Reducing insurance rates for young drivers

One of the most basic trends in automobile insurance that novice and experts alike can recognize is the relative high expense of insuring an adolescent driver...and certainly, knowing that they fall into one of the highest rate categories of insured rivers can put a damper on the enthusiasm these new drivers have about obtaining a license. However, there are definitely things you can do to reduce that sting:

Take the Young Drivers of Canada course. Many insurance providers are willing to offer lower automobile insurance to drivers who have demonstrated that they have taken and passed the driver's ed course offered by Young Drivers of Canada. This is because it assures them that the driver in question has learned defensive driving, which in turn helps to establish that this driver is less likely to be involved in a collision.

Ask if you can increase the amount you would have to pay for a claim in the event of a collision. This will reduce your premiums. However, there are sometimes additional charges for claims made by young drivers already, so adding to that further could mean a very costly claim should a collision actually take place.

Learn if your provider offers discounts for limited use of a vehicle. Some companies will take into consideration the fact that a young driver will only be driving during the day. This could potentially reduce their risk (and thereby, their premiums) since about half of all collisions involving young drivers occur at night, when visibility is diminished.

Shop around. Don't assume that all providers are offering similar rates. You may be surprised about the variances in prices. And don't be shy about asking your broker to demonstrate for you that you are getting the best rate. A good insurance provider should be happy to do so.

Consider your car make, model, and year. Not all vehicles are treated equally when it comes to insurance premiums. If you are purchasing a car for a young driver and have some control in choosing (as opposed to using a vehicle already in your household), ask your provider in advance which vehicles tend to have lower premiums, and try to select your car from that list.

Have an adult sign on with the young driver. Frequently, including an adult driver on the insurance policy of a young driver can lower the costs.