Drivers under the age of 25 typically pay a pretty high premium when it comes to car insurance in Canada. Teens pay even more than drivers in their 20’s. It’s simply for lack of experience and confidence in handling road hazards and situations. Those of us who have been driving for years, have a greater level of experience when it comes to driving in all sorts of conditions including city driving, suburban driving, bad weather, etc. I understand that this might sound very stereotypical, but statistics have shown that the age of 25 is typically the point where drivers start to become more experienced and are involved in less accidents.
As many of you know, Ontario has one of the highest rates in Canada for auto insurance and Young Drivers under 25 are particularly expensive to insure. Getting a driver’s license is an exciting time for any first-time driver. There’s a sense of freedom, joy, and responsibility. If you have a young driver in your household, then you know how expensive your auto insurance premiums are!
I have insurance options that allow you to protect your entire family yet benefit from some great savings that we offer to families with young drivers! If you are a newly licensed Canadian driver, or have one in your family- it’s time to think about insurance.
Here are 6 discounts that I can offer to keep your premiums low:
Driver’s Education: Driver’s Ed is more than about learning the “Rules of the Road”. These programs help educate young drivers and teach them how to be responsible drivers. Young drivers with less than five years of driving experience and who have completed a Driver’s training program are eligible for discounts. This is definitely a worthwhile investment every parent should make in their child!
Good Student Discount: Some companies reward young drivers who do well at school, e.g. maintaining an 80% or above average for their academic term. Studies have shown that young people who perform well academically are less likely to engage in high risk behaviours such as speeding, racing, stunt driving, etc. I offer a 10% discount for any eligible young driver. A copy of their academic transcript is all I need to add this discount for them. This is a great motivation for young drivers to maintain good grades at school!
Away At School Discount: If your child is attending an educational institution that is located more than 100-km one way from your home, we will add an additional 50% discount on your policy. A proof of enrollment from the registrar’s office is all we need to have this discount added!
Bundle Discounts: Young drivers under 25 who reside in the same household are entitled to the multi-car and bundle discounts when we combine all your auto and home insurance under one family package. These bundle discounts are even extended to young drivers who have a separate auto insurance policy with a car registered under their own name. Bundle discounts can add an additional 10-30% discounts toward your child’s auto premium!
Group Discount: If either parent is a member of a Group Insurance plan, we would extend the same discount to each dependent child under 25 regardless of whether the child lives at home or not. To find out if your employer has a group discount with us, contact me today.
Driving Analytics Program Discount: Usage-based insurance has been a proven way to help reduce your auto premiums. Many insurance companies today offer an analytics program that assesses your driving behaviour. If you don’t consider yourself an aggressive driver, i.e. you often maintain a driving speed of under 120km/h and seldom break hard, you would likely be a great candidate and benefit from additional discounts toward your auto premiums. These programs aren’t limited to young drivers, but are a definite way to help reduce your premiums in the long-term if you are a great driver! I have seen some clients earn up to a 30% discount for life just by enrolling in the program for six months!
All the above discounts can be cumulative, and it is not uncommon for my clients with young drivers under 25 paying a fraction of the premiums offered by other competitors; with similar if not better insurance coverage! To learn some additional Tips on helping young drivers safe, check out my Video at: https://darryl-lim.ca/my-commitment-to-you-1/
“All opinions and views expressed in this blog are of my own and do not represent the views of Allstate Insurance Co. of Canada.”