Attending college or university is the first taste of life away from home for many Canadians. While freedom and independence are welcomed by many, others can be overwhelmed by “adulting” – taking care of the details of life that previously their parents addressed. One of those tasks may be car ownership. While cars can make life convenient, they represent an expense at a time when most can work only part-time to support their studies. Bargain hunting and controlled expenses are facts of life and this applies to car insurance as well.
Factors Affecting Student Insurance
There are several factors that can affect student insurance in Ontario. Here are some of the key factors to consider:
- Age: Students who are under 25 years old typically have higher insurance premiums than older drivers. This is because younger drivers are statistically more likely to be involved in accidents.
- Driving experience: Students who are new drivers or have limited driving experience may also face higher insurance premiums. Insurance companies may view these drivers as higher risk, which can lead to higher rates.
- Location: Where you live in Ontario can also affect your insurance rates. If you live in an area with high traffic, congestion, or a high incidence of accidents, you may face higher insurance premiums.
- Type of vehicle: The type of vehicle you drive can also affect your insurance rates. Cars that are more expensive to repair or have a higher likelihood of being stolen may lead to higher insurance premiums.
- Insurance history: If you have a history of accidents, traffic violations, or insurance claims, this can also affect your insurance rates. Students with a clean driving record may be able to secure lower rates than those with a history of accidents or claims.
- Type of coverage: The type of coverage you choose for your car insurance can also affect your rates. For example, opting for a higher deductible or a lower level of coverage may lead to lower premiums, while choosing comprehensive coverage with a low deductible may lead to higher rates.
It’s important to note that insurance companies use complex algorithms to calculate insurance premiums, so the factors that affect your rates may vary based on the specific policies of your insurance company. If you’re a student in Ontario and are concerned about the cost of car insurance, it’s a good idea to shop around and compare rates from different insurance providers to find the best deal for your needs.
Cheap car insurance for students in Ontario
The cost of student car insurance in Ontario can vary widely based on several factors, including age, driving record, vehicle make and model, and the insurance company you choose. Here are some hypothetical examples of what a student might expect to pay for car insurance in Ontario based on age:
- 18-year-old student: An 18-year-old student with no previous driving experience and a clean driving record might expect to pay anywhere from $2,500 to $6,000 per year for car insurance, depending on the make and model of their vehicle and the insurance company they choose.
- 20-year-old student: A 20-year-old student with some driving experience and a clean driving record might expect to pay anywhere from $2,000 to $4,500 per year for car insurance, depending on the make and model of their vehicle and the insurance company they choose.
- 22-year-old student: A 22-year-old student with several years of driving experience and a clean driving record might expect to pay anywhere from $1,500 to $3,500 per year for car insurance, depending on the make and model of their vehicle and the insurance company they choose.
It’s worth noting that these are just hypothetical examples, and your actual car insurance rates may be higher or lower depending on your specific circumstances. It’s important to shop around and compare quotes from multiple insurance companies to find the best deal for your needs. Additionally, maintaining a clean driving record and taking advantage of discounts for good grades or completing a driver education course can also help you save money on car insurance as a student in Ontario.
Ways to get car insurance for students in Ontario
If you’re a student looking for cheap car insurance in Ontario, here are some tips that may help you save money:
- Compare quotes from multiple insurance companies: This is the most important step to finding cheap car insurance. Be sure to compare quotes from at least 3-4 different insurance companies to get the best deal.
- Choose a higher deductible: A higher deductible means you’ll have to pay more out of pocket in the event of an accident, but it also means lower monthly premiums. Consider choosing a higher deductible if you’re a safe driver and don’t expect to get into an accident.
- Look for discounts: Many insurance companies offer discounts for students who maintain good grades or have completed a driver education course. Be sure to ask your insurance company about these discounts.
- Opt for a lower coverage limit: The higher the coverage limit you choose, the more expensive your car insurance will be. Consider choosing a lower coverage limit if you’re a safe driver and don’t expect to get into an accident.
- Choose a safe and practical car: Sports cars and other high-performance vehicles can be expensive to insure. Consider choosing a safe and practical car with good safety features that is less expensive to insure.
- Use telematics or usage-based insurance: Some insurance companies offer telematics or usage-based insurance, which uses a device to monitor your driving habits and adjusts your premiums accordingly. If you’re a safe driver, this could lead to lower premiums.
- Keep a clean driving record: Avoid traffic violations, accidents, and insurance claims, as these can increase your insurance premiums. Be sure to drive safely and obey traffic laws.
By following these tips, you may be able to find cheap car insurance as a student in Ontario. It’s important to do your research, compare quotes, and choose an insurance policy that meets your needs and budget.