Auto Insurance for Teen Drivers Tips for Finding the Best Coverage at a Reasonable Price
If you’re a young driver, then one of your biggest concerns right now will be your auto insurance quote. It can be daunting trying to find coverage that won’t break the bank but thankfully, there are a few things you can do.
Here at Ron Johnston Insurance, we’ll help you understand the different types of coverage available and recommend tips for getting the lowest premium. Let’s get started!
Understand the Different Types of Coverage
Third-party liability coverage is mandatory in Canada and covers you if you cause damage to another person or property while driving. However, the exact minimum insurance coverage you need can change from one province to the next.
For example, in Ontario you need:
- Minimum $200,000 Third-Party Liability
- Uninsured Automobile Coverage
- Statutory Accident Benefits
- Direct Compensation
Accident benefits coverage provides medical and rehabilitation benefits to you and your passengers if you’re injured in an accident, regardless of who is at fault.
Direct compensation property damage coverage provides coverage for damage to your vehicle if you’re involved in an accident that wasn’t your fault.
Finally, uninsured motorist coverage provides coverage if you’re involved in an accident with an uninsured driver.
Along with these, it’s important to understand the different types of optional coverage that are available. There are four main types of extra coverage options, which are:
- Specified Perils
- All Perils
Collision insurance covers the cost of repairing or replacing your own car after an accident. Specified Perils are for specific non-driving damages such as from a fire or hail. Comprehensive covers all perils, except for collision. And then All Perils covers you for everything.
Adding Additional Coverage
Whether you choose additional coverage options or not is up to you. If you have the most basic (and therefore cheapest) form of insurance coverage then the repair of your car won’t be covered if you have an accident, and repairs also won’t be covered for the likes of theft or weather damage.
While adding additional coverage to your policy will increase your premiums, it may be worth it in the long run if it provides you with greater peace of mind. However, if you want the cheapest premiums possible, then just opt for the mandatory cover.
Tips for Finding the Best Auto Insurance Coverage at a Reasonable Price
Now you know what type of coverage options you need to be looking at, let’s check out some tips to try and get your premium as low as possible.
When it comes to finding the best auto insurance coverage for a teen driver, it pays to shop around. Insurance rates can vary widely between providers due to a wide number of reasons. It’s a good idea to get a few quotes and look at the different types of coverage options available.
Consider a Higher Deductible
Your deductible is how much you pay before your coverage kicks in. The higher your deductible, the lower your premium will be. For example, if your premium is $500 then you’ll need to pay that to the insurance company before the claim goes ahead.
The risk/reward here is fairly obvious. While a high deductible can make insurance cheaper, it can put you into financial trouble if you have an accident and can’t afford to pay the deductible. While tempting to have it high, make sure it’s still affordable.
Black Box Insurance
Also called a telematics policy, this is where a box is installed into your car to measure how you drive. It will check on the likes of speed, braking, and steering. If you’re a safe driver, then this can result in lower premiums as you can prove it through the telematics.
While it can be useful, there are people who find it intrusive and limiting. But if you want the lowest insurance premium possible, then it’s worth considering.
Use Parents Insurance
If you’re only going to be driving a car occasionally, then it can be a good idea to attach yourself to your parents (or other guardians’) insurance policy. This will mean a much lower premium than if you had your own insurance.
But there is a word of warning here. You should only do this if the main policyholder is genuinely the person who mostly drives the car. Pretending someone is the main driver when they aren’t is called ‘fronting,’ and it’s illegal.
Bundle Your Insurance
This usually isn’t applicable to teens, but it’s worth mentioning. If you do happen to need other types of insurance, then you can see if you can combine them to get an overall lower cost.
Maintain a Good Credit Score
It’s hard for teens to showcase a good credit score but it can reduce your premiums if you have one. It’s worth working on your score to help with future premiums and getting credit in other areas of finance.
Again, this is more for getting lower premiums in the future. With no history of accidents, traffic violations, and insurance claims, you’ll be viewed as a lower risk. While premiums can be very high in your first year of driving, you can work towards significantly reducing them in the future.
Finding the best auto insurance coverage for a teen driver in Canada can be a challenge. It’s important to think thoroughly about what type of coverage you need and other aspects, such as your deductible.
While high premiums can be daunting, you can quickly reduce them with a good, clean driving record. If you’re looking for an affordable auto insurance quote, make sure to contact Ron Johnston Insurance. We’ll happily answer any questions and get you covered while you’re out there on the road.
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