It’s no secret that new drivers pay higher car insurance premiums, as they have less experience behind the wheel and the need to build up a safe driving record. This inexperience contributes to the overrepresentation of teenage drivers in car accidents — although young Canadians represent 13% of the licensed driving population, they account for 20% of motor vehicle deaths and injuries.1 However, there are ways to save on car insurance for a new driver. Here are a few:
Add the new driver to an existing policy
Rather than insure a new driver as a primary driver on their own vehicle, it’s cheaper to insure them as a secondary or occasional driver of a parent or other adult’s vehicle. It’s also important to add them to the insurance policy right away, as you want the new driver to start building their driving record. Remember, each year of accident-free driving earns a lower insurance premium.
Shop around or bundle your car and home insurance
Different insurers offer different discounts and rates, so be sure to shop around and make sure you’re getting the right coverage for the best rate. Get quotes for your home and car insurance at the same time, as you’ll get a bundling discount. Finding the right insurer is a balance between getting a good price without sacrificing the quality of service and coverage you deserve — working with an insurance broker is a great way to find the right policy for your unique needs.
Take a driving course
You can also reduce your premium if the new driver completes a driving course that is approved by the Ontario Ministry of Transportation. An added perk is that drivers who complete driving school can graduate from their G1 to G2 license in eight months instead of 12 — that’s four months of lower premiums.2 Although the course isn’t free, you can save more with lower rates in the long run. Find an approved driving school near you.
Take advantage of student discounts
If your new driver is in school, they may be eligible for a discount based on their grades. Students also may be eligible for the student away from home discount if they’re listed on your vehicle but live away from home for part of the year. Talk to your insurer to find out if you’re eligible for these discounts.
Talk to your insurer before buying a vehicle
The type of vehicle can significantly impact your premiums. If you’re shopping around for a car for your new driver, talk to your insurer before sealing the deal to see how it will impact your premiums.
Adding a new driver to your policy? Call an OTIP Insurance broker at 1-800-267-6847 or use our self-service options. If you want to get a quote for car or home insurance, call 1-866-561-5559 — don’t forget to ask about a discount for bundling your car and home insurance!
1. Tests.ca
2. Our Driving School