Published on 11.09.19
What to Look For in a New Driver Insurance Policy
The time has come; your new teenage driver is going to be on the road by themselves – congratulations! You’re probably a bit stressed out right now, between worrying that your kid might end up in a fender bender and the thought of trying to find the right affordable new driver insurance for them, it’s understandably a lot to think about. Even if you’re not a parent of a teenager but are a new driver yourself, you’re probably having the same concern. That’s why we broke down what you should look for in a new driver insurance policy:
Get your Beginner Driver’s Training.
Sick of asking experienced drivers to let you take a chance behind the wheel? MTO-approved training will get you from a G1 to G2 test in ⅔ time of no training – 8 months instead of a whole year. It will also teach you defensive driving skills to help create sound driving practices to prevent you from being in any accidents and help minimize the impact on any accidents that are unavoidable. Maybe most importantly, it will also provide a lower insurance quote from all companies as they believe your driving skills will improve significantly.
Consider purchasing a used vehicle outright.
Not only will the lower repair/replacement cost help with a better vehicle rating but you’ll also have the option of increasing your deductibles or removing collision and other physical damage coverages from your vehicle, since financing or leasing a vehicle often comes with strict insurance requirements. It may take more work to find your dream car but if you plan ahead you may be able to get on the waitlist for cars coming off lease if you’ve got a certain make and model in mind that’s only a few model years old.
Shopping for your first vehicle.
When shopping for your first vehicle, get an insurance quote before putting down a deposit. You’ll need at least one vehicle in mind to get an insurance quote with. Once you have that, you can start shopping for insurance and a broker can you let know if that vehicle has high vehicle rate groups for passenger injury (liability & accident benefits), collision and other physical damage coverages. Ideally you’re looking for a vehicle that will protect their passengers in accidents, are cheap to repair/replace and are unlikely to be stolen.
Check out our blog on how to research a car’s insurance rate before purchasing.
However, it’s also important to consider the costs of ownership other than insurance – such as gas, oil changes, wipers, tires and other maintenance. Insurance may seem expensive now but it’s expected to go down as you gain experience and your vehicle gets older; all the while, other costs will go up with vehicle aging and cost inflation.
Keep your driving record clean.
Infraction tickets can be expensive. Talking to the prosecutor or going to traffic court can usually help with the price and give more time to pay but did you know any moving violation (i.e. a ticket that isn’t a parking fine) can be held against you if it shows up on your driver’s abstract? Not only will you lose any claims-free discount with your first ticket but a major or criminal conviction can end up putting you in to high risk insurance.
Multiple minor tickets will increase the premium quickly and, after a few, they may even cause your insurance company to not offer a renewal. It may also seem obvious but at-fault claims can also increase your premiums by bringing your driving experience back to 0 years without a claim at renewal. New drivers often don’t have any claims forgiveness as insurance companies like to have a proven track record before this policy change is offered.
Consider sharing a vehicle & simply being an occasional driver.
It may seem like your own keys and a set of wheels will be action packed but you may find that your vehicle spends more time in the driveway than on the road once you have to pay for insurance, gas and other costs. By sharing a vehicle, you may have an occasional driver premium, but this is a good chance to help build up a claims-free insurance history for a fraction of the price of having your own insurance. Also, if you’re looking at going away to school full time – depending on the distance between the vehicle and your school – you can be eligible to cut your occasional driver premium in half with most insurance companies.
Maximize your discounts by timing your G1, G2 & G tests well.
Most new drivers are told they have 5 years from when they get their G1 to finishing the graduated-licensing program in Ontario. However, it’s not as common knowledge that you can minimize insurance costs by timing these tests more efficiently.
With a G1, you usually can not be added as a driver on the policy. This means it won’t cost extra to learn how to drive with someone else’s vehicle. If you get a vehicle with only your G1, you’ll have to find a G2 or G driver to add as the driver.
Once you get your G2 you’ll have to be added as a driver and you’ll usually get a “graduated-licensing” discount for the first year – after that you’ll be restricted from getting the best experience ratings.
With your G license, you get the “graduated-licensing” discount for another year and there’s no restriction on your experience ratings.
An Affordable New Driver Insurance Option
With auto insurance rates increasing in Ontario, it’s more important than ever to shop around to ensure you’re getting the best rate. Foxquilt works with Canada’s leading insurance providers so we can show you different options and the best prices immediately with a fast and easy online quote. An affordable price won’t mean a lack of quality though; we’ll work together to ensure you have the right coverage to protect yourself or your loved ones.