Student car insurance gets a thumbs up from us!

You may be a defensive driver, but if you’re 25-years-old or under, you fall into the high-risk category and pay more in premiums. But all is not lost. You don’t have to wait until you turn 26 (even though it’s partially a myth) to save on your auto insurance premiums. Having a clean driving record is critical, but there are also other ways to find savings.

• Some auto insurance providers like Desjardins offer discounts just for being enrolled in an accredited post-secondary institution.
• If you still live at home, another option is to bundle your insurance with your parents’ policy to get a multi-car discount.
• You can also be an occasional driver on your parents’ insurance, which can keep costs down and still lets you drive the car (this really only applies if you’re living at home while you’re in school).
• Some insurance companies offer a ‘good student’ discount. You have to be a full-time high school or postsecondary student, be between the ages of 16 to 24, and have a 3.0 GPA or higher.
• Try a telematics program. When you sign up for one, you give permission for your insurance company to monitor your driving habits, usually through a mobile app. Good drivers can get discounts for up to 20%.

According to LowestRates.ca data, this is what people between the ages of 14 and 25 (Alberta drivers can get a learner’s permit at age 14) can expect to pay per year, on average, for auto insurance, broken down by province and territory.

Average car insurance rates for drivers under 25 years old by province

* Data for these provinces is unavailable due to an insufficient amount of quotes or because auto insurance is provided by the provincial government (the case in MB, B.C., SK).

Remember to compare auto insurance rates on LowestRates.ca to find the best policy and package for you. You can get quotes from 30+ insurance providers.

If you plan on attending school in another province, will it affect your auto insurance? It may, because different provinces and territories have different insurance rules, so you will have to take a few steps to keep your current rate.

If you are taking a car with you to school, you can remain on your parents’ insurance as long as your permanent address remains the same. You have to let your insurance provider know that you’re planning to move because you’ll have a new garaging address (where your car will be parked). This may affect your rates, depending on where you’re parking your car. For example, your premiums might increase because car thefts in your new neighbourhood or fairly common. On the flip side, your rates might go down because you’re now living in a rural area.

If you own your car and hold the title for it, you’ll have to get your own auto insurance policy.

If you’re not taking a car to school, keeping your insurance, or staying on your parents’ insurance, lets you use the car when you’re back for the holidays. It provides an ongoing history, which will net you better premiums in the future. Even if you don’t have a car at school, simply having auto insurance provides liability coverage. Meaning, if you get hit by a car or are in an accident while driving a friend’s car, you’ll still have insurance to pay for any expenses.

Whatever the situation, you should check your institution for discounts including the good student discount.

Age is just one thing that gets factored into your premium. There are several other factors that are used to calculate how much you’ll pay for auto insurance.

• Gender: Women often get lower rates than men.
• Your licencing level: Insurers view drivers with a learner's permit to be at a higher risk for accidents.
• Where you live: Urban areas tend to lead to higher premiums because higher density can mean more risks such as accidents or theft.
• The kind of car you drive: If you own a high-performance vehicle or one that is popular with thieves, you could pay more.
• Driver education courses: Not only can they make you a better, safer driver, you can also get a better rate from your insurance company by taking a course from a recognized driving school.

It can be challenging to find cheap car insurance as a young driver, but there are things you can do to control your costs.

If you’re planning to live at home: how to get cheaper car insurance.

If it’s not absolutely necessary, consider forgoing buying your own car. If you own a car, your auto insurance policy needs to be in your name. It’s much cheaper to be listed as an occasional or secondary driver on your parents’ car insurance policy.

It’ll raise your parents’ premium by a bit, and they may ask you to pay the difference, but it’ll be a lot cheaper than having your own policy. Being listed as a secondary driver as soon as you get your learners’ permit is a good idea. You’ll start accumulating a driving history and that’ll help you find savings in the future — as long as you don’t get into any accidents or rack up any driving offences.

However, you can only be listed as a secondary driver if you truly only use the family car occasionally. If you’re using it every day as your main mode of transportation, then you’re the primary driver. If you get into an accident while driving, your parents’ insurance company might take a dim view of your status as a secondary driver and deny your claim.

If you’re planning to move away: how to get cheaper auto insurance.

If you plan on moving away for school, and you know you’ll need a car to get around, then you will need to get your own car insurance.

In this scenario, early preparation is key. Here are some things you can do to ensure you pay less:

• Get your drivers’ licence on time and ask your parents to put you on their insurance as a secondary driver. The sooner you build your driving and insurance history, the better off you’ll be when it’s time to leave home.
• Keep your grades up. Many auto insurance companies offer discounts to students who maintain a certain GPA.
• Opt into a telematics program. Telematics refers to the practice of insurance companies monitoring your driving habits and rewarding with discounts of up to 20% for good road behaviour. Most companies offer this service through an app, while some require you to install a sensor in your car. Insurance companies in Canada are not allowed to use the data to penalize you.
• Work on your credit score. Start building a solid credit history. Insurers reward customers for having good credit scores (showing your credit score to insurers is optional). In Canada, the minimum age to apply for a credit card is 18.
• Compare auto insurance rates. A lot of young drivers default to the insurance company trusted by their parents. This isn’t necessarily a bad idea — you may be able to bundle your policy with your parents’ existing policy. Insurance companies offer discounts to clients who provide repeat business. At the same time, you may be able to find greater savings with a new insurance company. In general, it’s a good idea to shop around and see what other insurers are willing to offer you before you lock into a policy.

There’s no definitive answer to this question — it really depends on your driving and insurance histories.

For many post-secondary institutions, students who enroll at age 21 are considered mature students. Unfortunately, insurance companies don’t share this view: people 25 and under pay higher car insurance premiums compared to adults with clean driving records.

If you’re under age 25, you’ll still qualify for so-called ‘good student’ discounts for maintaining a high GPA, which can lower your premium by as much as 25%.

However, if you’re over 25, have a full licence, and are going back to school, there are a few things working in your favour:

• If you’ve held car insurance continuously up until this point, you’ve built a solid insurance history.
• If you have alumnus status at a post-secondary institution, you may be able to access discounted group insurance rates through your alma mater if you’re searching for a new insurance company.
• If you already have car insurance, you might qualify for a discount for being a graduate or for belonging to a certain professional group.

Regardless of your age, as a mature student you should try the following strategies to save on auto insurance:

• Allow your insurer to view your credit score. This is usually optional, but if you have a good credit score, your insurance company might offer you a discount on your premium.
• Join a telematics program. Policyholders who let their insurance company monitor their driving can get up to 25% off on their car insurance. This is usually done through an app. Insurers, by the way, are not supposed to use that information against you.
• Shop around for insurance. It’s actually crazy how differently car insurers price insurance — it can vary by hundreds of dollars a month. See for yourself by comparing quotes.