It’s common knowledge that auto insurance policies for young drivers are very expensive. Their lack of experience makes them a high accident risk. Thankfully, they can still find an affordable rate due to an insurance price comparison tool that offers a way for consumers to compare the cost of getting car insurance in Nova Scotia across a range of age groups.
A universal rule in the auto industry is that car insurance premiums decrease as drivers age. For example, a driver under 25-years old appears to pay double what those aged between 25-30 years old pay. Consumers aged 46-50 years old pay even less for car insurance premiums, and more senior drivers aged 56-60 years old pay as low as $74 per month.
Auto insurers factor in a number of considerations before establishing the cost of a single car insurance policy in Nova Scotia. Obviously one of the major factors is a driver's personal history, combined with the demographic group the driver fits into. When these factors are considered, it results in high insurance costs for young drivers.
Why is Car Insurance Expensive for Young People in Nova Scotia?
Statistically drivers under 25-years old have more auto accidents that tend to be more severe than those of older drivers, thus their auto insurance claims are higher than the average. Since they are a greater risk to car insurance companies to insure, this equates to higher insurance prices.
Although the group demographic doesn't represent each individual driver and how safely they drive, most auto insurance companies use information obtained from wide-ranging demographics when they calculate insurance premium rates.
However, when a car insurance company looks at drivers individually, they focus their review on the driver's personal driving history. They use traffic tickets and prior claims to get an idea of how safely they operate vehicles. It's most beneficial when they can observe a driving history over a long period of time.
Time is the key factor used to reduce car insurance premiums for young drivers, but it can't be rushed. The age of 25 years old is usually associated with lower insurance premiums, but this is not a rule. If a young driver gets their license later in life they will probably pay higher premiums until they have a driving history, regardless of their age.
How Can a Young Driver Keep Car Insurance Costs Down?
With all these factors working against a young driver, planning is needed to get the lowest premium possible. Thus, how soon a young driver gets their drivers license and a car insurance policy in Nova Scotia is important. The sooner they do it, the better.
Even drivers with a G1 license should be on their parent's car insurance policy. Insurance companies don't charge for G1 drivers because of the limits this level imposes. Using this strategy means a young driver could have an insurance history starting at 16 years old.
Another way to save money on car insurance is for a young driver is to complete an approved driver training program. Auto insurance carriers often give insurance discounts, but it's important to note that insurers will only accept training certified by the Ministry of Transportation when they offer discounts, and not all insurers offer it.
Additionally some insurance companies recognize honour students because of how responsible they appear. A young driver who maintains high grades in high school might be eligible for more discounts. However, not all companies offer this.
If there is more than one insured vehicle in a household, a young driver should be put on the lowest premium vehicle. An older SUV or sedan costs less to insure than a new sports car, for example.
When a young driver goes away from home, the auto insurance company must be informed. The driver should not be taken off the policy but when the insurer knows the young driver has limited vehicle access, they might offer a price break.
Declaring a Young Driver’s Status Accurately
The above money saving tips do not require proof. However, if there is a claim made, the insurance company will investigate and find out if false information was provided. This is why the insurance company needs to be informed. If you were not truthful upfront, not only will the insurance company reject the claim, they might have grounds to cancel your policy entirely, making the young motorist and insured driver at a higher risk for future insurance.
Compare Policies for the Lowest Rates
Some car insurance companies offer better rates than their competition for young drivers. Every auto insurer has its own underwriting rules, so no two insurance companies charge the exact same premium for identical types of coverage. To find the best rate, aggressive research is required. Thankfully, this can be done quickly online.
InsurEye Inc. is a Canadian company that offers many online tools for consumers to research insurance options and prices in the Canadian market place. Our insurance price comparison tool is based on aggregated consumer data and covers most auto insurers across the country. Currently, only auto insurance data is available for Nova Scotia, but InsurEye plans to launch the same service for the province’s home and life insurance soon.
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