How to lower your car insurance costs



Getting a driver’s license in Ontario is a crucial process for young people. The most important requirement for driving a car on the roads of Ontario is a driver’s license. However, you need to have a valid owner’s permit, license plate, and insurance. Depending on several variables, some of which are beyond your control, car insurance can be a significant expense. There are some ways to lower this monthly or yearly cost, though, as there always are with car-related expenses.

Why is the insurance cost more expensive for new drivers?

Studies show that young and new drivers are more likely to have an accident while driving. Inexperience and, most of all, carelessness are the most important reasons for the high risk of accidents. Because of this, the increased risk of accidents also leads to an increase in insurance costs for young people in Ontario. It is also worth remembering that: In Ontario, individuals under the age of 25 are considered young and forced to pay more insurance.

Factors that are difficult to replace insurance expenses

Insurance cost in Ontario varies depending on many different factors. It is difficult to replace some of them under the current conditions. Age, gender, and place of residence are some of them. For example, if you are a male under the age of 25, you will pay considerably high insurance costs. Because men have a greater risk of having an accident than women and young people are likely to cause an accident while driving. If the traffic congestion, crime, and theft rates in the place where you live are high, as well as if there is little indoor parking, you will again face more insurance expenses.

What should young people pay attention to pay fewer insurance premiums?

As we mentioned above, age, gender, and place of residence are some of the factors that young people will not change to reduce their insurance premiums, whereas insurance premiums for young people can be significantly reduced as a result of paying attention to some issues. Now let’s explain them in order:

  • Buying the correct car that suits your purpose: You should make your car choice from well-known brands that can meet your purpose, are compatible with the city of Ontario, accepted safety components, and are not overly luxurious cars. Thus, insurance costs can be reduced.

  • Choosing the right coverage: The type of coverage you have is one of the main variables affecting your auto insurance rates. You should check the Ontario regulations to choose the basic policy that will cost less than collision and comprehensive coverage. If you want to reduce the cost of your auto insurance, you can select a plan with a greater deductible. Be advised that, doing so may raise your risk if your coverage is reduced or you choose a high-deductible plan. If you choose this course of action, be aware that if you file a claim, you might have to pay more out of pocket.

  • Searching the insurance companies: Different insurance companies may give different prices for the same conditions. Some companies evaluate the exemptions differently and can organize advantageous campaigns for young people. These issues should be investigated before entering into an insurance agreement.

  • Examine the advantage of bundles:  Insurance companies do not stick to car insurance only. Home insurance, workplace insurance, and health insurance are some of the areas. Companies can offer very advantageous price offers for each insurance if the insurance is made in a package. Therefore, this issue becomes worth studying.

  • Enroll in a Ministry-Approved beginner driver education course: Completing the BDE course in a driving school officially authorized by the ministry in Ontario, provides a valuable insurance discount for you. You will learn the rules of driving in more detail. You will have a chance to take the G2 road test 4 months earlier than usual and a great insurance discount.

    Get in touch with us or see the details for beginner driver education packages here.