Auto Insurance 101: Everything Young First-Time Drivers need to Know
As a newly licensed Canadian driver, it’s time to think about insurance. Here’s what you need to know about auto insurance and how to keep premiums low.
Not only will taking a Ministry of Transportation certified driver’s education course make you a better driver, but it may qualify you for a discount. Some courses even have additional bonuses such as CAA memberships or vouchers for oil changes or car washes.
A deductible is an amount you pay in the event of an insurance claim. It’s always wise to choose a higher deductible to lower your premium. Although, make sure you are able to afford it if you do happen to get into a collision.
When it comes to being insured, the car you drive matters. Insurance companies will take theft and safety into consideration. For example, if your vehicle has permitted safety features such as anti-lock brakes, air bags, winter tires and rear-view cameras, it will help reduce your premium. When it comes to car theft, some vehicles are more expensive to insure because they are more likely to being stolen.
Research and shop
Different insurance companies will all have different rates and coverage options. It’s a good idea to do some research online and get price quotes. Ask your relatives for any recommendations.Talk to licensed insurance advisors to see what they can offer for the right coverage.
Your gender, age, marital status and where you live can affect your insurance rate. For instance, male teenagers have been known to drive more recklessly and get into car accidents than female teenage drivers. If you are married, your auto premium may be reduced. This is because the driving record of you and your spouse is taken into consideration and can be factored into a new policy. In addition, your geographical location also plays a role when it comes to car insurance. If you live in a high-population area with more cars on the road, it means you are at a higher risk of getting into an auto collision. Car insurances policies also vary from province to province.
If you’re an honour roll student, you should not only be proud of your efforts but let insurance companies know as well. There’s a chance, you may be eligible for a lower premium if you maintain a certain grade point average and provide transcripts as proof. Hard work, does pay off.
Piggyback onto your parents’ insurance policy
This is an option if you don’t plan on driving that often. For instance, if you are a university student and you only plan on using the car when you’re home for the weekends. If you drive occasionally, you will pay a lower premium than someone who drives every day. Find out from your parents’ insurer, if you’re able to get a discount for having multiple cars on the same policy.
When talking to insurance companies for the first time, don’t be afraid to ask questions! The more questions you ask, the better you will understand insurance policies and you’ll be able to find the right coverage. Contact a Desjardins Insurance licensed insurance advisor today to help find an auto policy that best fits your needs.