Car insurance rates for teenage drivers differ from experienced drivers. Your teenager has probably been waiting for their drivers’ license from the moment they turned 16. If you’re thinking about letting your teenager drive your car, or if you’re going to buy them their own car, you need to take the vehicle’s insurance into account.
Can I Drive My Parents’ Car Without Being On The Insurance?
Auto insurance is a contract between one or more drivers and an insurance company. The insurance policy will typically cover damage, theft, and medical bills. Auto insurance follows the vehicle, not the driver. This means that generally, you can drive your parents’ car without being on the insurance. However, since as a teenager, you are most likely living under your parents’ roof, you will need to be listed under your parents’ auto insurance policy. This is because if you get into a car accident, and are not listed on the policy, you won’t be covered. Also, many insurance companies will require the addition of a secondary driver if that person will be driving the car on a regular basis.
It is generally best practice to add a teenager to an insurance policy as soon as they receive their license. It’s best to contact your insurance company to find out what is the best course of action before driving your parents’ car.
The car must be insured. In Ontario, if you are driving without a license, you risk receiving fines, penalties and increased insurance rates. You will also be labelled a high-risk driver and your license may be suspended. Even though it is not a criminal offence in Canada, it is not worth the risk to drive without insurance.
How Much Is Car Insurance For A New Driver in Ontario?
Parents sometimes hesitate to add their teenagers to their auto insurance because new drivers are considered riskier drivers to insurance companies since they don’t have much experience. However, the higher insurance rates are worth it in the long run because you will save money in expenses if something were to happen to you or your vehicle. Insurance companies also take into account the driver’s record, whether the driver has received tickets, whether they’ve previously been in a crash, and the type of car being driven.
The average yearly cost for drivers in Ontario falls between $1,300 – $1,800. The insurance rates will defer, but a new driver in Ontario can expect to generally pay $3,200 – $7,200. This is the cost for a premium rate which is typically what is given to new drivers.
How Do You Add A Teenager To An Auto Insurance Policy?
If a parent shares the car with a teenager, the teenager will be a secondary driver. A secondary driver doesn’t drive the car as often as the primary driver. If a parent is adding a teenager to their insurance, it won’t cost as much, but it may make the insurance rate increase. Typically, adding a teenager to an auto insurance policy can increase the rate by 44%. If a parent is ready to add your teen to their policy, they will need to contact their insurance company and inform them.
If you’re looking to switch insurance companies, get quotes from various companies to see which one will offer you a price within your budget. Parents should speak to their teenagers to ensure they have an understanding of what an auto insurance policy is and what the repercussions will be if they end up in an accident. Safe and defensive driving is the best way to prevent insurance rates from rising.
Where To Get Auto Insurance for Teenage Drivers
AiA Insurance offers fair auto insurance rates. We make auto insurance plans tailored to your needs. Having auto insurance protects you and your family after an accident. Get in touch with us today for a quote.
