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HomeCar Insurance ResourcesCheapest car insurance for young or teenage drivers

The cost of car insurance for teenage drivers in Canada can vary significantly depending on the province and city they live in, as well as their age and driving record. Here are some approximate ranges for five major cities in each province:

  1. Ontario:

  • Toronto (ages 16-19): $3,000 – $7,000 per year
  • Ottawa (ages 16-19): $2,500 – $5,500 per year
  • Hamilton (ages 16-19): $3,000 – $6,500 per year
  • London (ages 16-19): $2,500 – $5,000 per year
  • Kitchener-Waterloo (ages 16-19): $2,500 – $5,500 per year
  1. Quebec:

  • Montreal (ages 16-19): $1,800 – $3,500 per year
  • Quebec City (ages 16-19): $1,500 – $3,000 per year
  • Laval (ages 16-19): $1,800 – $3,500 per year
  • Gatineau (ages 16-19): $1,500 – $3,000 per year
  • Longueuil (ages 16-19): $1,800 – $3,500 per year
  1. British Columbia:

  • Vancouver (ages 16-19): $3,500 – $6,000 per year
  • Surrey (ages 16-19): $3,000 – $5,000 per year
  • Burnaby (ages 16-19): $3,000 – $5,500 per year
  • Richmond (ages 16-19): $3,000 – $5,500 per year
  • Abbotsford (ages 16-19): $2,500 – $4,500 per year
  1. Alberta:

  • Calgary (ages 16-19): $3,000 – $6,000 per year
  • Edmonton (ages 16-19): $2,500 – $5,500 per year
  • Red Deer (ages 16-19): $2,500 – $5,000 per year
  • Lethbridge (ages 16-19): $2,500 – $5,000 per year
  • Medicine Hat (ages 16-19): $2,500 – $5,000 per year
  1. Manitoba:

  • Winnipeg (ages 16-19): $2,500 – $5,000 per year
  • Brandon (ages 16-19): $2,000 – $4,000 per year
  • Portage la Prairie (ages 16-19): $2,000 – $4,000 per year
  • Steinbach (ages 16-19): $2,000 – $4,000 per year
  • Thompson (ages 16-19): $2,000 – $4,000 per year

These are just approximate ranges and your actual cost may vary depending on your specific circumstances. Additionally, there are many factors that can affect your car insurance premiums, such as your driving record, the type of car you drive, and the level of coverage you choose.

How to get cheap insurance in Ontario for new drivers?

cheap car insurance

Getting affordable car insurance for new drivers in Ontario can be challenging due to their lack of driving experience, which places them in a higher risk category for insurers. However, there are several strategies new drivers can employ to help reduce their insurance premiums:

  1. Complete a Driver’s Education Course: Taking a Ministry of Transportation-approved driver’s education course can make a new driver eligible for a discount. It also provides better driving skills, which can help in avoiding accidents and claims.
  2. Choose a Safe, Used Car: The type of car you drive affects your premium. A less expensive, used car that has good safety ratings will generally cost less to insure than a new, luxury, or sports car.
  3. Higher Deductibles: Choosing a higher deductible (the amount you pay out of pocket before the insurance kicks in) can lower your premium. Ensure you can afford the deductible in case of a claim.
  4. Bundle Insurance: If you or your family have other types of insurance, such as home or renters’ insurance, bundling them with the same provider might qualify you for a discount.
  5. Limit Coverage: If you’re driving an older car, consider whether comprehensive and collision coverage are necessary. Sometimes, the cost of these coverages exceeds the value of the car itself.
  6. Install Safety Features: Equip your car with winter tires (mandatory for a discount in Ontario), approved anti-theft devices, and other safety features to qualify for discounts.
  7. Occasional Driver: If you live with someone who has an established driving record, consider being added to their policy as an occasional driver, which can be cheaper than having your own policy.
  8. Shop Around: Obtain quotes from multiple insurance providers. Prices can vary significantly from one insurer to another.
  9. Maintain a Clean Driving Record: While this is a longer-term strategy, avoiding traffic violations and accidents will benefit your driving record and can lead to lower premiums in the future.
  10. Ask About Discounts: Always inquire about available discounts. Some insurers offer discounts for good grades if you’re a student, for being a member of certain associations, or for various other reasons.
  11. Usage-Based Insurance (UBI): Some insurers in Ontario offer UBI programs that track your driving habits through a telematics device. If you exhibit safe driving behaviors, you can receive a discount.
  12. Pay Annually: Some insurers offer a discount if you pay your premium as an annual lump sum instead of monthly payments.
  13. Review Coverage Annually: As your situation changes, regularly review and adjust your coverage to ensure you’re only paying for what you need.

Lastly, always communicate with an insurance broker or agent, as they can often provide insights into how best to optimize coverage and costs for new drivers in Ontario.

Cheapest cars to maintain for young drivers

multiple cars

The cost of maintaining a vehicle can depend on a variety of factors, including location, driving habits, and how well a car has been maintained previously. However, some vehicles have earned a reputation for being economical and relatively cheap to maintain, especially for young drivers.

Here’s a list of some of the cheapest cars to maintain. Please note that these are average figures and actual maintenance costs can vary:

  1. Toyota Corolla – Average yearly maintenance cost: $362
  2. Honda Civic – Average yearly maintenance cost: $368
  3. Toyota Camry – Average yearly maintenance cost: $388
  4. Honda Accord – Average yearly maintenance cost: $400
  5. Ford Focus – Average yearly maintenance cost: $385
  6. Hyundai Elantra – Average yearly maintenance cost: $375
  7. Kia Soul – Average yearly maintenance cost: $395
  8. Subaru Impreza – Average yearly maintenance cost: $415
  9. Mazda3 – Average yearly maintenance cost: $405
  10. Nissan Sentra – Average yearly maintenance cost: $392

Cheapest cars to insure for young drivers


General Tips for Lowering Insurance Premiums:

  1. Choose a car with a good safety record: Typically, sedans and compact cars with good safety ratings have lower insurance premiums.
  2. Avoid high-performance or luxury vehicles: Sports cars, luxury brands, and cars with larger engines generally cost more to insure.
  3. Consider older cars: The value of the car can affect insurance costs. Newer cars might be more expensive to insure than older models.
  4. Usage-based insurance programs: Some insurers offer discounts to drivers who agree to have their driving habits monitored.
  5. Defensive driving courses: Many insurance companies give discounts to new drivers who complete accredited defensive driving courses.

Province by Province Guide:

  1. British Columbia (BC)
    • Average Rate: ~$1,200 – $3,000/year ($100 – $250/month)
    • Examples of Cheaper Cars to Insure: Honda Civic, Toyota Corolla, Hyundai Elantra
  2. Alberta
    • Average Rate: ~$1,500 – $3,500/year ($125 – $292/month)
    • Examples: Ford Focus, Chevrolet Cruze, Mazda3
  3. Saskatchewan
    • Average Rate: ~$1,000 – $2,500/year ($83 – $208/month)
    • Examples: Toyota Camry, Honda Accord, Hyundai Sonata
  4. Manitoba
    • Average Rate: ~$1,200 – $2,800/year ($100 – $233/month)
    • Examples: Volkswagen Jetta, Honda Fit, Toyota Prius
  5. Ontario
    • Average Rate: ~$2,500 – $5,000/year ($208 – $417/month)
    • Examples: Honda CR-V, Toyota RAV4, Ford Escape
  6. Quebec
    • Average Rate: ~$800 – $2,200/year ($67 – $183/month)
    • Examples: Nissan Sentra, Kia Forte, Chevrolet Malibu
  7. Atlantic Provinces (New Brunswick, Nova Scotia, PEI, Newfoundland and Labrador)
    • Average Rate: ~$1,000 – $2,500/year ($83 – $208/month)
    • Examples: Ford Fusion, Subaru Impreza, Hyundai Tucson

What are the cheapest car insurance companies for young drivers?

Car insurance premiums vary significantly based on a multitude of factors. For young drivers in Canada, insurance tends to be higher due to their lack of experience and, statistically, a higher likelihood of getting into accidents. However, the specific rates and affordable options can vary from province to province, as each has its own regulatory environment and risk factors.

To get the most accurate rates, it’s essential to obtain quotes directly from insurers or use comparison tools specific to each province. However, I can give a general overview of cheaper options in some provinces and reasons they might be more affordable:

  1. British Columbia (BC):
    • ICBC (Insurance Corporation of British Columbia): As a crown corporation, ICBC is the sole provider of basic auto insurance in BC. All drivers must get their primary insurance through ICBC. You can, however, get optional coverage (like collision or comprehensive) from other insurers.
  2. Alberta:
    • Belairdirect: They often offer competitive rates for young drivers, likely due to discounts for bundling and online tools that encourage safer driving.
    • TD Insurance: Known to provide discounts for multiple vehicles or bundling with home insurance, potentially leading to savings for families.
  3. Saskatchewan:
    • SGI (Saskatchewan Government Insurance): As a crown corporation, it provides compulsory auto coverage for all Saskatchewan drivers. Optional coverages can be bought from private insurers.
  4. Manitoba:
    • MPI (Manitoba Public Insurance): Another crown corporation, it is the primary provider of auto insurance in Manitoba.
  5. Ontario:
    • Intact: One of Canada’s largest personal property and casualty insurance companies. They often have competitive rates and various discount programs.
    • Belairdirect: Known for competitive rates, especially for younger drivers.
    • TD Insurance: Offers various discounts, including student and alumni discounts.
    • Desjardins: They offer auto insurance across Canada and might have suitable rates for newer drivers.
    • Sonnet Insurance: An online-only insurer that can offer competitive rates.
    • Co-operators: Known for its customer service, they might offer competitive rates for new drivers.
    • CAA: Members might get discounts on auto insurance.
  6. Quebec:
    • SAAQ (Société de l’assurance automobile du Québec) provides the personal injury portion, while property damage coverage is purchased from private insurers.
    • Desjardins Insurance and Belairdirect often emerge as competitive options.
  7. Atlantic Provinces (New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador):
    • TD Insurance and Belairdirect are among the popular choices. Their digital tools, bundling options, and specific discounts can lead to more affordable rates.

Reasons for lower rates:

  • Bundling Discounts: Many insurance providers offer discounts if you bundle auto insurance with other products (e.g., home or renters insurance).
  • Telematics: Some insurers offer discounts for allowing them to monitor driving habits.
  • Student Discounts: Providers may offer discounts for students maintaining good grades.
  • Defensive Driving Courses: Completing accredited courses can result in discounts.
  • Higher Deductibles: Opting for a higher deductible can reduce premium costs.

What are the cheapest independent brokers for young drivers?

  1. Ontario: The car insurance market in Ontario is one of the most competitive in Canada. Popular brokers such as RateLab can help compare rates from multiple insurers. Direct insurers like Belairdirect or Sonnet might offer competitive rates as well.
  2. Quebec: Direct insurers like Desjardins or Belairdirect are popular choices. However, using brokers that compare multiple rates might yield a more competitive price.
  3. British Columbia: Historically, ICBC (Insurance Corporation of British Columbia) held a monopoly on basic auto insurance in BC. However, drivers could seek additional optional coverage from independent insurers. It’s always good to shop around.
  4. Alberta: Brokers such as Surex or Sharp Insurance might help young drivers find the best rates by comparing multiple insurers.
  5. Manitoba and Saskatchewan: These provinces have government-run auto insurance through MPI (Manitoba Public Insurance) and SGI (Saskatchewan Government Insurance) respectively. However, drivers can purchase additional coverage from private insurers.
  6. Nova Scotia, New Brunswick, Prince Edward Island: Brokers that operate in Atlantic Canada, like MCT Insurance or Archway Insurance, might help young drivers compare rates.
  7. Newfoundland and Labrador: Anthony Insurance and Wedgwood Insurance are just a couple of options, but comparing rates is still key.
  8. Yukon, Northwest Territories, Nunavut: The market is more limited in these territories, but it’s still essential to get quotes from any available providers.

FAQs car insurance for young drivers

Here are some frequently asked questions (FAQs) regarding car insurance for young drivers, along with their answers:

1. Why is car insurance more expensive for young drivers?

Answer: Young drivers, especially those under 25, are statistically more likely to be involved in accidents compared to older, more experienced drivers. Due to this increased risk, insurance companies charge higher premiums to cover potential claims.

2. What can young drivers do to reduce their insurance premiums?

Answer: Several ways can help young drivers save on insurance:

  • Complete a driver’s education course.
  • Maintain a good academic record, as some insurers offer student discounts.
  • Drive a vehicle with a good safety rating.
  • Consider a higher deductible.
  • Use telematics or “pay-as-you-drive” insurance options if available.
  • Bundle with other insurance policies (e.g., renters or home insurance).
  • Avoid traffic violations and accidents to benefit from a clean driving record.

3. Can I stay on my parents’ insurance policy?

Answer: Yes, many insurance companies allow young drivers to remain on their parents’ policy, which can be more affordable than having a separate policy. However, the primary driver of the vehicle must be correctly listed, and all drivers should be declared to the insurer.

4. Does the type of car I drive affect my insurance rates?

Answer: Yes, the make, model, age, and safety features of a vehicle can significantly impact insurance rates. Sporty cars, luxury vehicles, or those with a high theft rate are typically more expensive to insure.

5. How does my location affect my insurance rates?

Answer: Urban areas, with higher traffic and increased risk of theft or vandalism, often have higher insurance rates compared to rural areas. Furthermore, each province or territory has its regulations and insurance market, leading to varying rates across regions.

6. Do I need full coverage as a young driver?

Answer: While basic liability coverage is mandatory, whether you need full coverage (collision and comprehensive) depends on the value of your car and if you can afford repairs or replacement without insurance. If you’ve financed or leased your vehicle, the lender may require full coverage.

7. How often should I shop around for better insurance rates?

Answer: It’s a good practice to compare rates annually or whenever there’s a significant change in your situation, such as buying a new car, moving to a new location, or adding another driver to your policy.

8. Will my rates decrease as I get older?

Answer: Generally, yes. As young drivers age and gain more driving experience without accidents or violations, their risk decreases. By maintaining a clean record, many drivers see a drop in premiums around the age of 25.

9. What happens if I get into an accident or receive a ticket?

Answer: Depending on the severity of the violation or accident and whether you were at fault, your insurance rates might increase. It’s essential to report any accidents to your insurer, even minor ones, as failing to do so might violate your policy terms.

10. Are there any specific insurance companies or brokers known for offering better rates to young drivers?

Answer: While some companies market themselves as being more affordable for younger drivers, rates can vary widely depending on various factors. It’s always best to compare quotes from multiple providers to find the best rate and coverage for your specific situation.

11. How do grades affect my car insurance rates?

Answer: Many insurance companies offer “good student” discounts for young drivers who maintain a certain grade point average, typically a B average or higher. The idea is that responsible students are often responsible drivers. It’s essential to provide proof of academic performance to qualify for such discounts.

12. Can I save by opting for a higher deductible?

Answer: Yes, selecting a higher deductible usually means lower monthly premiums. However, it also means that in the event of a claim, you’ll pay more out-of-pocket before the insurance coverage kicks in. It’s vital to strike a balance and ensure you can afford the deductible you choose.

13. Does the color of my car affect my insurance rates?

Answer: Contrary to popular belief, the color of a car does not influence insurance rates. What matters more is the make, model, age, engine size, and the vehicle’s safety features and ratings.

14. What’s the difference between third-party and comprehensive insurance coverage?

Answer: Third-party insurance only covers the damages done to other parties (e.g., other vehicles or property) and injuries to other people in an accident where you are at fault. It does not cover your vehicle or injuries. Comprehensive insurance, on the other hand, covers damage to your car from non-collision events like theft, vandalism, or natural disasters.

15. Can I get temporary car insurance as a young driver?

Answer: Yes, some insurance providers offer temporary or short-term car insurance policies, ideal for young drivers who may be driving for a short period, such as during school breaks. It’s a flexible option but may not be as cost-effective as other long-term solutions.

16. Are there benefits to being a named driver on a more experienced driver’s policy?

Answer: Being a named driver on a policy, such as a parent’s, can be more affordable for young drivers. However, if the young driver is the primary user of the vehicle, they need to be listed as the primary driver to avoid “fronting,” which is considered fraud and can lead to denied claims and other consequences.

17. What is a no-claims bonus (NCB) or no-claims discount (NCD)?

Answer: A no-claims bonus or discount is a reduction in your car insurance premium because you haven’t made any claims for a specified period. As years pass without any claims, the discount increases, significantly reducing premiums over time.

18. Do I need additional coverage for modifications made to my car?

Answer: If you’ve modified your vehicle, it’s crucial to inform your insurance company. Some modifications can increase the risk or value of the car, impacting insurance rates. Failing to disclose modifications can result in denied claims.

19. How does gender affect car insurance rates for young drivers?

Answer: In some regions, gender used to be a factor in determining car insurance rates because statistical data showed differences in driving behavior between young men and women. However, many jurisdictions now prohibit gender-based pricing to promote equality.

20. What should I do after an accident to ensure my insurance claim goes smoothly?

Answer: After ensuring everyone’s safety, document the scene, gather information from all parties involved, and contact your insurance company as soon as possible. Being organized and providing accurate details can expedite the claims process.

About the Author: Valerie D. Hahn

Valerie is an insurance editor, journalist, and business professional at RateLab. She has more than 15 years of experience in personal financial products. She strives to educate readers and ensure that they are properly protected.

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