Keep car rates low as a new driver
When you get your driver's license for the first time, the world opens up. With a car, fun is just a few steps away. Car insurance is a mandatory purchase, but did you know that car insurance for new drivers is significantly more expensive than for older, more experienced drivers? This is because car insurance premiums are generally based on your likelihood of making a claim, and statistically, new drivers are more likely to be involved in an accident or have their car damaged than more experienced drivers.
It might not seem fair to you. After all, you don't have a driving record to base it on—why would you be charged more? According to the figures, young drivers aged 16 to 19 are much more likely to be involved in an accident than drivers over 20. Men are also considered more likely to be involved in accidents than women, but unfortunately, this isn't a premium increase that will disappear over the years.
Are you stuck with this increase? Yes and no. As a new driver, there are ways to make your car insurance rates more affordable.
4 main ways new drivers can reduce their rates
Here are four of the main ways new drivers can reduce their fares, broken down as follows:
#1: Increase your deductible.
Your deductible is the amount you must pay before your car insurance company covers the remaining costs. For car insurance in Quebec, you don't have to pay your deductible if the accident is not your fault. If you are involved in an accident and are found not at fault, you will receive compensation under your liability insurance.
As a general rule, the higher your deductible, the lower your rates. You can choose to increase your deductible for lower rates, but make sure the amount is reasonable so you can still pay out of pocket if something disastrous happens.
#2: Shop for a font.
It should go without saying, but cheap doesn't always mean better. You'll want to make sure you don't cut any coverage simply to make your insurance affordable.
Panda7 gets straight to the point and shops around for you. We have access to major car insurers and can get you a quote quickly so you can personally see your potential costs.
#3: Take a driver education course.
Not only will taking a defensive driving course teach you how to drive more safely, but many auto insurers offer discounts to young drivers (or drivers of any age, really!) who complete approved courses. Accident prevention and driver education are both recommended options to help lower your rates and reduce the likelihood of an accident.
Speak with a broker or your insurance company before enrolling in a course, just in case the course you're considering isn't eligible for a discount. Also, you'll want to assess whether the time and effort involved, along with the course cost, will justify the discount.
#4: Opt for public transportation.
Yes – while your first instinct when you get your license is to want to drive everywhere, be aware that the more distance you cover, the higher your fines can be. Indeed, the more you're on the road, the greater your risk of being involved in an accident. This is especially true if you tend to drive during periods of heavy traffic.
You can reduce your travel distance by using public transport whenever possible. Instead of driving to and from school or work, take the train or bus. If the distance is short enough, you might even consider cycling instead. Each company will have a mileage limit.
Remember: "new" does not mean young
If you were to get your driver's license at age 30 or older, you're still considered a "new driver." Sure, you might be old enough, but that doesn't mean you have the driving experience! Your car insurance provider will likely still group you with younger drivers.
If you are an immigrant with years of driving experience in your country of origin, you may be able to request a "letter of experience" from your current insurance company. This demonstrates that you already have years of experience, though perhaps not in Quebec or elsewhere in Canada where you live.
However, if you are new to winter driving because of where you previously lived, your insurer may still take this into account and it will likely take some time to get used to before you can be considered anything other than a new driver.