Young drivers in Canada face some of the highest car insurance rates due to their lack of driving experience and higher risk of accidents. Many insurance companies use a driver’s age, driving history, and type of vehicle when determining their insurance rates.

To get the best rates, young drivers can take steps such as:

1. Maintaining a good driving record: Avoid getting tickets or causing accidents to keep your insurance rates low.
2. Completing a driver training course: Taking a certified and MTO approved driving course can demonstrate to insurance companies that you are a safe driver.
3. Choosing a safe and affordable vehicle: The type of vehicle you drive can impact your insurance rates. Consider purchasing a safe, low-risk vehicle that is affordable to insure.
4. Adding a parent or experienced driver to your policy: Adding an experienced driver to your policy as a secondary driver can reduce your insurance rates.
5. Shopping around: Comparing insurance quotes from different companies can help you find the best deal.

It’s important to remember that the cheapest insurance option may not always provide the best coverage. Be sure to consider both the cost and the level of coverage when choosing your car insurance policy.

How Much Is Car Insurance For Young Drivers?

Here are some average costs of car insurance for young drivers in Canada, organized by province and major city, along with an example driver profile:

Ontario:

• Toronto: $3,500 per year ($292 per month) for a 19-year-old male with a clean driving record, driving a 2018 Honda Civic.
• Ottawa: $2,700 per year ($225 per month) for a 20-year-old female with one at-fault accident, driving a 2016 Toyota Corolla.
• London: $2,800 per year ($233 per month) for an 18-year-old male with one speeding ticket, driving a 2015 Mazda3.
• Hamilton: $3,000 per year ($250 per month) for a 21-year-old female with no prior insurance, driving a 2017 Ford Focus.
• Windsor: $2,900 per year ($242 per month) for a 22-year-old male with two at-fault accidents, driving a 2014 Chevrolet Cruze.

Alberta:

• Calgary: $2,900 per year ($242 per month) for a 19-year-old male with no prior insurance, driving a 2016 Honda Civic.
• Edmonton: $3,100 per year ($258 per month) for a 20-year-old female with one at-fault accident, driving a 2015 Toyota Corolla.
• Red Deer: $2,500 per year ($208 per month) for an 18-year-old male with one speeding ticket, driving a 2016 Hyundai Elantra.
• Lethbridge: $2,300 per year ($192 per month) for a 21-year-old female with a clean driving record, driving a 2015 Ford Fusion.
• Medicine Hat: $2,200 per year ($183 per month) for a 22-year-old male with one at-fault accident, driving a 2013 Nissan Altima.

Quebec:

• Montreal: $2,200 per year ($183 per month) for a 19-year-old male with no prior insurance, driving a 2017 Honda Civic.
• Quebec City: $1,800 per year ($150 per month) for a 20-year-old female with a clean driving record, driving a 2014 Toyota Corolla.
• Sherbrooke: $1,700 per year ($142 per month) for an 18-year-old male with one speeding ticket, driving a 2013 Mazda3.
• Trois-Rivieres: $1,500 per year ($125 per month) for a 21-year-old female with one at-fault accident, driving a 2015 Ford Focus.
• Gatineau: $1,800 per year ($150 per month) for a 22-year-old male with no prior insurance, driving a 2014 Chevrolet Cruze.

Nova Scotia:

• Halifax: $2,000 per year ($167 per month) for a 19-year-old male with one at-fault accident, driving a 2015 Honda Civic.
• Cape Breton: $1,700 per year ($142 per month) for a 20-year-old female with no prior insurance, driving a 2013 Toyota Corolla.
• Truro: $1,800 per year ($150 per month) for an 18-year-old male with one speeding ticket, driving a 2014 Mazda3.
• Kentville: $1,600 per year ($133 per month) for a 21-year-old female with a clean driving record, driving a 2016 Ford Focus.
• Yarmouth: $1,500 per year ($125 per month) for a 22-year-old male with one at-fault accident, driving a 2013 Chevrolet Cruze

Note: These are average estimates and can vary depending on a number of factors, such as the driver’s age, gender, driving record, and type of vehicle, as well as the insurance company and coverage options. The example driver profiles are for illustrative purposes only and do not represent all possible scenarios.

It’s important for young drivers to shop around and compare rates from multiple insurance providers to find the best coverage at the best price. Additionally, taking a defensive driving course and maintaining a clean driving record can help lower insurance rates. Young drivers may also want to consider raising their deductibles or reducing their coverage limits to help lower their premiums.

What Is The Cheapest Car Insurance Company For Young Drivers?

It is not possible to determine a specific list of the cheapest car insurance companies for young drivers in Canada, as the cost of car insurance depends on various factors such as the type of vehicle, driving history, location, age, and gender of the driver, as well as the coverage level selected. Some insurance companies may specialize in providing insurance for young drivers, and these companies may offer lower rates than other companies.

Factors That Contribute To Young Driver’s Car Insurance

There are several factors that contribute to the cost of car insurance for young drivers:

1. Age: Young drivers are considered high-risk due to their lack of driving experience and greater likelihood of accidents.
2. Type of vehicle: The type of car a young driver chooses can impact insurance rates. Sports cars, high-performance vehicles, and luxury cars tend to have higher insurance rates than sedans and SUVs.
3. Driving record: Young drivers with a history of accidents, traffic violations, and claims are considered high-risk and face higher insurance rates.
4. Location: The area where a young driver lives can also impact insurance rates. Urban areas tend to have higher rates due to a greater likelihood of theft, accidents, and congestion.
5. Level of coverage: The amount and type of coverage a young driver chooses can impact insurance rates. Higher levels of coverage, such as collision and comprehensive coverage, typically result in higher insurance rates.
6. Credit score: Insurance companies may also consider a young driver’s credit score when determining insurance rates. A good credit score can result in lower insurance rates, while a poor credit score can result in higher rates.

Young drivers of Canada insurance discounts

There are several discounts that young drivers in Canada may be eligible for that can help lower their car insurance rates. Some of the most common discounts include:

1. Good student discount: If a young driver maintains a good grade point average, they may be eligible for a discount on their car insurance.
2. Graduated licensing program discount: Drivers who participate in a graduated licensing program may be eligible for a discount on their car insurance.
3. Driver training discount: If a young driver has completed a driver training course, they may be eligible for a discount on their car insurance.
4. Multi-policy discount: If a young driver has multiple policies with the same insurance company, such as home or life insurance, they may be eligible for a multi-policy discount.
5. Low-mileage discount: If a young driver doesn’t drive frequently or travels short distances, they may be eligible for a low-mileage discount.

It’s important for young drivers to shop around and compare different insurance options to find the best coverage and rate for their needs. It may also be helpful for them to speak with their insurance agent about any discounts they may be eligible for.

List of cheapest cars to insure for young drivers

The cost of insuring a car for a young driver varies depending on various factors such as the driver’s age, driving history, location, type of car, etc. However, some of the cheaper cars to insure for young drivers in Canada include:

1. Honda Civic
2. Toyota Corolla
3. Mazda3
4. Subaru Impreza
5. Kia Forte
6. Hyundai Elantra
7. Volkswagen Jetta
8. Nissan Sentra
9. Ford Focus
10. Chevrolet Cruze

List of cheapest cars to buy and maintain for young drivers

Some car models that are known to have lower maintenance costs and affordable insurance rates for young drivers include:

1. Honda Civic
2. Toyota Corolla
3. Hyundai Elantra
4. Mazda3
5. Kia Forte
6. Subaru Impreza
7. Volkswagen Golf
8. Nissan Sentra

Car Insurance and Young Drivers FAQs

Here are some frequently asked questions about car insurance and young drivers in Canada:

1. Why is car insurance more expensive for young drivers? Car insurance is more expensive for young drivers because they are considered a higher risk group due to their lack of driving experience and higher likelihood of accidents.
2. At what age do car insurance rates go down for young drivers? Car insurance rates may start to go down for young drivers around the age of 25, as they gain more driving experience and establish a more stable driving record.
3. What can young drivers do to lower their car insurance rates? Young drivers can take a defensive driving course, maintain a clean driving record, and choose a car that is considered safer and less expensive to insure. They may also want to consider raising their deductibles or reducing their coverage limits to help lower their premiums.
4. How can young drivers shop around for car insurance? Young drivers can shop around for car insurance by using online comparison tools, reaching out to insurance brokers, or contacting individual insurance companies for quotes.
5. Can young drivers get discounts on car insurance? Yes, young drivers may be eligible for discounts on car insurance, such as discounts for good grades, taking a defensive driving course, or being a member of certain organizations. They may also be able to get discounts for insuring multiple vehicles or bundling their car insurance with other types of insurance.
6. What types of coverage should young drivers have on their car insurance policy? Young drivers should consider having liability coverage to protect against damages they may cause to others, as well as comprehensive and collision coverage to protect against damage to their own vehicle. They may also want to consider additional coverage options, such as roadside assistance or rental car coverage.
7. Are there any special programs or benefits available for young drivers through car insurance companies? Some car insurance companies in Canada may offer special programs or benefits for young drivers, such as discounts for good grades or taking a defensive driving course. It’s important to check with your insurance company to see what types of benefits are available.
8. Can parents add their young driver to their own car insurance policy? Yes, parents can add their young driver to their own car insurance policy, which may help lower the overall cost of insurance. However, it’s important to make sure that the young driver is listed as a primary driver on the policy and not as an occasional driver to ensure that they are fully covered.

9. What should young drivers do if they get into an accident? If a young driver gets into an accident, they should first make sure that everyone involved is safe and call for emergency services if needed. They should then exchange contact and insurance information with the other driver and take photos of the accident scene and any damages. Young drivers should report the accident to their insurance company as soon as possible and follow any instructions provided by their insurance adjuster.
10. Should young drivers consider usage-based insurance? Usage-based insurance is a type of car insurance that uses telematics technology to track the driver’s driving habits and adjust their rates accordingly. Young drivers may want to consider usage-based insurance as a way to save money on their car insurance if they have safe driving habits.
11. Are there any penalties for young drivers who get a traffic ticket? Young drivers who get a traffic ticket may face fines, demerit points, and higher car insurance rates. They may also face license suspension or revocation if they accumulate too many demerit points or violate certain traffic laws. It’s important for young drivers to obey traffic laws and maintain a clean driving record to avoid penalties and higher insurance rates.
12. How can young drivers build a good driving record? Young drivers can build a good driving record by obeying traffic laws, avoiding traffic tickets and accidents, and driving defensively. They can also take a defensive driving course to improve their driving skills and potentially qualify for car insurance discounts. Building a good driving record can help lower car insurance rates over time.
13. Can young drivers be denied car insurance? Yes, young drivers can be denied car insurance if they are considered a high risk due to their driving history or other factors. In this case, they may need to seek out a high-risk insurance provider or consider alternative transportation options.
14. What should young drivers do if they cannot afford car insurance? If a young driver cannot afford car insurance, they may want to consider using alternative transportation options, such as public transit, carpooling, or cycling. They may also want to explore car insurance discounts and payment plans that can help make insurance more affordable.
15. What should young drivers do if they are in an accident and not insured? If a young driver is involved in an accident and not insured, they may be held liable for any damages or injuries caused to the other party. They may also face fines, license suspension, or other penalties for driving without insurance. It’s important for young drivers to have car insurance to protect themselves and others on the road.
16. Should young drivers compare car insurance quotes from multiple companies? Yes, young drivers should compare car insurance quotes from multiple companies to find the best coverage at the best price. Comparing quotes can help young drivers save money on their car insurance and find a policy that meets their needs.
17. How can young drivers find the right car insurance policy for them? Young drivers can find the right car insurance policy for them by assessing their needs, comparing quotes from multiple companies, and choosing a policy that offers the coverage they need at a price they can afford. They may also want to consider factors such as customer service, claims handling, and any additional benefits or discounts offered by the insurance company.
18. Should young drivers purchase additional coverage beyond the minimum requirements? Young drivers may want to consider purchasing additional coverage beyond the minimum requirements to protect themselves in case of an accident. While minimum coverage is the legal requirement, it may not be enough to cover all the costs associated with an accident, especially if the other driver has significant damages or injuries. Additional coverage options, such as comprehensive and collision coverage, can provide additional protection for young drivers.
19. How does the type of car affect car insurance rates for young drivers? The type of car can have a significant impact on car insurance rates for young drivers. Generally, cars that are more expensive to repair or have higher theft rates will have higher insurance rates. Young drivers should consider choosing a car that is considered safer and less expensive to insure to help lower their premiums.
20. Can young drivers get insurance for a car they don’t own? Yes, young drivers can get insurance for a car they don’t own as long as they have permission from the owner of the car. In this case, the car owner should be listed as the primary insured on the policy, and the young driver can be listed as an occasional driver. It’s important for the young driver to have permission from the car owner and to ensure that they are fully covered under the policy.
21. Should young drivers consider paying for car insurance annually or monthly? Young drivers may want to consider paying for car insurance annually instead of monthly, as this can help them save money on their premiums. Insurance companies often offer discounts for customers who pay for their policies in full upfront. However, paying annually may not be feasible for young drivers who are still establishing their finances. Monthly payments can help spread out the cost of insurance over the year, but may result in higher total costs.