When determining the premiums you are going to pay for your insurance policy, insurance provider’s factor in your age and the number of years you have been driving.
During their first years of driving, new drivers and student drivers are considered a high-risk class of drivers. Generally, these drivers struggle to find affordable auto insurance and in most cases can only qualify for high risk car insurance — which comes with relatively higher premiums.
Why is car insurance so expensive for students and young drivers?
Most auto insurance companies base the price of premiums on the following: your personal information, the car you’re insuring, the type of cover you want, and the level of excess you want.
The information above is not always sufficient to base a quote on. For this reason, providers of auto insurance Alberta also use statistical information from years to determine the level of risk. Consequently, young and new drivers can only get high risk car insurance quotes.
The statistics from the past years show that new drivers and student/young drivers have higher accident levels. When behind the wheel, new drivers and student drivers are likely to take risks and less likely to spot potential hazards.
Young and new drivers are considered a high risk group of drivers. For this reason, they only qualify for high risk car insurance — whose cost is considerably high.
How a young/student driver can reduce the cost of insurance?
Earn a no-claims discount
One of the easiest ways a young or student driver can reduce the cost of insurance is by taking advantage of insurance discounts available. A popular discount you can make use of is the no-claims discount. To earn this all-important discount, you need to drive safely by observing all the traffic rules. By driving carefully, you decrease the chances of being involved in accidents thus improving your chances of earning the no-claims discount.
Go for a car in a low insurance group
Different types and makes of cars have different rates of premium. The different rates of premium are based on how much it would cost an insurer per claim. So, to save on the cost of insurance, consider investing in a car that is likely to cost less per claim – this way you will pay less in premiums. To establish what type of car will cost you less insurance, search for the best and worst cars to insure in Canada before buying that car.
Take advantage of the good student discount
Instead of waiting for years to build up your no-claims bonus so that you can save on auto insurance Alberta, consider taking advantage of other discounts like the good student discount. With the good student discount, a young/student driver can save up to 25 percent if he she attains good grades in college. This discount applies to full-time college and high school students who maintain an average grade of B and above.
Usually this auto insurance discount lasts even after graduation. It stops being operational when the young driver attains 25 years of age.