How to Lower the Cost of Insuring Your Teen Driver
Do you have a young driver in your household? If so, you may be paying too much for auto insurance. Ontario has one of the highest auto insurance rates in Canada. Young drivers are often classified as “high-risk” drivers and are particularly expensive to insure.
There are a number of auto insurance discounts I recommend to reduce the cost of auto insurance premiums for young drivers. They are as follows:
1. G1 Drivers: Most companies do not charge a premium for G1 learner drivers on an insurance policy. In fact, the sooner they are added, the sooner they earn “Years of Experience,” which benefits them in the future.
2. Driver’s Education: Driver’s Ed teaches young drivers to be responsible road users. In addition, young drivers with under five years of driving experience who have completed a Driver’s training program are eligible for an auto insurance discount. Taking Driver’s Ed also shortens the time (from one year to eight months) for a young driver to take the G2 test. All these pluses make this a worthwhile investment.
3. Good Student Discount: Studies have shown that students who perform well academically are less likely to engage in high risk behaviours such as speeding, racing, distracted driving, etc. Check with your insurance provider. See if a discount is offered if your teen maintains an average of 80% or higher in the academic term.
4. Away at School Discount: This is not often known, but if a young driver is enrolled full-time at an educational institution more than 100 km from home, some companies will provide a discount of up to 50%. Proof of school enrollment is needed to confirm eligibility, as well as a driver’s license showing a permanent home address.
5. Bundle Discounts: Young drivers who live at home are entitled to bundle discounts when providers insure all home and auto lines in the household. It’s interesting to note that these discounts can even be extended to young drivers who may have a separate policy. Bundling your entire household’s insurance together can certainly increase savings for a young driver’s auto premium.
6. Group Discount: Find out if your employer has a preferred insurance company. If so, your employer may extend further discounts to each family member under 25, regardless of whether or not that person lives at home.
7. Usage-based Insurance: This is a proven way to help reduce auto premiums. Many insurance companies offer a driving analytics program that can be used while driving to assess a person’s driving behaviour. If you consider yourself a good driver, i.e. you often stay below 120 km/h and seldom break hard, you are likely be a great candidate and benefit from additional discounts.
All of these discounts add up. My goal is to help clients realize the total savings. As a result, young drivers can pay a fraction of the premiums offered by competitors, and get similar or better auto insurance coverage.
Share this video with someone you know who has a teen driver in their household and is looking for ways to save on their Auto insurance!
Contact me if you have a question or to get a quote.