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How to Lower Auto Insurance Rates for Young Drivers

Nov 04, 2015

Facts and tips on how to lower auto insurance rates for young drivers

Get your learners permit as soon as possible. The province of Alberta allows you to take the driving course prior to the first day you can legally take the driving test. This gives you plenty of time to complete the driving course and have your beginner’s license as soon as you turn 15 or 16 depending on where you live.

Take a ministry approved drivers education course that is recognized by all insurance companies.

The insurance savings you receive by taking a drivers education course in the first year of driving usually saves you enough money to cover the cost of the driving course itself.

After completion of the drivers education course you will drive at a higher level of experience than a driver who has not taken the course.

Make sure you are included on your parent’s auto insurance policy as an occasional driver. This will allow you to start building an insurance history which will save you money in the future when you need to have your own insurance policy.

Young drivers are entitled to receive many of the same types of discounts as experienced drivers. These discounts can add up and can save you a bundle. Below is a list of the discounts that you should inquire about when obtaining your auto insurance quote:

  • Drivers Education – Must be a course approved by the Province of Alberta and the insurance company.

  • Graduated License Discount – This discount is offered upon completion of each step of the license requirements. To qualify, you must be accident and convictions free.

  • Multi Vehicle – This discount applies if you insure more than one vehicle by the same insurance company.

  • Multi Line – This discount applies if you have different types of insurance with the same insurance company. For example if you have your home insurance and auto insurance with the same insurer.

  • New Business or a Renewal discount

  • Good Student Discount – Who says it doesn’t pay to have good grades. 

The above discounts added together could amount to a 40-50% discount off of your base premium. For example: A comparison of two drivers, one with the discounts and one without discounts. The total premium for a 19 year old is $1,300 with no discounts. The total premium for a 19 years old who is eligible for discounts which total 40% $780 per year. It is important to note that there is ususally a cap on the total discount allowed.

Technology Pays - Usage of technology by insurance companies can save you money as well. There is new program offered by many insurers that gives a 15% discount if you allow the insurance company to install a small monitor in your vehicle and have it set when a young driver is using the car. The result, the better they drive, the better rate and the more money you save!

For more information, contact one of our brokers to learn more about how you can save.  
CATEGORIES:
  • Auto Insurance