As a new driver, you naturally struggle to find out how much car insurance is for new drivers. You probably have visited so many websites that had provided you with different information. Unfortunately, questions about car insurance don’t have a one-size-fits-all answer, so this article is prepaid to give you a complete explanation.
Contents
The factors that impact your insurance rate
Many factors affect your insurance rate:
• The Type of Car You Drive
The model of the car you want to buy insurance for influences your insurance rates. For example, sports cars have high insurance rates, because naturally, it costs more to repair or replace. Also, if your car has built-in security features like anti-theft devices, you may qualify for a discount on your car insurance.
• How Much Do You Use Your Car
The more you drive your car, the chances of having an accident are higher. So, you have to pay more for your insurance and vice versa.
Leave a comment and tell us how much your mileage affects your auto insurance.
• Where Do You Live and Park Your Car
Your car insurance may cost more if you live somewhere that the chances of vandalism, accident, or theft are higher, like in urban areas. The climate of the place you live (like if the risk of hail and ice storms are high or not), how much car repair costs in the area you live in, and how much auto insurance fraud occurs where you live affects your insurance. Your parking spot impacts your insurance fee too. For example, if you park your car in your garage, the chances of vandalism, theft, or any other harm to your car decreases; therefore, your insurance fee lowers.
• Your Age
If you’re a new driver and under 25 years old, your insurance will cost more than your parents. Because generally, young drivers are inexperienced, and the risk of crashing the car is higher in teens.
Your Gender The FSCO (Financial Services Commission of Ontario) that the sex of a driver is a variable in how insurance companies determine car insurance rates. Statistically, women get into fewer or less severe accidents than men, and young male drivers pay more for insurance than young female drivers.
• Your Marital Status
Whether you’re married or not impacts your insurance fee. Research has proved that marriage drivers file fewer auto claims; therefore, insurance companies lower the married driver’s fee.
Mandatory coverages in Toronto
A new driver should know that the following insurance coverage is mandatory in Toronto:
A minimum of $200,000 in Third-Party Liability Coverage: This coverage will pay if someone is injured or if their property is damaged.
Statutory Accident Benefits Coverage: It covers personal injuries after an accident regardless of who was responsible.
Direct Compensation – Property Damage (DC-PD) Coverage: If specific criteria are met, the damage done to your car and its contents will be covered.
Uninsured Automobile Coverage: For when you and your family are injured or killed by a vehicle that isn’t insured, or it was a hit and run.
How Much Should One Pay for Insurance in Toronto
The average annual cost of car insurance in Toronto is $2,071. Which means about $172 per month. Ontario is the second-highest car insurance rate in Canada. (Toronto is the capital of Ontario) Please note that the cheapest car insurance policy may not be appropriate for you, so put the time into choosing the proper insurance policy.
How to keep insurance costs down for new drivers:
Nothing can help insurance costs like having a clean record. If you follow the road rules and be a safe driver, your insurance fee will decrease in time. However, other things will help you keep your insurance costs down.
• Get your license early:
Get your license when you are 16 or so. Even if you aren’t going to drive, it will benefit you. You can’t get insurance until you are older anyway. Still, the experience you gained on the road will make insurance companies consider you a mature driver and lower your insurance fee.
• Take supplemental training:
Completing a known driver training program may get you a discount on your insurance premium. Just be sure that your insurance company offers such a discount.
• Consider student discount:
If you’re a student, ask if your insurer provides such a discount on your auto insurance. Most private insurance companies offer this discount rather than public insurance companies. Your school may give alumni discounts, too, so check if any of these come in handy for you.
• Name yourself as a second driver
Being named occasional driver and under your parents’ or gardians’ insurance policy can help you save money, so ask them if you can add to their policy. But if you’re the primary driver of your car, your insurance fee will be much higher than average.
• Remove unnecessary coverage:
If you think there is one coverage in your policy that is unlikely for you to use, remove that coverage. Having more coverage in your policy doesn’t necessarily mean it’s a good one; it just means you’re paying more money.
• Raise your deductible:
The deductible is the money you pay before your insurance company pays for the rest of the damage. If you higher your deductible, you will pay less for your insurance premium. New drivers should take more time choosing their appropriate policy. Don’t get impatient and compare your choices carefully.
