Getting your first car is a big milestone – congratulations! When it comes to shopping for a new vehicle and insuring it, the process can seem overwhelming. Whether it is identifying which insurance information is fact or fiction, ways to improve your insurance rates, or even choosing the right vehicle, the Good Hands Advice team has put together tips that new drivers should know about auto insurance.
The team has also created a document which provides the list of the top 10 questions to ask your insurance provider. Be sure to click the link below to download before your next appointment.
Fact or Fiction: Auto Insurance
We’re here to bust some of the most common misconceptions about car insurance – and let you know which ones are true – to help you choose the right vehicle.
Red cars are the most expensive cars to insure
FICTION: First of all, red or yellow vehicles are not more expensive to insure. Though it was true up until the late 1970s, nowadays, the colour of your vehicle has absolutely no impact on your insurance costs. So, if you’ve always wanted a red, yellow or pink car, don’t let this misconception stand in your way.
Where I live will have an impact on my insurance
FACT: Though colour won’t affect your rates, where you live will. If you live in a densely populated area like a big city, or an area where vehicle collisions and thefts are more common, your insurance premiums will likely be higher.
Getting a parking ticket will increase your premiums
FICTION: Although parking tickets can be costly, they do not have any impact on how much you pay for auto insurance. Regardless of this, remember the best thing a new driver can do is to establish a safe driving record and build up a good history with your insurance provider.
Though these may not be all the misconceptions surrounding auto insurance, these are certainly some of the most common.
Improving your insurance rates
No matter your driving experience, many Canadians are on the hunt to find ways to lower their insurance premiums. However, inexperienced drivers can face certain unique challenges when it comes to insuring their vehicle. Generally speaking, a lack of previous experience behind the wheel will be flagged as a risk factor for possible collisions – and with that increased risk comes increased insurance rates.
So, what can you do to get the best insurance rate?
The first step is to take a driver’s education course, which are offered across the country. While exact discounts will depend on your province and your insurance provider, taking a course may translate into significant savings on your insurance.
If you’re a young driver, or the parents of a young driver, there are additional discounts you can explore. In certain provinces, you can apply for reduced insurance rates based on academic performance – a wonderful perk for achieving good grades! Additionally, young drivers may be eligible for discounted coverage under a parents’ insurance.
Choosing the right vehicle
Another consideration for new drivers trying to improve their auto insurance rates is the vehicle chosen.
If you are looking for the best rates, consider a used vehicle. Not only are they usually cheaper to buy, but older vehicles are also generally cheaper to insure – saving you money upfront and in the long run.
However, vehicles with advanced safety or driver assistance features, like parking assistance cameras or a lane departure warning, are also things insurers will take into account when calculating rates. Not all technology will help lower your rates, however, and, in some cases, these elements can be difficult to repair in the event of a collision. Discuss these factors with your Allstate agent to see how the different vehicles you’re looking to purchase will impact your insurance rates.
How auto insurance rates are calculated is a complex process, which is why you’ll find quite a bit on this topic throughout the Good Hands Advice blog. You can also follow @allstatecanada on Facebook and Instagram for our latest news, tips and tricks.
Hopefully we’ve helped make sense of auto insurance for new drivers – and if you have any more questions, our Allstate team is here for you. Be sure to visit www.allstate.ca to find an agent to assist you.