Congratulations new driver! You’ve just received your driver’s license, and you’re ready to venture out on Alberta’s roads. Thinking about getting some wheels to get around? We have all the information you need to begin this new chapter. Just one light touch on the brakes before you hit the road: you need to find the right insurance plan.
Drivers under the age of 25 are statistically more likely to be involved in an accident. This means insurance companies consider drivers under the age of 25 to be higher risk, which is why young drivers often have a more expensive insurance bill. Once you have a few years of accident-free experience behind the wheel, your insurance rate is likely to go down.
Keep reading to learn more about insurance for young drivers in Alberta, including tips and tricks that will help you save on your car insurance.
Factors that determine car insurance premiums in Alberta
Insurance companies consider many factors when determining your rate. In addition to your age, they consider how much driving experience you have and how often you drive. Insurance companies also take the vehicle you drive into consideration, as they gather extensive information to calculate which vehicles are riskier to insure. Companies can determine which cars have a higher probability of getting into more accidents; which cars are more expensive to repair, and which cars are a criminal’s favourite type to vandalize or steal.
What does this mean for a new driver looking to purchase and insure a new vehicle? It means it’s time to do some research! The car that you choose to drive can play a big part as to whether your insurance premium is affordable or not.
Below is some intel on the most and least expensive cars* to insure for drivers under 25 in Alberta.
What are the five most expensive cars to insure in Alberta?
- BMW 328i 4DR
- GMC Sierra 1500
- Chevrolet Camaro LT
- Mitsubishi Lancer Evolution MR
- Chevrolet Equinox LS V6
What are the five least expensive to insure in Alberta?
- Mazda Protégé 5
- Dodge Dakota SLT V8
- Subaru Impreza WRX Wagon
- Chevrolet Cobalt SS
- GMC Jimmy S Series
How can a young driver save on car insurance in Alberta?
Here are a few tips that can help you save money on your premium:
- Attend a driver’s education course. Many insurance companies offer a discount if you learned how to drive from a trained professional through an accredited program. You can find a list of the courses near you on the Government of Alberta's website.
- Increase your deductible. A higher deductible means lower monthly rates. However, if you are involved in an accident, you will have to pay more out of pocket. Make sure your deductible is something you can afford. (You can learn more about premiums and deductibles in our blog post).
- Consider a vehicle’s safety features such as: anti-lock brakes, airbags, and car alarm. Insurance companies will consider these safety features and they may result in a lower rate.
- Talk to an insurance broker. Our brokers are insurance experts who will take the time to find an insurance plan that makes sense for you. Plus our brokers are local – so they really understand the kind of insurance you need because they drive the same roads!
Tips on building a new driver’s insurance history:
Insurance history is accumulated over time. Following these tips will help your insurance rate decrease over time.
- Avoid lapses in coverage. If there are periods of time where you are not insured, you can be considered a new driver again in the eyes of an insurer, as you have not had consistent coverage in place.
- Stay conviction free. Receiving tickets for speeding or distracted driving will increase your premiums dramatically.
- Pay on time. The industry standard on payments is that if you have more than two NSFs (Non-Sufficient Funds) each year, you will not be eligible for payment plans and you will have to pay your premium up front annually. This can really mess up your budget! Always pay on time and if you run into an unforeseen situation, communicate this to your broker.
- At-fault accidents. Adopt good driving behaviours. An at-fault claim can take six to nine years to come off your insurance record, and this will be reflected by higher insurance premiums. Speeding and impulsiveness are the leading causes of accidents.
Contact BrokerLink for new driver insurance in Alberta
If you’re ready to get insured, get in touch with a BrokerLink insurance broker- it’s easy:
FAQs about car insurance costs for a new driver in Alberta
How much does not having a full license in Alberta impact my car insurance rate?
Once you have your full license, it’s possible you’ll notice a decrease in your car insurance rate. However, your driving experience and insurance experience is a more important factor when determining your rate. As you gain more accident-free driving experience, you may notice your claim decrease.
Who sets auto insurance rates in Alberta?
Alberta has a private insurance market. That means insurance companies can determine rates. However, the provincial government closely regulates insurance companies to make sure the rates are fair.
Is car insurance required in Alberta?
Yes! Every car driving on the road must be insured. In fact, it’s a legal requirement in every Canadian province and territory. Car insurance is there to protect drivers, passengers and everyone on the road.
*The data provided by BrokerLink Inc. is based on rates paid by customers of specific Canadian insurance markets only. The content within this article is for informational purposes only; coverage advice should only be provided by a licensed insurance broker.