Just like buying a home might be unaffordable for youngsters looking to start out their life in Alberta, car prices are also on the rise. Though the car prices in Alberta are rising less than the inflation rate in recent times, the overall cost of ownership for young drivers is still pretty high, making it a tough choice. It’s not just about the gas or the maintenance bills. It’s also about the insurance. Based on where you stay, what car you drive and which insurance company you choose as a young driver, auto premiums can range from unaffordable to exorbitant.
Why The Expense?
As an example, a young 22-year old male in Calgary with a 2009 model Toyota Corolla will pay around $2,758 to $4,525 annually while a woman with the same age and car will pay somewhere between $2,494 and $3,560. Drivers in the age of 20 to 24 contribute to around 10 percent of licensed drivers in Alberta and are accountable for nearly 12-16 percent injuries, accidents and fatalities. Compared to the size of their population, young drivers have a disproportionate number of crashes to their account. In such cases, insurers try to match the price with the high risks involved.
*These are examples and not actual clients and are meant for comparison purposes.
What Can You Do?
If you’re a young adult looking to start driving or want to buy your own car, don’t get disheartened by the high prices of insurance premiums. There are small things you can do to save money on your premiums and ensure you are properly covered.
1. Shop Around
Begin by working with your broker for quotes and make sure to try at least 3-5 insurance companies. Remember that some insurance companies are friendly to young drivers compared to others.
2. Stay Away from Certain Models
Models like Honda Civic, various pickup trucks and SUVs are on IBC’s list of most stolen vehicles. Try to avoid such cars to get a lower premium rate.
3. Get the Driver Training Discount
Complete an approved driver training course in Alberta so that you can cut down your premiums.
4. Opt for a Good Student Discount
If you maintain high scores in your university or high school, you can save money on your insurance premiums. For instance, some companies require grade B or a GPA of 3.0 or higher. It is assumed that students with good grades will also be conscientious about following road safety rules.
5. Consider Choosing a Multivehicle Policy
If you’re living with your parents, you can bundle your car with theirs to lower the overall household auto insurance premiums.
6. Look for a Good Driving Discount
If you have a clean driving record for three years, you get a chance to lower your premiums.
The best way to start is by becoming an occasional driver on your parent’s policy. This cost will be less than $1000 annually. Also, when you will finally buy your own car, you’ll have a history of being insured, which will work to your advantage. Finally, make sure to compare rates properly to get the best deal in the market.