Insurance for a 16 Year Old

Turning sixteen is a magical time in any teen’s life. So many new and exciting things await – including the privilege of driving. While parents may be less than thrilled about this news, it is something that they must think about to ensure the safety of their teen while driving.

Young Drivers Need Some Form of Car Insurance

Car insurance for a 16 year old, just like any other driver, is mandatory in Canada. Liability coverage must be carried on all registered vehicles at all times. Many parents prefer to add their teen to their current policy. This money-saving technique is usually more affordable than starting a new policy for a 16 year old.

It is true that insurance rates will be higher for those in this age bracket. Anyone requiring auto insurance who is 25 years of age or younger are considered high-risk drivers and will pay more to be insured.

Females are in luck, as their rates for car insurance will be slightly lower than that of their male counterparts. Males are statistically more of a risk of being involved in an auto accident, thus making their premiums more than a female’s policy.

Good grades can also play a part in the cost of insurance for new drivers. Students who receive A’s and B’s are also shown to be better drivers, and those maintaining their grades can expect to receive discounts on the auto insurance premium they will pay.

School for Driving

Some insurance companies may also offer discounts to 16 year old drivers who have satisfactorily completed a driver’s education course. Combining the discounts available for teen drivers can drastically reduce the amount that must be paid to insure them each month. Driver’s ed classes are usually available at the teen’s high school or through local driver training companies. These classes can teach teenagers the rules of the road and how to drive safe.

The cost of the premiums to insure a 16 year old driver will vary upon each individual circumstance. The above factors all play a part in the amount, as does the coverage you wish to obtain, the province in which you reside, and the type of vehicle that is being insured.

Expenses Related to an Auto Accident Can Quickly Pile Up

Insurance is the law in Canada, but it is also a very important financial product for teens. Because they are learning how to drive for the first time, auto insurance can provide a bit of comfort to the parent who is worrying about their teen behind the wheel. Insurance can cover the costs of medical bills, funeral expenses, or property damage that has resulted after an accident. Expenses related to an auto accident can quickly pile up, and auto insurance is their to offer protection to your wallet.