Seasoned drivers get plenty of attractive options while selecting car insurance. Whereas young or first-time drivers usually end up paying more than mature drivers. However, with the right guidance and comparisons, you can find the cheapest car insurance first time drivers.
The rate of car insurance varies significantly in different provinces of Canada. But, several reputed insurance companies provide a one-stop destination to select the best car insurance online. Customers can compare, select, and purchase car insurance according to their needs and budgets.
First-time drivers need to know some important aspects to select the best and most affordable car insurance. You can find the best quotes for car insurance in Alberta here.
Average Cost of Car Insurance for First-Time Drivers
Considering the fact that young drivers are more prone to accidents than mature drivers, the car insurance rates for the age group of 16-24 are much higher. Further, in this category, a 16-year-old pays a higher premium than a 24-year old. On average, a car insurance policy for a 16-year old driver could cost around $3,000 per year.
The rate of the premium goes down with the increase in age. The table below shows the approximate car insurance figures for different age groups.
The stipulated figures are far costlier than average car insurance rates in Canada for mature drivers. But, these figures may go higher or lower depending on a few factors, such as:
- Driving record
- Purpose and frequency
- Vehicle type
- Age of your car
- Driver’s age
- Gender and marital status
Tips To Get The Cheapest Car Insurance for First Time Drivers
First time driver cheap car insurance is likely a priority for new drivers. However, it’s important to note that young drivers ages 16-25 fall under the high-risk category. As a result, they get fewer options while choosing a car insurance policy. That said, you can zero in on the best car insurance policy by following these tips.
Hunt around to get the best coverage
The algorithm to calculate insurance premiums varies with each insurance provider. Therefore, settling with the first quote is not a wise option. It is vital to compare quotes from different insurance companies to ensure you get the maximum coverage at the best rates.
Today, there is no lack of online platforms that provide user-friendly interfaces to compare and select the best policies from different companies in one place. However, the commission they charge on every policy may vary. In the end, the comparison remains the key.
Join an existing policy
Purchasing a new car insurance policy for new drivers can burden the budget. People who have different policies for motorcycle, boat, and homeowner often choose policy bundling to save on premiums.
Similarly, adding a teen to an existing car insurance policy can save money in the long run. While the addition of a teen to an existing policy raises the premium by an average of 140%, it is still less than purchasing a separate policy for the teen.
Choose your coverage wisely
The extent of coverage you may actually need depends upon factors such as the age of your car, your location, and your driving history. Choose a comprehensive package loaded with full features only after assessing such aspects. Otherwise, cutting excess coverage could help you lower your premium.
Furthermore, costs should not be the only determining factor. You should ensure you get a balanced package that covers all essentials.
Choose a higher deductible
The simplest and most effective way to lower your car insurance rate is by raising your deductible. It is an out-of-pocket expense that you pay in the event of an accident. A higher deductible can significantly lower your yearly premium.
However, do not choose a deductible amount more than your paying capacity. If you file a claim after an accident, you should be able to pay the deductible comfortably.
Do not forget to look for discounts
Reputed insurance companies offer attractive discounts for teenagers. To avail of this, be extra careful when comparing the policies. Do not forget to check out the discount tab to save money. Discounts for students such as a good student discount can save drivers up to 10%.
Similarly, most insurance companies offer great discounts on car insurance if you pay your premium all at once, whereas paying your premium bi-annually offers little or no discount. Moreover, there are chances of incurring NSF fees or cancellation of the policy if you miss a monthly payment.
Develop good driving habits
As a new driver, you should be extra careful on the roads. Follow all rules and regulations, and avoid violations and at-fault accidents. By doing so, it will gradually develop healthy driving habits. It is not only beneficial for the person and others’ safety but reduces the car insurance rate in the long run.
Choose an older car
As your car insurance rate is directly proportional to the value of your car, choosing an older car for first-time drivers is an intelligent decision.
Things to consider while buying a car insurance
When selecting an insurance policy, here are a few factors to consider.
Buy insurance from:
- A licensed insurance agent who represents an insurance company and sells registered insurance policies
- A registered insurance broker
- A federally, provincially, or territorially licensed insurance company
- A lender
You can buy insurance:
- Over the phone
- In person
Now you know how to get the best car insurance for first-time drivers. Damages to a car in the event of an accident can put a heavy burden on the owner’s budget. Hence, you ensure complete financial protection by purchasing the best car insurance. Conduct in-depth research and compare plans to get the best deal.