Perhaps the most difficult conversation that I have with clients is regarding the subject of young drivers. Unfortunately, young drivers represent an incredible risk for insurance companies and as a result, they are charged an incredibly high premium.
To understand why young drivers are so risky and thus so expensive we have to look at the fact that as a group they are the most likely drivers to have an accident due to their lack of experience. This lack of experience is compounded with the fact that if they are injured in an accident and cannot work, their insurance company could end up having to pay disability payments to them for the next 50 years. A huge expense.
Perhaps the single best way to save money on your young driver’s insurance is to have them complete a young driver training course. Most insurance companies will give the young driver the equivalent of three years of driving experience credit if they successfully complete a young driver course and this could add up to a savings of 3 to 5 times the cost of the course. A good point to remember is that all driver training courses are not equal; make sure you choose a company that is registered with the Ministry of Education or the Ministry of Transportation. If you choose a company that is not qualified their course may not be recognized by your insurer.
Another way to save money on your young driver is to add them on your policy as soon as they get their G1 (or beginners) license. Insurers usually do not charge extra for adding a G1 driver and they will start developing an insurance history right away. By the time your G1 driver gets their G2, they already have 8 to 12 months of experience on their record.
When you are adding a young driver to your car insurance policy - you have to shop around; any time you have a major change in your risk profile you need to ensure you are still with the 'right' insurance company. There can be massive differences in the rates that different carriers will charge for a young driver and your insurance broker should be able to help you shop around for your best rate.
If you have any questions about your young driver, please feel free to give us a call at 519-736-8228.