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Student auto insurance is for drivers who attend high school, CEGEP or university. To be considered a “student” by most insurers, you must be 25 or under.
Contrary to what the name suggests, it’s not a discount. It’s actually one of the highest premiums in the Canadian auto insurance market.
All insurance works on statistics: groups or events that are more likely to result in a claim pay a higher price. In the insurer’s eyes, a student is still learning to drive and doesn’t have enough experience to be considered a safe driver.
So you’re part of one of the highest-risk groups when it comes to driving, which significantly increases your premiums, regardless of your personal record.
Students who live in Manitoba or Saskatchewan don’t have to pay these higher premiums. In these two provinces, auto insurance is managed by a public system (Manitoba Public Insurance and SGI, respectively), where age isn’t factored into the calculation of an individual insurance price.
Auto insurance prices for students vary based on several factors. Here are the most effective strategies to save on your auto insurance.
If you haven’t already, get your full driver’s licence rather than a learner’s permit. Full-licence holders save an average of 10% on their premium compared to learner’s permit holders.
If you can’t afford to pay for a policy in your own name, become a secondary driver on your parents’ or guardian’s policy. This option is generally less expensive and still allows you to start building a driving record.
Many insurers offer a discount to students with a high GPA. It’s often the best discount available for a student: some providers offer up to 25% off when you show a report card.
As a new driver, installing a telematics system in your car can significantly reduce your premiums. The device tracks your driving (speed, braking, driving hours) and rewards safe driving. Some drivers find the monitoring restrictive, but if you already follow speed limits, the savings are often worth it.
Shop around: compare providers and present the best quote you get to your current insurer before renewing. After comparing two or three insurers, you’ll usually find a better offer than your automatic renewal.
Savings are this way:
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