insurers assess your driving habit and usage through days obtained from GPS and other tracking devices. During renewal or purchase, they assess the following aspects:
- Distance covered
- Your average driving speed
- Time of the day you drive the most
- Driving habits
However, not all insurers offer this service. You have to confirm with your new provider before inking any contract.
Select your car carefully
The car insurance premiums you pay directly depend on the type and model of your car. Advanced cars with fully-loaded features tend to fetch higher car insurance premiums than traditional ones. Similarly, some models are more vulnerable to theft and have low safety ratings than others. These cars also fetch high insurance rates.
So, comparing car insurance rates before buying is a good practice. Moreover, new drivers can start with a humble car to save on car insurance. Meanwhile, they get an opportunity to build experience and improve their driving history.
Get listed on your parent’s auto insurance policy
To avoid paying higher premiums altogether, new drivers can choose to get listed as secondary drivers on their parent’s policy. Interestingly, there is no need to own a car to get listed on your parent’s policy. Therefore, it is the best way to build a record without paying hefty premiums.
Review your policy
Extensive coverage and costly add-ons are not always advisable. For instance, if you own an old car, avoid collision coverage. Similarly, you can follow these tips to lower your car insurance premiums.
- Increase the deductible. However, you might have to pay out-of-pocket expenses in the event of an accident.
- Go with minimal coverage as mandated by Provincial laws. For instance, Comprehensive coverage could cost you dearly, whereas third-party insurance would fall within your budget.
Furthermore, car insurance rates can vary depending on the new driver’s age, sex, and area where they live. Getting car insurance in Toronto for new drivers is tricky, so you must weigh various options. For most, comparing quotes is the best viable option.
Where to get cheap car insurance for new drivers?
Now that we know the tips to get cheap car insurance, let us find out where to find the cheapest insurance in Toronto for new drivers.
- The best place to start is an online search. Unlike earlier, you don’t have to make calls or engage in long conversations to get quotes.
- Now, you can visit the websites of reputed car insurance agents and brokers to compare multiple quotes in the comfort of your home.
- Moreover, you can talk to an experienced insurance broker if you want highly personalized car insurance. These professionals can help you get the best coverage at an affordable price.
Cheap car insurance Toronto for new drivers — Endnote
There is no single sure-fire way to get cheap insurance in Toronto for new drivers. But, using the tips in today’s post can potentially help you lower your rates. This article has mentioned some tips to reduce car insurance costs for young and inexperienced drivers.
Undoubtedly, getting multiple car insurance quotes seems to be the best option. It not only helps you to understand the market trend but also lets you choose the best coverage.