It is a thrill to achieve a driver’s license and earn the new freedom being a driver provides. There is also the reality of higher car insurance rates for a new and unproven driver and there are many factors in determining a new driver’s car insurance rates, for example, car insurance for someone driving a sports car living in downtown Ottawa will likely be far more costly than a driver insuring a mini van in the suburbs. This guide will explore the factors calculated in new driver’s insurance and strategies to potentially decrease the annual rates.
Age & Driving Experience
The stats show that new and inexperienced drivers of any age are more likely to be involved in an accident, leading insurers to charge higher premiums to offset the risk. When it comes to new drivers, teenagers have a higher crash rate than adult drivers over 30.
Cost-Saving Strategy – Defensive Driving Course
Graduating from an Ontario Ministry of Transportation certified defensive driving course could potentially lower your rates as it proves you have the skills and knowledge to drive safely and avoid accidents.
Type of Vehicle
A vehicle’s make, model, and year can play a significant role in the cost of insurance, especially for a new driver. The reasons include high-end vehicles like sports cars and luxury vehicles demand a high premium on car insurance due higher risk of being stolen and expensive repair costs while insurance is cheaper for vehicles with lower repair costs and a high safety rating.
Cost-Saving Strategy – Choose a Vehicle with Less Expensive Insurance
If trying to decide between two vehicles to purchase, consider consulting with your insurance broker to find out which would be less expensive to insure
Location
Expect much higher premiums on car insurance if you live in a big city with high traffic density and more cases of vehicle theft than if you live in a rural area or smaller town. Some regions have higher minimum coverage requirements, which can make it more expensive for the new driver.
Cost-saving Strategy – Consider Coverage Level
Not all car insurance is the same, and there is comprehensive and collision coverage that offers extensive protection but is more expensive compared to cheaper basic liability car insurance coverage. The more expensive coverage provides great peace of mind for an inexperienced driver, but you may decide you don’t need it due to your circumstances, region, and situation.
Marital Status
Stats show married drivers get in fewer accidents than single drivers, which has an impact on car insurance premium rates.
Cost-Saving Strategy – Bundling Policies
You can often enjoy discounted rates if you bundle your car insurance with other policies like homeowner’s or renter’s insurance.
Conclusion
It can be exciting to be able to finally drive, but it is crucial to understand the costs that come with car insurance. There are many options and factors to consider while deciding what type of coverage you need as a new driver. Grenville Mutual is committed to helping guide new drivers through the process and finding the best car insurance to fit their budget. Please contact your broker or agent today to help you find the best coverage for you.
