New drivers in Ontario are hitting the road all the time. To avoid potential problems, it’s good to know about the options for cheap car insurance for first-time drivers. Having the proper coverage is key to saving one’s self in the event of accident or theft.
By paying a monthly premium, an insurance company will compensate for any losses as agreed upon in the driver’s policy. When it comes to first-time drivers, having coverage is paramount. This is especially true since they’re new to the road and lack experience.
Cheap car insurance isn’t always easy to find. New drivers often have higher premiums, based on the fact that many companies will label them as “high-risk drivers”. For those seeking affordable car insurance options in Ontario, consider the following companies with good rates and/or discounts.
The following are some options for cheap car insurance for first-time drivers in Ontario:
SGI Canada offers rates that sit on the lower end of the spectrum, in terms of price. Keep in mind that newer drivers will have higher rates initially; however, the longer they drive without reporting any issues, the better their premiums will become over time.
For a 16-year-old male who has just received their license, and who has no insurance, they can expect SGI Canada to quote approximately $319/month, or $3,830 annually. There is also the potential for discounts if the new driver has recently graduated from a G1 class to a G2 class, or from a G2 class to a full G license.
First-time drivers might consider speaking with a representative, to learn about their qualifications for new driver discounts.
Belairdirect also offers some of the lowest quotes for first-time drivers; a 19-year old female who has just gotten her license without insurance can expect to pay approximately $4,895 per year. This comes to approximately $435/month.
Belairdirect has a lot of options for new drivers, including insurance for students in a wide range of situations. Individuals can take advantage of a student discount, which can also be reduced if the individual has completed their driver course certification.
The following image illustrates car insurance rates for students, based on their age and a 100/300/100 liability:
|Age||Average rate with 100/300/100 liability||Average rate with minimum liability|
Of course, the older the student is the better their rates become. However, students who are using their vehicle for education purposes, such as traveling to and from classes on a daily basis may be eligible for insurance discounts.
While the Canadian Auto Association (CAA) offers quotes that are mid-range in price, this well-known company is one of the largest consumer-based organizations in Canada. They currently cater to more than six million individuals and offer an impressive range of policies to suit the unique needs of every driver.
For young drivers, a basic quote for car insurance costs approximately $600-$650/month, totaling approximately $7,700 annually. However, CAA offers extensive options to young drivers and can provide various discounts for prior training and education. CAA is also well-known for providing drivers with roadside assistance, which can be a huge advantage for families with young drivers.
Allan Insurance Group
The Allan Insurance Group is dedicated to helping first-time drivers get the insurance coverage they need, without costing a pretty penny. Cheap car insurance may be easier to obtain from a company like the Allan Insurance Group, who offer discounts for drivers who have completed their training, and who complete their AccuRate™ program.
This program is for first-time drivers ages 16-24, and the technology tracks the safety of the driver over a period of time. Once the program is complete, drivers may be eligible for a discounted rate, based on their tracked driving skills.
Factors Affecting First-Time Drivers Quotes
Many car insurance companies such as State Farm, CAA, and belairdirect offer discounts premiums, in the case of multi-vehicle policies. For families who own more than one vehicle and who are willing to group the cars under one policy, this can be an option to save.
For cheap car insurance for first-time drivers, completing driver training prior to obtaining insurance can help with rates. Driver training courses offer in-class education as well as in-car lessons prior to G2 and G license certifications.
Type of Car
The type of vehicle that a first-time driver will be operating can also have an effect on their premium prices. For example, a 4-door vehicle may be regarded as a safer vehicle compared to a 2-door vehicle. The car’s make, model and year can all have an effect on the final number. This is often due to the increased risk factor associated with new drivers who own a brand-new car.
Insurance companies may provide lower quotes for drivers with roadside assistance. Companies like CAA offer all kinds of packages for assistance that offer towing, repairs and assistance for a monthly membership.
It is true that first-time drivers lack the experience that is required for a low insurance quote. However, there are still opportunities to acquire discounts. To find cheap car insurance for first-time drivers in Ontario, it is beneficial to speak with insurance company representatives. Narrow your search to a handful of companies, to learn more about their unique discounts and specials.
By offering the unique details of the first-time driver (i.e. car type, training, roadside assistance, etc.), drivers may find that their rates are lowered significantly.