Teaching your kids to drive can prove to be one of the most stressful situations, but also the most rewarding once they become licensed. Some consider it a rite of passage into adulthood.
You want to ensure they learn smart driving practices and remember what you and/or their driving instructor has taught them once they’re ready to hit the road on their own. And, when they become confident young drivers, gone are the days of having to taxi your kids and their friends around.
When Does My Young Driver Need Insurance?
In most provinces, young drivers who have completed the first stage of the licensing process are not covered under their parent’s policy unless the parent reports the young driver to their insurance company. Requirements vary by province, and it’s always best to check with your insurance advisor to be certain that coverage is in place.
Most insurance companies offer discounts for young drivers who pass an approved driver education program. In many cases, new drivers can also earn discounts if they steer clear of any at-fault accidents or chargeable convictions such as speeding during their licensing process and beyond.
If the young driver in your family has their own vehicle, it can be cheaper to add them to your insurance policy; however, talk to your insurance advisor about the benefits of having your kids hold their own insurance policy and the legal protection it can provide you.
Drivers under 25 years old will always pay more for auto insurance. This is because statistics show that accidents decline significantly for drivers after reaching this age threshold.
Gender also plays a role. Male drivers under 25 who are single will always pay more than their female counterparts, because insurance companies consider male drivers much more likely to take risks than females.
The cost of your kid’s auto insurance also depends on the type of car he/she drives. The slower and safer the car, as well as the less likely it is to be stolen, the less money you’ll have to pay in insurance.
Where you live is another consideration that helps determine how much your kid’s insurance will cost. Rural areas experience far less theft and accident rates than urban centres thanks to less traffic and lower crime rates. These factors translate into cheaper auto insurance premiums.
While insuring a young driver may be more expensive, encouraging your kids to keep their records clean is something that will help ensure their premiums don’t increase now as well as make them more desirable to insure once they’re 25.
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