DrivingTest.ca is an online driving test practice site that serves all provinces and territories in Canada. Advance through the practice tests at your own pace on any computer, tablet or mobile phone with internet access. While these tests are not the same as the actual ones you will be taking, they can give you a good idea of what to expect. It is all FREE!
The cost of car insurance may be less expensive if you live in rural Saskatchewan versus the urban locale of Toronto, but there is no general or typical cost of insurance for new drivers. In fact, there are a myriad of factors that influence the price of car insurance premiums for young Canadian drivers. Originally, your insurance provider will provide you with a premium based upon a base rate, but the rate changes as they calculate a score that is based upon your age, gender, location of residence, type of vehicle you’re driving, driving record, and claims history.
Drivers Under Age 25
Young drivers are the bread and butter of the car insurance industry. So, if you’re a young driver, you can expect to pay significantly more than older drivers. Since insurance companies consider teenage drivers as a higher risk than individuals with years of driving experience under their belt, you will be charged more for the same level of coverage, and they are within their legal rights to do so. The statistics clearly show that younger drivers are more likely to be involved in car accidents than older drivers.
The industry benchmark has always been 25 years of age, because statistics show that accident numbers decline significantly for drivers after reaching this anticipated age. Therefore, anyone under 25 should expect to pay more for any type of coverage that they choose.
Unfortunately for all of the young guys out there, your car insurance will be higher than female drivers the same age, because insurance companies consider you much more likely to take more risks than female drivers. In fact, male drivers in their teens or early twenties are likely to score the worst in every premium pricing category, except for claims history, because new drivers cannot be expected to have a lengthy claims record.
Young male drivers can expect to pay at least $3,000 per year for a full coverage policy, or they could save $1,000 per year or more by only opting for liability coverage. However, liability coverage is never recommended for new drivers, because they will be on the hook for any damage that occurs to their vehicle if they are at fault in an accident.
Location of Residence
The cost of your car insurance premium also depends on where you live. Thanks to less traffic and lower crime rates, rural areas have far less theft and accident rates than urban areas, which equates to lower car insurance premiums. If you live in a rural area, you can expect to pay noticeably less than you would pay if you lived in an urban city or area.
Type of Vehicle
The cost of your car insurance also depends upon the type of car that you drive. The slower and safer your car is, the less money you will likely have to pay to insure it. Therefore, one of the best ways for young drivers to shrink their premium is to choose a Volvo over a Ferrari. Seriously, it’s unlikely anyone driving a Ferrari would have to worry about their car insurance costs, but sports cars tend to be involved in a greater rate of accidents than slower vehicles. Along with other high-end cars, they are also more likely to be stolen. Thus, insurance companies charge more to cover them.
Driving Record and Claims History
As a new driver, you’re not likely to have a claims history or any marks on your driving record, but any traffic violations can significantly raise your insurance premium. With so many factors outside of your control working against you, this is one premium pricing factor that you can control. Keeping a clean driving record will lead to lower premiums, both now and throughout the rest of your driving years.
Insurance costs for new drivers are understandably higher than they are for experienced drivers. Unfortunately, many of these factors are outside of your control. However, in addition to choosing a safe vehicle and keeping a clean driving record, there are other ways to keep your car insurance as low as possible. In fact, many insurance providers offer discounts, such as a good grades discount or safety features discount, you may be able to take advantage of. You may also want to consider being added on one of your parent’s policies, which will save you considerably more than opting for a policy of your own.