For many people, getting your driver’s license is a big milestone. As a parent of a new driver, it is both exciting and terrifying. And of course, you want to make sure your loved ones are well protected on the road.

It’s no secret, that car insurance is expensive for young drivers. There can be a lot of uncertainty and confusion when it comes to car insurance for new drivers. So how much is car insurance for new drivers? The truth is, there are a lot of different factors that go into insuring a new driver. Here’s what you need to know.

Factors affecting car insurance for new drivers.

Many factors exist that impact the total cost of a new driver’s car insurance premium. Some examples of these considerations include:

• Driver’s demographics. Factors such as age, level of driving experience, and gender all have an impact on your insurance price tag. Higher insurance premiums tend to exist for drivers under the age of 25 as well as male drivers, as statistics have found these groups to be involved in more accidents.
• Type of car. Insurance rates depend on not only the driver but also the type of car! How expensive the repair and replacement costs are in the case of an accident and the likelihood of thief also influence your premium.
• Where you live. Both your city and your neighbourhood have an influence on what you pay for your insurance. This cost is usually higher in cities compared to rural areas, due to the higher frequency of accidents, and neighbourhoods with a greater amount of theft can induce higher costs. Differences can also be seen in province-by-province rates due to government-run insurance programs.
• Driving history. As it is for all drivers, previous instances of traffic tickets or car accidents in your driving history will lead to a higher premium.

How to lower your car insurance premiums as a new driver.

The most crucial part of keeping your premiums to a minimum is to be a safe driver with a clean record. However, there are a few additional things that can help lower your cost.

• Get a licence immediately. Getting your driver’s license as soon as you are eligible, such as age 16, will result in a reduced rate over time. The sooner you start driving, the sooner you start accumulating driving experience. As we noted, it can take six years for new drivers to see a meaningful premium reduction.
• Get secondary drivers’ insurance. Adding a secondary driver to an already existing policy is one way to reduce your premium if you will only be driving occasionally. Unfortunately, in certain instances, a young driver cannot be added as an occasional driver. For example, if your household has three vehicles and three drivers (mom, dad and your teenager), insurance companies will require the youngest driver to be the primary operator of one of the vehicles – normally the highest-rated vehicle.
• Driver’s training. Taking a recognized driver training program will most likely lead to discounts on car insurance for a new driver, as insurers have more confidence in their driving abilities.
• Student discounts. In some cases, insurers give discounts to active students or university alumni.

Tips for buying an insurance policy for teenage drivers.

To start the process of selecting your insurance policy, it is important to consider your vehicle plan. If you plan to share the vehicle with a parent and only drive occasionally, secondary or occasional drivers’ insurance is a good option to reduce your premium.

Next is deciding how much third-party liability coverage you need—which for most cases of teen drivers with little experience, a substantial amount of coverage is necessary to protect themselves if accidents occur. It is smart when searching for insurance that you buy from a licensed insurance broker, as they have access to many partner companies with a variety of coverage options and prices.

Whether you’re a first-time driver or a concerned parent navigating new driving territories for your kids, knowing what you’re getting into with car insurance always pays off. Take some time to proactively investigate car insurance rates for your individual case, then please speak with one of our Bauld Insurance Advisors, who are experts in all things insurance.