New Drivers & Auto Insurance Rates in Alberta

new drivers auto insuranceAlberta has 7 classes of driver’s licenses, new drivers must go through the Graduated Driver’s License (GDL) program to get the support, skills, and experience they need to earn a full (Class 5) license. If you have held a Class 7 learner’s license for at least 1 year, are 16 years of age and older and have passed a Class 5 basic road test, you may join the GDL program.

When it comes to insuring young drivers, Legends Collector Vehicle Insurance comes with Team Thomson Schindle Green service and advice: working with insurance companies to get the coverage that meets your needs, and finding the deals that save you money. When calculating the insurance cost for a new driver, a number of factors prevail and to help you understand the process better. Here are a few of those factors to help you understand the process better when speaking with one of our brokers.

To begin, let’s look at insurance costs for a single 22-year-old, on a 2009 Toyota Corolla, assuming:

  • insured with the same company and claims-free for five years;
  • zero traffic tickets;
  • 20,000 kilometres driven per year for pleasure use;
  • $1-million liability coverage; and,
  • $1,000 deductible for collision and comprehensive coverage (Source: Rates.ca).

Coverage, or the annual premium range (October 2014) would be in Calgary: Male $2,758 to $4,525; and Female $2,494 to $3,560.

While there seems to be a wide variance in cost, the premium is based upon a base rate that changes when your age, gender, location of residence, type of vehicle you’re driving, driving record, and claims history are calculated.

Drivers under 25 years-of-age can expect to pay significantly more than older drivers, because statistics show that accident numbers decline significantly for drivers after reaching this anticipated age.

Male drivers in their teens or early twenties are likely to score the worst in every premium pricing category, except for claims history, because insurance companies consider male drivers much more likely to take more risks than female drivers.

Where you live also plays a role, rural areas have far less theft and accident rates than urban areas, which equates to lower car insurance premiums.

Finally, the cost of your insurance also depends upon the type of car that you drive. Sports and other high-end cars are also more likely to be stolen so insurance companies charge more to cover them.

Many insurance providers offer discounts, such as a good grades discount or safety features discount, you may also want to consider being added on one of your parent’s policies, which will save you considerably more than opting for a policy of your own.

Auto Insurance in Alberta

Either way, when you have auto insurance questions or need a quote, trust the TSG Insurance team in Bassano, Brooks, Calgary, Edmonton/Sherwood, Park, or Medicine Hat at 1-800-830-9423 today.

Auto Insurance