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When Does Car Insurance go Down in Ontario

Although most people will accept the insurance rates that they are given when they choose an Insurance provider one of the main questions they what an answer to is when does the car insurance go down?

At What Age Does Car Insurance Go Down?

Birthday Cake

Each time you renew your policy.

This is the short answer for insurance reduction. What it means is that most often insurance companies do a review of the driver prior to renewing their insurance. They will look at the driver’s licence status. For example, has the driver obtaining insurance graduated from a G2 to a G licence. If so there may be a slight reduction in the cost of the policy.

For experienced drivers quite often their insurance will go down upon renewal if the metrics dictate such as change. For example, the driver may be eligible for one of the discounts that the insurance company is offering. There may be a discount for being accident-free for example. But, there are many cases where the premiums go up instead of down at renewal time.

Does Car Insurance Go Down When You Turn 25?

age 25

Not necessarily.

Most who have vehicle insurance know that age is a factor when it comes to insurance companies setting the premiums for an insurance applicant. They will assume that this is more pertinent for new drivers who are under the age of twenty-five which is mostly true. However, every insurance company is able to set its own metrics for determining what to charge for premiums and when to increase or decrease them. This means some companies may reduce the premiums when an insured reaches 25 but other companies may not.

Does Car Insurance Go Down at 21?

It could.

It will all depend on the rules that the Insurance company has set for themselves. Some companies want to retain their young drivers as they move on to becoming experienced ones. To do this they may offer small incentives along the way by reducing the insurance when they reach the age of twenty-one, then again when they turn twenty-five.

When Does Car Insurance Go Down For Females?

g2 woman driver

Insurance companies do look at female drivers differently than males. This may seem sexist but they do this based on historical data. This shows overall that female drivers pose fewer risks to the insurance companies compared to males. Insurance companies are all about data and metrics when it comes to setting premiums.

This is usually applicable to young drivers as well. In general, it is believed that the female rates for young female drivers will begin to reduce once they are twenty-one. Whereas with the guys it’s when they become twenty-five. This is not a hard and fast rule. It will depend on each individual insurance company to set their policies regarding premium rates.

When Does Car Insurance Go Down For New Drivers?

Usually by age twenty-five.

New drivers usually fall into the category of young drivers as the majority of new drivers are under the age of twenty-five.

First Time Car Insurance

The better way to look at car insurance rather than by young or new drivers is to look at first-time car insurance.

A young driver is considered by most insurance companies to be those who are under the age of twenty-five.

A new driver can be any age but would be classed as a first-time car insurance driver. Which basically puts them in the same category as the young driver. Focusing on the “young” being inexperienced more so than years.

The Risks

Setting premiums for drivers is all about determining the risks for the insurance companies. The higher they perceive the risks the higher the premiums are going to be. This means that first-time vehicle insurance buyers don’t have any experience. It is mandatory to have insurance in Canada. Therefore Insurance companies know that if a driver has never had insurance before then they are definitely a new driver.

Outside Experience

There are some immigrants who come to Canada who spent many years driving in their country of origin. Unfortunately, this experience is not recognized by the Insurance companies. There may be some recognition of this when it comes to the G1 and G2 licencing, but nothing that is going to make a major difference to the insurance rates.

Beyond The Young and New Driver Premiums

It isn’t just the young or new drivers that are concerned about insurance rates. Experienced drivers are often not happy with the amounts they are paying. They want to know when they are going to be able to enjoy premium reductions. It is not uncommon when renewal time comes around that some actually see their rates go up.

Why Do Rates Go Up?

Increase Auto Insurance Cost

There can be several reasons why car insurance rates go up for an individual. Some of these factors are in their control while others are not.

An insurance company may be realizing a loss and they will increase their rates to recoup this. This is not the fault of the drivers who have experienced a rate increase.

If there does not seem to be a valid reason as to why the rates have increased it may be time for the insured to do some insurance shopping. This will allow them to do some rate comparison. It should never be assumed that all insurance companies are the same.

Being Pro-Active in Insurance Premium Reductions

A simple reason why a driver may not be enjoying reduced premiums is that they have not gone after them. It means getting to know your insurance company and what incentives they offer. Such as discounts. Your insurance provider may not apply these to your premiums unless you make them aware that you qualify for them.

A good example is a senior who has gone many years accident-free and is still not seeing any reduction in premiums.

It is important to become proactive in getting your vehicle insurance reduced. You can only do this if you are fully informed about insurance in general and specifically what your insurance company has to offer you.

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