For students, car insurance can be seen as a significant financial burden. This is on top of many other expenses that may be new to you such as tuition, housing, and other living costs. Added to this, young drivers under 25 pay more for their premiums than anyone else.

Due to this, students need to do their research to find the most affordable car insurance that fits in with their budget. Here we’ll look at the factors that affect car insurance and how to find the best rates. By the end, you’ll have a clear idea of how to get the cheapest car insurance for students.

Understanding Car Insurance in Canada

While the exact rules between provinces can change, car insurance is a legal requirement across Canada. Common mandatory coverage, including in Ontario, is third-party liability, accident benefits, and direct compensation property damage. On top of this, you can opt for optional coverage such as comprehensive and collision coverage.

With car insurance, the premium you pay is essentially an assessment of risk. The riskier the insurance company perceives you, the more you will pay. Young drivers are deemed the highest risk group as they are statistically more likely to be involved in accidents.

This may be the biggest cost factor, but other factors apply too. While there is nothing you can do to change your age, knowing what these other factors are can allow you to see how to get the cheapest car insurance for students.

Related Article: https://www.marathoninsurance.ca/blog/how-much-does-car-insurance-cost-in-ontario/

Factors Affecting Car Insurance Premiums for Students

For young drivers, life insurance doesn’t get significantly cheaper until you pass the age of 25. Until then, here’s what else can affect your premium cost.

Gender – Young male drivers have the highest risk when it comes to car accidents. Thus, if you are male, you are going to need to pay even more.

Driving Experience – This can link in with age, but not always. The more experience you have, the less you pay. For example, a 22-year-old with four years of driving experience will generally pay less than a 22-year-old with no driving experience.

Location – Urban areas usually have higher traffic volumes and therefore more accidents. These areas also typically have higher crime rates. It adds up to these areas paying more for insurance.

Vehicle – Vehicles that are moderately priced and have high safety ratings will be cheaper to insure. High-performance and high-value cars are going to be more expensive.

Driving Record – Keeping your driving record clean is a great way to reduce your premiums.

Coverage – Opting for the minimum coverage will lower your premium. However, it’s often worth paying a little more to get better protection.

Tips for Finding Cheap Car Insurance for Students

As we’ve seen, there are many challenges for students when it comes to high premiums. Here are the best methods of finding the cheapest quote.

Shop Around – Insurance companies will all assess risk differently. Due to this, it’s essential to compare quotes from multiple providers. Online comparison tools are great for this, or you can use an insurance broker to do the hard work for you.

Seek Out Discounts – There can be car insurance discounts specifically for students. Often these are for students with high grades. Other discounts can be found for completing driving courses or bundling insurance.

Usage-Based Insurance – Another option is usage-based insurance. This is where how much you pay is tied to how you drive. This is done via a device plugged into your vehicle or an app. Good driving habits can keep your premium down.

Increase Your Deductible – Increasing the amount you pay before your insurance kicks in can also be a useful way to lower premiums. You just need to ensure you can afford the deductible if you do have an accident.

Related Article: https://www.marathoninsurance.ca/blog/what-are-some-tips-to-lower-car-insurance-in-ontario/

Staying on a Parent Policy

A common idea to save money is by being a registered driver on your parent’s policy. However, it’s vital to know that listing yourself as an occasional driver but actually being the primary driver is illegal. This is commonly called ‘fronting’. Not only can invalidate your policy if you have an accident, but it can also be deemed as fraud.

Due to this, you can only be on your parent’s insurance if you are accurately representing the situation. For example, if you’re using a parent’s car to travel a few days a week, being on their insurance is a genuinely good way to save money.

While fronting can be tempting to lower costs, it can end up having a huge impact on both you and your parents. By registering car insurance under your own name, you’ll more quickly build up a clean driving history, which will lower your premiums.

Final Thoughts

So, what is the cheapest car insurance for students in Canada? The answer to this question changes for everyone. You’ll only find the cheapest car insurance for you if you take all the above tips into account and shop around.

One great way to do that is by working with an insurance broker. They’ll analyze your circumstances and match them with a great quote at the best price. If you’re considering car insurance, then give Marathon Insurance a call today and we’ll be delighted to help.