Young drivers save money w. good driving record: Auto Insurance Tips

If you are under 25 years of age and want the lowest auto insurance rates, start by building a good driving record, free of at-fault accidents and driving convictions. This includes having good driving habits and obeying the rules of the road, such as wearing a seat belt and not using a cell phone or handheld device while driving. Insurance companies also favour the completion of a recognized driver training course, and the experience acquired by being an occasional driver on the policy of a parent or guardian.
You can also save money by following these tips from the Financial Services Commission of Ontario (FSCO), the regulator of the auto insurance industry in Ontario:

  • Ask about student discounts.
  • Compare rates, either online or by making phone calls and getting recommendations.
    The rate you pay could vary significantly from company to company.
  • Don’t pay for coverage you don’t need.
    For example, if your vehicle is worth less than $1000, collision coverage may not be cost effective if your deductible is $1000 or higher.
  • Consider a higher deductible.
    This means you’ll contribute more towards the loss if you have an auto accident, but it will give you a lower rate.
  • Make payments on time.
    If you’re late the consequences can include the cancellation of your policy, which can impact your ability to get insurance in the future.
  • Make a wise choice on the vehicle you drive.
    For example, if you buy a vehicle with a high theft rate, your insurance rates will be higher.
    Consider choosing a vehicle with good security features.More information on auto insurance is available online at www.fsco.gov.on.ca where you can download the brochure Understanding Automobile Insurance.
    -- News Canada