Preparing for post-secondary studies is one of the best experiences for young adults. As a parent, preparing your child for their educational journey involves more than securing the right accommodation and course schedule.
To help you and your young adult, we have outlined four tips on how parents can help both themselves and their child save on car insurance.
4 Tips to save on car insurance for students
1. Look for Discounts
This might be a great time to consider speaking to an insurance broker, like NFP, for advice on finding the most suitable car insurance policy. Since your child will only be driving occasionally, they may qualify for an away at school or student discount. It is also worth exploring possible provincial discount offerings. New Brunswick and Ontario provide young drivers affordable insurance options like the First Chance Discount and the Graduated License Discount.
Also, certain insurance companies offer students discounts on their policies. For instance, Allstate has an insurance program specifically for college students. Insurance rates may also vary depending on the province. Ratelab offers a breakdown of the average cost of student insurance in Canada, as follows:
- Average car insurance cost for students around $4,228.
- Quebec student car insurance costs average around $2,135.
- New Brunswick student car insurance costs average around $1,664.
2. Consider Alternatives
While traditional car insurance is something you may feel more comfortable with, there are alternatives available, such as pay-as-you-drive, or UBI car insurance. This is a wonderful option for students who don't expect to drive around as much while living away from home. With less driving, you can see your premiums cut in half. With UBI, you can buy a small number of kilometers to use in one 12-month term. The minimum number of kilometers starts at 9,000 a year with an option to add more mileage as needed. Here's an article we published on various UBI options available.
3. Practice Safe Driving
Educate your child on safe driving habits. Ensuring they follow the rules and drive carefully will not only help you save on gas and car maintenance, but it will also ensure you avoid traffic tickets and financially draining collisions.
4. Reconsider Your Parking Situation
Did you know? Where you park your car has an impact on your insurance's policy rates. Most insurance companies call this your œgaraging address. In some cases, drivers with garaging addresses in large cities or a metropolitan area tend to pay more than those in rural areas. This is due to:
- Higher rates of theft and vandalism.
- Higher rates of auto repair and labour costs.
When it comes to garaging, it's important to avoid what is called œgaraging misrepresentation. Garaging misrepresentation is when a policyholder misinforms their insurance provider by providing an inaccurate address.
We recommend notifying your carrier as soon as you know where the car will be garaged.