When students are looking for car insurance at first they don’t think about what it is going to cost them
Most students focus on reaching that age where they are old enough to drive and what it is going to take to get their licence. When that time comes to sign up for their insurance they are quite surprised at what it can cost.
Do Students Get Discount On Car Insurance?
Yes, students are able to get discounts on car insurance.
There are many different insurance companies and they each have their own policies. For example, Allstate has an insurance program for College students. It does offer a discount that comes with where the car is kept while the student is in college.
If the student is going to school at a minimum of 100 miles away from their parent’s house they may be entitled to an insurance discount. If the car is being kept at the parent’s house. This is because the student will not be driving the car as much.
Another insurance company like Belair places their students into categories to determine their rates and whether there will be any discounts.
The Commuter – Attending University or College
The student is under the age of twenty-three and still lives at home with their parents. They are using their car to get back and forth to school during a regular workweek. When doing so they are travelling both highways as well as city streets. This group of students also uses their vehicle for other purposes like meeting up with other students to study or to spend some time socializing.
The Urban Student – Attending University or College
These students are under the age of twenty-three and have taken a driving training course. The students are not living at home but instead are living on their own in an apartment and is not sharing accommodations with others. The only time the car is used is for is running some errands on the weekend and maybe to get away for the weekend. The car is also used by the students to perhaps go back home a few times a month so they visit with their parents who do not live in the city.
The Boomerang Student – Attending University or College
This group of students are under the age of twenty-three and live in a student residence. The car is not used very often. At most, it is used to travel back home on breaks and holidays to see parents who live a long-distance away.
Each of these groups will receive a different insurance rate. What this shows is what insurance companies take into account along with other factors when determining the cost and discounts for student drivers.
How Much Is Car Insurance For A Student?
There is no specific rate that is applied to car insurance for students. There are some common factors that are going to be taken into account for every student. But, from there it may be that there are additional circumstances that will change the cost of the premiums.
Two students at the age of twenty-three can apply for insurance from the same Insurance provider but get different rates.
Some of the rate reductions can come from:
- Being enrolled in a post-secondary institution that is accredited.
- Being part of bundled insurance on the parent’s insurance policy
- Being insured as an occasional driver when using the parent’s car
- Good student discount which means being between the ages of sixteen to twenty-four and have a minimum of a 3.0 CPA.
- Being willing to take part in a telematics program. This means the Insurance Company is able to monitor the student’s driving habits.
Average Student Car Insurance Cost in Canada
Not only are different Insurance Companies going to offer different rates these are going to vary according to the provinces. Here are some examples for those drivers under the age of twenty-five.
- Average car insurance cost for students around $4,228
- Quebec student car insurance costs average around $2,135.
- New Brunswick student car insurance costs average around $1,664.
Which Company Is Cheapest For Student Car Insurance?
Every insurance company sets their own criteria for what they are going to charge for car insurance.
Again the Insurance Companies will vary and have different metrics for what they will offer student insurance discounts for.
Some Insurance companies that are recognized for offering the cheapest rates for students are:
Allstate offers a variety of different discounts for the parents of students as well as for the students themselves. These include:
- Good student driver discount
- Away at school discount
This insurance company may be offering the cheapest rates based on the discounts that may be available which are:
- Good student discount
- Good driver discount
- Membership discounts
- Organization discounts
The potential savings on insurance can range from $100 to $200.
Other Ways to Save on Your Student Car Insurance
This should go without saying, but a single accident or ticket can increase insurance that’s already high to begin with. That should be some pretty potent motivation to slow down and watch where you’re going. Accidents, tickets, and traffic convictions stay on your driving record for years, so ask yourself if it’s worth it before you hit the accelerator.
2. Shop around
Like any service or product, you can always find slight differences in price if you shop around. The way that Toronto car insurance premiums are calculated changes based on the carrier, so, make a few calls to get some quotes. You may be surprised to find that you can save money by simply switching (or threatening to switch) providers.
The easiest way to lower premiums is to increase your deductible. Don’t take this option lightly, though–if you ever need the insurance, you’ll be facing higher out-of-pocket expense.
4. Review your coverage
When it’s time to renew, it’s a good idea to call your car insurance provider and review your coverages. Make sure you’re paying for the services you need. If you’re paying extra for roadside assistance but have coverage through another group, you may want to cancel that and pocket the savings. Skim your policy and make sure you’re not getting anything extra that you don’t need to be paying for and if you find something, have it removed immediately. Check with other insurance providers as well, since they may be able to offer you better prices for the same coverage. But resist the urge to change insurers in the middle of your policy term. You could end up paying early cancellation fees to your current company
If you live in Toronto and drive a Hummer, you’re going to pay a lot for your car insurance. If you drive a Ford, you’ll pay less. Pick a car that’s affordable to insure, even if it’s not the car of your dreams. As long as it safely gets you from point A to point B, it should be good enough.
Ask your insurance company if they offer discounts and then dig deep for affiliations. If you don’t drive a lot, you paid your car off early, or have a garage, you may be eligible for a discount. Insurance companies offer a number of discounts, but they may not announce these until you ask. Check to see if your company offers bundling discounts to combine home and car insurance or new products such as usage-based insurance, which qualifies you immediately for discounts.
Instead of driving in fear of a fender bender every day, look for a plan that includes accident forgiveness. That way, if you do have a small accident, your car insurance premium won’t skyrocket.
8. Don’t be afraid to be disloyal.
Most people assume that they are getting the best rates possible for being a long-term customer. However, if your plan isn’t reviewed and rewritten periodically, there’s very little incentive for the insurance company to give you a deal. Make sure you shop around once in a while even if you don’t intend to switch carriers, just to make sure you’re getting the best price. If you find a lower coverage, call your current provider and ask them to meet it.
9. Get the proper training.
If you’re a new driver, taking an approved course can help curb car insurance Toronto costs. New drivers are the most expensive to insure, so it’s important to get all the credentials you can to keep costs down. Even if you’re not a new driver, but you’ve taken a driving course, you should let your insurance company know and find out if there is a discount for taking it.
With a little creativity, it’s easy to find ways to cut your car insurance costs. Try the ten tips above and you’re bound to find at least a small discount that’s available to you. Do your homework and get cheap car insurance that will be less painful for your wallet.