Youth is Wasted on the Young; But Dollars Don’t Have to Be

If you are newly-licensed, you are probably excited to finally be in the driver’s seat. The feeling of freedom and independence can be intoxicating. Before becoming drunken with delight, give some sober thought to the serious subject of auto insurance.

For starters, you should know that automobile insurance is not optional. It is a mandatory legal requirement for any driver operating a motor vehicle on Canada’s public roads. You have no legal choice in the matter.

Unfortunately, your limited driving history can severely narrow your financial choices as well. But wait; don’t brake to a screeching halt just yet.

Be Young – Not Foolish

Insurance companies are for-profit business entities. Insurers generate income from the premiums they charge in exchange for protection against losses.

You are still young and have not proven yourself to be responsible yet, while you are seated behind the wheel of a car. For all they know, you might be a secret Saturday night drag racing enthusiastic just itching for the next 120km/h battle down the back roads. This scares them, so they extract the maximum price from your pocket. In short, you will be considered “high risk” until you have driven for a few years.

Stay Ahead of the Game

You may not realize it, but you do have some tricks up your sleeve to help you avoid losing your shirt to high insurance rates.

Enroll in a driver education course. By producing a certificate of completion from such a class, you demonstrate commitment and responsibility. Insurers view this very positively. This upbeat attitude will be duly reflected in reduced rates for auto insurance from some insurance companies.

Get added to your parents’ policy as an occasional driver. This allows you to gain a few years driving experience without the exorbitant premiums of a separate primary driver policy for yourself.

Ask for a student discount. Many insurers offer discounted premiums for those with excellent marks in school, or members of academic honour societies. Some insurers view such accomplishments as evidence of uncommon maturity and judgment.

Time is going to be the main cure for your current coverage cost ailment. With enough planning and responsible driving habits, the prognosis for substantial future savings is very optimistic. Stay on the straight and narrow path. You will be amazed at how far it will take you.