There’s the cost of the vehicle itself (new or used), gas and maintenance, plus auto insurance for young drivers. People under 25 pay the highest insurance premiums of all drivers on the road. Why? Transport Canada statistics speak for themselves:

• Even though drivers under 25 make up just 12% of all Canadian drivers, they account for around 16% of traffic fatalities and 20% of injuries.
• 1 in 5 drivers in Canada will have an accident in their 1^st year of driving.

The sad reality is that young drivers are more likely to be in a car accident.

5 ways to reduce your insurance premium

1. If you’re a young CEGEP or university student or graduate, you’re eligible for additional savings on your car insurance.
2. Shop around and compare the insurance rates offered by different companies. Just make sure all the quotes include the same coverages so you’re comparing apples with apples.
3. Drive an older, used vehicle: it will probably cost less to insure.
4. Think twice before modifying your car—some insurance companies categorically refuse to insure modified vehicles. If you modify your car’s engine, bodywork or wheels, 2 things might happen:
   • Your insurance premium could skyrocket
   • Your insurance policy could be voided in the event of an accident if the modifications affected the vehicle’s performance.
5. Have a clean driving record. Drivers who haven’t made claims in recent years are often offered a premium discount at renewal.

The final word

Putting the key in the ignition for the first time is an exciting moment and a giant step towards adulthood. Always drive carefully—it will be safer for you and everyone else. And it just might save you money on your car insurance!