Young, single drivers face some of the highest auto insurance rates due to inexperience and the statistical likelihood of a crash being higher. Fortunately, there are some ways that these drivers can reduce their insurance rates and save some money.
New drivers who’ve completed a registered driver training course can usually recoup the cost of the course in the first year, and subsequently save a significant amount of money. The good student discount applies to both high school and university students. Students will be required to present proof of the required average grade in order to qualify and must re-qualify each year.
Another area that can generate savings is vehicle choice. Cars that carry a strong safety rating as well as a lower incidence of theft are the best bet for a young single driver. Sports cars and SUVs already carry higher insurance rates and adding a young driver will also carry a premium increase. A used car may carry a lower value and thus may also come with a lower premium than the same car brand new. Smart shopping when choosing a car is the best way to ensure low rates.
Shopping around for car insurance quotes can also save a lot of money as some insurance companies gear their policies and rating habits towards keeping rates lower for younger drivers, while others have the best rates for more experienced ones. Look for insurance companies offering more discounts for young drivers, and be sure that policies being compared offer the same level of coverage. Sometimes a rate can appear lower because the policy offers less coverage.
Being a good student and educated driver, selecting the right vehicle and insurance can go a long way but there are a number of other issues that can affect your premiums as a young driver. At TSG Insurance we understand this and offer these top car insurance cost-cutting tips for young drivers.
One option is to add a second ‘occasional’ responsible driver, like a parent. While it seems like it should cost more, adding someone who is a much lower risk can bring down the average risk and you may get a cheaper policy. Be cautious however, some secondary drivers may increase your rate so try different people and get different quotes. Note, never add someone as the main driver if they are not, this is known in the insurance industry as fronting and is considered fraud. If you do it and are caught you can face a criminal conviction and your insurance will likely be invalid. If you live with your parents, try a multi-car policy. Fitting an alarm or immobilizer can reduce the bill just as the less you drive, the cheaper your insurance can be.
Auto Insurance in Alberta
As an independently operated company, Thomson Schindle Green Insurance & Financial Services Ltd. (TSG) started as a Southern Alberta firm with simplified auto insurance solutions for people from all walks of life. Take a look around our site to get a better idea of what we offer, and visit your local TSG office in Bassano, Brooks, Calgary, Medicine Hat and the Edmonton area and call to speak with one of our insurance brokers at 1.800.830.9423 today. Or request a free quote today.