Worst cars to insure for young drivers

11 minute read Published on Jun 2, 2025 by BrokerLink Communications

Nervous driver sits at wheel, has worried expression in a car by herself.

Do you have a newly licenced driver in your home? If so, you may be thinking about purchasing a car for them to drive. It’s a big decision that can feel overwhelming. But the key is focusing on what really matters (and what doesn’t) when it comes to your teen’s first car. Whether you’re eyeing a new or used car, there are definitely some vehicles that should be off the list for a brand-new driver. Let’s break it down.

The worst vehicles for young driver insurance rates

The worst cars to insure for young drivers are often luxury or sports cars with high horsepower or high performance, and older vehicles with limited safety features. Here's why:

High horsepower vehicles

Let’s face it—teens can be impulsive, take risks, and push boundaries, especially when they’re behind the wheel. That’s why cars with big V8 engines, tons of horsepower, and serious torque are a no-go for inexperienced drivers. Models like Corvettes, Camaros, Mustangs, or Challengers might look cool, but they’re way too much power for someone just starting out.

Instead, think about cars that focus on safety and control rather than speed. Look for reliable brakes, stable handling, and safety features like lane assist, collision warnings, or automatic emergency braking. These features help keep your teen safer and compensate for their lack of experience. A slower, steady car gives them a chance to focus on driving, build confidence, and avoid the temptation to push their limits. It’s all about helping them start off on the right foot—and the right car makes a big difference.

High-performance vehicles

High-performance vehicles might look sleek and exciting, but they’re not the right choice for a new driver. Teens are still learning the rules of the road, and pairing that inexperience with a car built for speed, sharp cornering, and quick acceleration can be a recipe for disaster. Sports cars or performance-oriented vehicles often amplify risky driving behaviours, which young drivers are already prone to.

Models designed for high performance, like Subaru WRXs, Dodge Chargers, or similar cars, are engineered for experienced drivers who can handle their advanced capabilities. For teens, these vehicles can lead to dangerous overconfidence and an increased likelihood of accidents.

Instead, choose a car that prioritizes safety, reliability, and steady performance. Features like traction control, electronic stability systems, and modern driver-assist technologies can help compensate for inexperience. A well-balanced, dependable vehicle allows your teen to focus on building safe driving habits without the added temptation of testing a car’s limits. Remember, it’s not about impressing others—it’s about keeping your teen safe.

Luxury cars

Luxury cars might seem like a great choice with their sleek designs, premium comfort, and cutting-edge technology, but they’re not the best fit for a young driver just starting out. Teens are still learning the basics of driving, and luxury cars often come packed with advanced features like touchscreens and infotainment systems that can be a major distraction. Instead of helping, all that tech can make things more complicated and take their focus off the road.

Navigating through menus, adjusting settings, or figuring out high-tech features while driving can lead to dangerous lapses in attention. Plus, let’s not forget the cost factor. Luxury cars are expensive to repair and maintain, which means higher car insurance premiums start out, and even a small fender bender can lead to a big headache.

Instead, stick to a car that’s practical, safe, and easy to drive. Reliable brakes, stable handling, and basic driver-assist systems are more than enough for a teen still mastering the fundamentals.

Older vehicles

When picking out a first car for your young driver, safety features should be your top priority. Teen drivers are still getting the hang of the road and learning how to handle unexpected situations, so having a car with modern safety features is crucial. Look for essentials like anti-lock brakes to help prevent skidding, electronic stability control to keep the car steady on slippery roads, and multiple airbags for added protection in case of an accident. These features can be lifesavers in an emergency.

If you’re thinking about an older car to save some money, tread carefully. While the upfront cost might seem appealing, older cars can come with hidden problems. Key components like brakes, tires, or the transmission might be close to wearing out, which could lead to costly repairs or breakdowns. Plus, older vehicles might have unresolved safety recalls or defects, putting your teen at unnecessary risk.

Convertibles

Driving a convertible might sound exciting—wind in your hair, the open road, and plenty of chatter with passengers. But for a young, inexperienced driver, it’s a recipe for distraction. Teens need to stay fully focused on the road to build safe driving habits, and adding distractions like wind, road noise, and passenger conversations can make it much harder.

On top of that, convertibles come with serious safety concerns. They offer little protection in a rollover, which can be especially dangerous. Without a solid roof, the risk of severe injuries goes up significantly. Plus, passengers in convertibles are more likely to be ejected during a crash, especially if seat belts aren’t worn—and let’s face it, teens don’t always buckle up as consistently as they should.

Since young drivers are already more likely to be involved in accidents, safety has to come first. Convertibles might look fun and flashy, but they just don’t provide the protection or focus a new driver needs while gaining experience on the road. It’s better to go for a safer, more practical option until your teen is more confident and capable behind the wheel.

Understanding car insurance for young drivers

There are some important things you should know about car insurance and young drivers before hitting the road:

How age affects insurance

The truth is that age plays a big role in determining car insurance rates in Canada. For most insurance companies, "young drivers" usually means anyone between the ages of 16 and 25. While insurance providers look at a variety of factors when determining car insurance rates, like your vehicle’s make and model, safety features, and repair costs, age is definitely one of the most significant.

Why? Insurance companies associate age with risk. If you’re a new or young driver, you likely have little to no driving experience, which increases your chances of being in an accident. In fact, young drivers are statistically more likely to be involved in collisions. That higher risk makes you a bigger liability in the eyes of insurers, which is why your rates tend to be much higher. However, it is important to remember that if you get your licence over the age of 25, you may still have to pay the rates of a new driver.

So, how much will a young driver's insurance cost?

If your child has their own car, they’ll need their own insurance policy, which can get pricey. Young drivers are seen as higher risk because of their age and limited experience, so their rates tend to be higher. One way to keep costs down is to choose a car that insurance companies see as "low risk"—something reliable, practical, and not overly powerful (definitely not the flashy or high-performance types we talked about earlier).

If your child doesn’t have their own car and will be driving yours instead, you can add them to your policy as an occasional or secondary driver. This is often a much more budget-friendly option, as they’ll share your coverage rather than needing their own policy.

What car insurance coverage do young drivers need?

Young drivers in Canada have access to the same range of car insurance coverage options as everyone else. Some types of coverage are mandatory, while others are optional. Don’t worry—we’ll break it all down for you below:

Third-party liability coverage

Third-party liability coverage is there to protect you if you accidentally hurt someone or damage their property while driving. It helps cover costs like medical bills, car repairs, and even legal fees or settlements, up to your coverage limit. In most provinces, it’s mandatory for drivers to have at least $200,000 in third-party liability coverage at all times, though in Nova Scotia, it's $500,000, and in Quebec, it's only $50,000.

Accident benefits coverage

If you, a passenger, or even a pedestrian need medical care after a collision, accident benefits coverage has you covered. The best part? It applies no matter who was at fault for the accident. This mandatory coverage can help with medical expenses that your health insurance might not fully cover, like prescription medications, physical therapy, or rehab. It can also step in to cover lost income if the accident keeps you from working.

Uninsured motorist coverage

Uninsured motorist coverage is there to protect you and your passengers if you’re in an accident caused by a driver who doesn’t have insurance or doesn’t have enough of it. It also has your back if you’re involved in a hit-and-run. It's mandatory in several Canadian provinces.

Direct compensation-property damage coverage

Direct compensation - property damage coverage takes care of your car and its contents if they’re damaged in a collision that wasn’t your fault. With this coverage, your insurance company typically handles the repairs or replacement directly, making the whole process a lot smoother for you. It's mandatory in some no-fault provinces.

Collision coverage

Collision coverage kicks in if you get into an accident with another car or an object, no matter who’s at fault. It helps cover the cost of repairing or replacing your vehicle if it’s damaged in a crash. While it's optional coverage, it can be essential for young drivers who are statistically more likely to be involved in a collision.

Comprehensive coverage

Comprehensive coverage is another great option for young drivers in Canada. It’s optional but can offer real peace of mind by protecting against all kinds of unexpected events other than collisions. With comprehensive coverage, you’re covered for things like theft, vandalism, fire, water damage, falling objects, and more.

Accident forgiveness coverage

One final type of optional car insurance coverage popular among Canadian drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim. Note: coverage varies by province

Tips for saving on car insurance for young drivers

Having your own car insurance policy as a young driver is going to be expensive—there's no way around that. In Canada, drivers under 25 usually face the highest rates. You should expect to spend hundreds, if not thousands, of dollars a year.

But the good news is, there are ways to cut those costs down. Partnering with a trusted brokerage like BrokerLink can be a great start—we’ll help you find the best coverage at the best price. On top of that, there are plenty of other ways to save on your car insurance policy, such as:

Shopping around for insurance quotes

While age is a big factor in determining car insurance rates for drivers under 25, it’s not the only one. Insurance companies look at lots of other details when calculating your rates, which means the quote you get from one company could be very different from another. That’s why it’s always a good idea to shop around—you might find a much better deal just by comparing options. And if you don't want to shop around yourself, reach out to a local insurance broker like BrokerLink to do the shopping for you!

Enrolling in driving school

Signing up for an approved driving school in Canada is a great way for young drivers to save on car insurance. Insurance companies know that drivers who complete formal training tend to be safer and more likely to follow the rules of the road. That’s why many offer discounts to new drivers who can show proof of completing a recognized driving program. It’s a win-win—you’ll become a better driver and save some money, too!

Using a telematics device

As a young driver, your lack of experience can work against you when it comes to insurance rates. But adding a telematics device to your car could help turn things around. Many insurance companies offer discounts just for installing one, and you can earn even more savings if the device shows you’re a safe and responsible driver. It’s a simple way to prove your good habits and potentially lower your premiums.

Bundling insurance policies

If you’re a young driver still living at home, this one might not apply just yet. But if you have your own place, bundling your car insurance with another policy, like home or tenant insurance, can save you a lot on both. Plus, if you ever have a claim that involves both your car and home, you’ll only have to worry about one deductible!

Choosing a vehicle that’s cheaper to insure

As we mentioned earlier, vehicles like luxury or sports cars are often more expensive to insure. If you're looking to save money on insurance, consider purchasing a vehicle that's cheaper to insure, like a sedan or station wagon with good safety features.

Maintain good grades

If you’re a student—whether in high school, college, or university—keeping your grades up could help lower your car insurance costs. Some insurance companies in Canada offer discounts for full-time students who achieve high marks.

Maintaining a clean driving record

This tip won’t save you money right away, but it’ll definitely pay off over time. Keeping a clean driving record—free of accidents and traffic tickets—shows your insurance company that you’re a safe, responsible driver. That could make you eligible for a safe driver discount down the road. On the flip side, accidents or multiple violations signal to your insurer that you’re a higher-risk driver, which can lead to higher premiums or even the loss of your coverage. So, drive safe—it’s worth it!

Learn more with BrokerLink

When buying a car for a young driver, it’s important to think about insurance costs. Picking a car that’s not super expensive to insure can make a big difference. Look for something with solid safety features and a good safety record—that can help lower premiums even more. With the right car and a little planning, young drivers can find affordable insurance and stay safe on the road.

And speaking of lowering premiums, BrokerLink can help you by finding you the best insurance rates around. We can shop around with top insurance companies to find you the cheapest car insurance for your insurance needs, and even help you find the cheapest vehicle insurance by comparing quotes for several different cars. Plus, we can help you avoid common mistakes when buying insurance and even answer questions like, "How does my university student affect my insurance?"

You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. So don’t wait, reach out to BrokerLink today! We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

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