How to save on motor insurance as a new driver
Now that we have described the top carriers and how expensive it is to ensure a new driver, let’s talk about some ways to save.
Stay on the car insurance of your parents
If you’re a new teen driver, the best way to get cheaper car insurance is to stick to your parent’s plan. Your parents’ insurance background and driving history will likely yield lower rates than you would on your own. By staying in your parent’s car insurance for as long as possible, you can save thousands of dollars a year.
You need to know how to find the right policy for you. Here are the important elements to look for and their meaning.
This is what is covered by a particular insurance policy or, in other words, what the insurance policy will provide you with in financial compensation. For example, a third party liability insurance policy will only provide you with financial compensation if you have to pay for someone else’s property repairs, while a full policy will do so and you will be reimbursed for damages. to your car.
The limits are the maximum amount of coverage. For example, you can purchase auto insurance covering $ 5,000 of accidental damage. This means that the insurance company will pay up to $ 5,000 for repairs, but no more.
These are the conditions under which the insurance company will not pay. For example, you could be covered for car theft, with an exclusion for unlocked vehicles. This means that you can make a claim if your car is stolen, but if it was unlocked at the time of the theft, the insurance company will not pay.
These are fixed fees that you must pay when making a claim. You can choose a higher deductible for lower premiums or a lower amount for higher premiums.
This is the main cost of your car insurance policy. The premium is the regular amount you pay for having an active policy. It can usually be paid monthly or annually.
These are additional costs that you must pay besides your premium. Your policy may require you to pay administration fees, cancellation fees, assistance fees and, of course, deductibles.
6 Tips for saving on car insurance for young drivers
Even if you are a professional in shopping, finding car insurance for young drivers is affordable. The insurance premium is so high that it is often a real obstacle to buying a vehicle. Fortunately, there are some tricks to lower the premium. Here are 6 tips for reducing insurance premiums for young drivers.
1. Take out insurance once you have received your license
Whether you are in possession of a student ID, a trial license or a Class 5 license, you should, as far as possible, take out insurance once you have obtained the license. Even if you drive little or no, the markup is still high for occasional male drivers. We, therefore, recommend that you be insured as a second or occasional driver of a parent’s vehicle. With a driver’s license insurers grant a driver’s license of “3”. Due to the very early completion of this insurance, the young driver begins his insurance history. When they finally buy a vehicle and assert themselves as the main driver, they can receive a lower premium every year than they would have never been insured.
2.Consolidate multiple policies with the same insurer
Like most Quebec residents, you probably have several insurance contracts: one for your home, one for your car, and possibly one for your motorbike or ATV. Why not entrust all these policies to the same insurer? Not only will this be easier to handle for you, but your insurer will also let you use additional discounts if you consolidate all your policies with them.
You can also check with them if it is worthwhile to ensure all the vehicles of your family under the same conditions.
3. Opt for a green vehicle
Most companies offer drivers with environmentally friendly vehicles
(ie low fuel consumption vehicles), electric vehicles and hybrid cars an additional discount of up to 20%. However, the vehicle is more expensive to buy.
4. Change car insurance in advance
Some insurers allow you to take out the insurance several months before the effective date of the contract. This allows the driver to terminate his current contract and avoid cancellation fees while using the unique promotions of the new insurer. The driver is also protected against later rate increases and increases associated with possible accidents during the term.
5. Before buying a vehicle, contact your insurance company
Insurance premiums can vary from model to model by several hundred dollars a year, even for vehicles in the same category. If you contact your broker before buying a car, you will be informed in advance about the number of insurance premiums, help you choose your vehicle, and help keep your budget.
6. Look for your insurance
Just because you’re a young driver does not mean that there are no companies that are interested in this type of profile and that are more competitive than others. Of course, young drivers statistically have more accidents than older insureds, but they also have years of travel and insurance premiums to pay. In addition, some insurers who wish to avoid shopping and taking out new insurance every year offer attractive loyalty discounts for young drivers.
It’s all about shopping around for your insurance in order to get the optimal conditions that will motivate the insured to stay in the same company for longer. As Lussier Dale Parizeau is the largest insurance broker in Quebec
For a young driver, insurance coverage always costs more, even with an average loss ratio, than for an experienced driver. However, there are some tricks that help new licensees reduce their bills when creating their car insurance history.
Look for discounts
There are many discounts in the world of car insurance. Many are subject to state and insurance restrictions. Below we have listed some popular discounts. Keep in mind that a large number of discounts on your motor insurance policy will not halve your premium. However, they can be helpful.
- Good/safe driver
- Several drivers
- Several guidelines
- Payment by bank account
- Fully paid
- Good student
- Group membership/affinity discount
- Homeowner discount
- Green vehicle discount
Below you will find further explanations of these discounts.
Discounts for multiple policies
You may be eligible for a discount with multiple insurance policies by having multiple insurance policies with an insurance company. Common policy combinations are homeowners and landlords as well as self-tenants. These discounts can be applied to both policies.
The discount you receive depends on your cover combination.
For example, you get a bigger discount on bundling homeowners and automated policies than adding a renter’s insurance to your auto coverage. The logic is simple: a homeowner’s insurance brings the insurer much more revenue than the tenant’s insurance.