On the day you pass your G2 exam, you begin adding experience to your driving history. If young and living at home, this means you’ve graduated to a secondary driver. With your own vehicle, a G2 marks the day you need an independent policy to cover you from theft and damages.
Unfortunately, new drivers—especially those under the age of 25—pay hefty insurance premiums. Based on statistics, new drivers in this age group have proven themselves the riskiest. To offset the risk, insurance companies charge higher premiums. Thankfully, you become safer to insure over time, so long as you build insurance history.
Without insurance, even as a secondary driver, you:
- Cannot drive;
- Fail to demonstrate your driving habits.
Without experience, insurers cannot assess you and must resort to standard premiums. Therefore, by avoiding insurance when most at risk, you actually prolong its disadvantages. It’s better to start building history right away, despite the high costs.
One example of how history affects your premium is the no-claims bonus. Some policies stipulate that every five years without a claim, you premium drops. Thus, if you buy a policy at 18, you’ll be eligible for further discounts by the time you pass your 25 milestone.
Do You Need to Insure a G1 Learner’s Permit?
During your G1, you do not need an insurance policy. This is because your license requires supervision by a fully licensed and insured driver. That said, when you get your G1, ask your supervisor to call into his or her insurance company for advice. The broker can recommend when you need a policy of your own and at what cost.
How to Reduce Your Premium as a New Driver
If you complete a Ministry of Transportation approved training course, you can save on your premium. Students, too, can earn further discounts when living more than 100km from home. However, student discounts only apply as an occasional driver. Otherwise, you will need to take the following steps to obtain incentives:
- Refrain from modifying the vehicle;
- Choose an economic mid-size vehicle;
- Install security systems and/or alarms;
- Increase the vehicle’s safety with accessories like snow tires.
To elaborate on vehicle selection, many factors affect a premium. For instance, how often that type of car is stolen or involved in a collision. That said, young drivers should avoid buying cars with big engines. Likewise, coupes and convertibles might rev up the price.
Never lie on your policy to unlock better premiums as a young driver. Commonly, new drivers purchase vehicles under a relative’s name to qualify as a secondary driver. After a few years, they assume the role as primary, once the rates have fallen. While a sure way to save money, it’s dishonest and can void your insurance altogether. For more information on insurance integrity, please read our previous post.