Young drivers may take part in riskier behaviours, statistics show, wwhich is why they are more expensive to insure.
Article content
Car insurance is expensive for new drivers in Ontario, but drivers who are not only new but also male face a pricier challenge.
Advertisement 2
Article content
A 20-year-old male driver in Toronto with no claims and no driver training could pay as much as $13,418 annually to insure a recent model Honda Civic, according to a report from Rates.ca.
Article content
Article content
Meanwhile, a swap of genders and a female who is the same age, driving the same car with the same experience would pay $9,607 a year.
It doesn’t take a mathematician to see that’s nearly $4,000 ($3,811 with a calculator) less.
“The data demonstrates that young drivers or otherwise new drivers are more likely to have a claim and not only that are more likely to have a more expensive claim,” Daniel Ivans, an insurance expert with Rates.ca, told CTV News.
Rates will also depend on other factors, including where you live in the province.
One of the few times younger doesn’t equal better
Young drivers may take part in riskier behaviours, statistics show, which is why they are more expensive to insure.
Your Midday Sun
Article content
Advertisement 3
Article content
The report noted that drivers under the age of 25 are 66% more likely to have speeding tickets, 53% are more likely to have any type of ticket, and 17% are more likely to have an accident.
The best thing and perhaps only thing young drivers can do to get those numbers down is to gain experience while maintaining an accident- and ticket-free record.
“For every year you can demonstrate you’ve been driving, that’s an indication to an insurance company that you’re a much lower risk,” Ivans recommended.
How to lower the cost
Certified driver’s education programs can save that aforementioned 20-year-old nearly $2,000.
Yes, driver’s ed comes at a cost, but it’s one of those instances of short-term pain for long-term gain.
Advertisement 4
Article content
“Many will give a new driver three years’ worth of credit experience, so the courses are well worth it,” Ivens told Driving.ca.
He also noted that spying apps that record how you drive — from speeding, screeching stops and quick starts — can deliver great savings for good drivers.
“With some insurance companies, you can see a 30% reduction come renewal time,” he noted.
RECOMMENDED VIDEO
We apologize, but this video has failed to load.
The car you drive matters
According to the Insurance Institute for Highway Safety, teens have crash rates nearly four times those of drivers 20 and older, so what young motorists drive matters.
“You’re going to want to choose a car that isn’t too big, isn’t too small, and (isn’t) too fast,” Consumer Reports’ Keith Barry told CTV.
“Not only is it going to be cheaper to insure but it’s also going to give that teen driver a better sense of their speed.”
The three used models in the $20,000-and-less price range that get top marks are Honda Civic, Toyota Corolla, and Hyundai Tucson.
As for insurance, shop around, Barry suggested, as different companies have different policies.
“As we found and as we find over and over, loyalty doesn’t pay,” he explained. “Shop around because insurance companies want to attract you with lower rates.”
Article content
