Should Young Drivers Stay on Their Parents' Insurance or Get Their Own?
Driving can get pretty expensive, especially as it relates to young drivers. In addition to jumping through all the hoops to get your driver’s license, you have to buy your car, register it, and then insure it. One of the most expensive parts of this equation is getting the insurance.
Unfortunately, statistics are not your friend. In 2011, drivers aged 20 to 24 made up only 8% of licensed drivers in Ontario but accounted for 11.5% of injuries and 16% of fatalities related to car collisions. These figures don’t make it easier for you to get cheap insurance so you’ll want to do everything you can to lower these rates.
Here are some steps young drivers can take to score a better deal on insurance:
Save with a driving education discount
As a young driver, it pays to enrol yourself in an approved driver education program. You will learn how to drive from an instructor without picking up some of the bad habits your parents might have already. Has your mom always been afraid of passing semi-trucks on the highway? The best way to avoid having that passed on to you is to get professional training and then practice with the parents.
Pick a car that’s cheap to insure
The most obvious way to save cash on insuring your car is to pick a lower cost second-hand car. You can save a few dollars by side-stepping cars that are more likely to get stolen. For example, Honda Civics and all kinds of pick-up trucks and SUV’s usually get picked up first.
You might need to get a mechanical inspection on something before you insure it but getting by with a lower class ride will save you major moola in the end.
Take advantage of user-based insurance
While user-based insurance (UBI) isn’t widely available across Canada yet, some insurance companies in Ontario and Quebec offer these policies to drivers. Basically, the insurance company gives you a little telecommunications device that records speeding, braking, and cornering rates and relays that back to the insurance company for analysis.
This allows you to prove your good driving habits directly to the company and in exchange, they may offer you up to a 25% discount on your premiums. Shop around for the best deal and you’ll be good to go!
Get the good student discount
Getting good grades might actually save you money on your auto insurance. When young drivers buy insurance for the first time, some companies may be willing to consider grade point average as evidence that you’re a solid bet for insurance coverage. Each company is different but they may require you to maintain a certain grade average while attending high school, college or university.
Stay on your parents’ policy
Insurance companies penalize young drivers because they don’t have a proven track record of good experience. One of the best ways to get a jump on this to build some solid experience without the hefty price tag. You can do this by insuring under your parents’ policy. To get the best deal, register as an occasional driver.
In short, insuring under your parents for as long as possible is the best way to save money on your car insurance. Everyone’s situation is different, but building a solid driving record takes time and it’s definitely better to do it at a discount.