Buying Car Insurance: A First-Time Driver’s Guide

Share This Post

Are you a Canadian teenager who is on the verge of getting your driver’s license? If you are, you’re probably getting excited and starting to shop around for your first car.

Buying a car is something that every first-time driver dreams about to some degree. But it shouldn’t be the only thing on your mind when you’re looking forward to finally getting your hands on your driver’s license.

You’ll also need to learn how to go about buying car insurance. Insuring your car will be of the utmost importance since it’s illegal to drive in Canada without having a valid auto insurance policy in place.

We’ve put together a guide that will help you obtain vehicle insurance. You should put it to good use as soon as you’re done buying your first car.

Here is what you need to know about buying car insurance as a first-time driver.

Begin by Deciding Which Vehicle You’ll Be Buying Car Insurance For

In order to go through the process of buying car insurance, you’re going to need to have a car to insure. So in the weeks leading up to you getting your driver’s license, you should try to find a vehicle that you like and buy it.

If you’re worried about how much auto insurance is going to cost you, you’ll probably want to shy away from buying a brand-new car. Insuring your car is going to cost you too much money when it’s right off the lot.

Instead, you should think about going with a used vehicle that has a lot of modern safety features. This is the kind of car that will be the cheapest to insure when it comes right down to it.

Look Into Obtaining Quotes for Auto Insurance

Once you’re able to secure your first car, you can officially begin the process of buying car insurance. You should cast a wide net when you’re in the market for vehicle insurance to ensure that you can get the best deal possible.

There are going to be dozens of different auto insurance companies that you can choose from when you need to purchase car insurance. You should try to use a website that will allow you to compare quotes from all of them so that you’re able to pay the lowest price for car insurance that you can.

Many years ago, people used to have to spend days calling around to different auto insurance companies to get quotes from them. But today, you can get quotes from a variety of car insurance companies within just minutes so that you can compare them.

Prepare to Pay a Pretty Penny for Vehicle Insurance as a First-Time Driver

One thing that you should keep in the back of your mind while you’re shopping for vehicle insurance as a first-time driver is that it’s typically going to cost you a lot of money. Most auto insurance companies see first-time drivers as risky, so they’ll charge them more than other drivers for vehicle insurance.

It’s better for you to know this going in than for you to find it out the hard way when you’re first comparing quotes for car insurance. It’ll take away some of the sting associated with the sticker shock that can come along with buying car insurance as a first-time driver.

Try to Find Ways to Save Money on Auto Insurance

Although you aren’t going to be able to get around paying a pretty penny for car insurance as a first-time driver, there are some things you can do to cut your total costs. Here are several steps you might want to consider taking to bring your car insurance prices down:

  • Attempt to bundle your car insurance with other types of insurance that you might have at this time
  • Take public transit if you commute to school or work every day and let your car insurance company know about you doing it
  • Agree to pay a higher out-of-pocket deductible in the event that you need to file a claim through your car insurance company
  • Install an anti-theft alarm system in your car and make it a point to use it early and often

When you do things like this, car insurance companies will see you as slightly less risky than other first-time drivers. So you should be able to get a better deal when buying car insurance.

Pick Out the Auto Insurance Policy That’ll Work Best for You

When you get to this point, you should have an auto insurance policy that is starting to stand out to you. You should reach out to the company that provided you with a quote for it and speak with them about signing up for a car insurance plan.

Most vehicle insurance companies are going to ask you some additional questions about both you and your car before extending a policy to you. They’ll also make sure that you’re happy with the different types of car insurance coverages that you’ll have.

If you have any questions about buying car insurance at all, you shouldn’t hesitate to ask the insurance company that you’re working with. If they aren’t able to provide you with satisfactory answers, it might be an indication that they aren’t going to be the best fit for you.

Aim to Drive Safely to Keep Your Car Insurance Premium as Low as Possible

No matter how hard you work to keep your car insurance costs down, your rates are still going to be on the higher end of the spectrum. Because of this, you won’t want to do anything that’s going to lead to your car insurance costs climbing even higher than they already are.

You’ll find that your car insurance premium will go up in a hurry if you’re ever involved in a car accident. You’ll also find that it’ll increase if you get tickets for things like distracted driving.

Your goal should be to avoid having your car insurance rates go up any higher than they already are. The only surefire way to do this will be by driving safely and steering clear of getting any tickets.

Get Into the Habit of Shopping Around for Auto Insurance Each Year

As you gain more experience as a first-time driver, you should start to see your car insurance rates decrease over time. Car insurance companies will see you as less of a risk and will respond accordingly.

But just because your car insurance company agrees to give you a better rate when it’s time to renew your policy doesn’t mean you should automatically stick with them. You should get into the habit of shopping around for auto insurance every year.

You might find that buying car insurance from a company other than the one you start off with could save you a lot of money. There could be other insurance companies out there that see you as less of a risk than your first insurance company.

It wouldn’t hurt to compare auto insurance quotes at least once each year. You might be missing out on some big savings if you pass up on the chance to do it.

Make Sure You Always Pay Your Auto Insurance Bill On Time

Generally speaking, you’re going to need to pay your car insurance premium each month or once every six months in most cases. Either way, it’ll be imperative that you pay your car insurance company on time.

If you’re someone who is constantly paying your car insurance premium late, your insurance company might increase your rate after your first year. Even though you’ll be a more experienced driver at that point, they’ll still charge you more than they normally would because of your payment history.

Make every effort to pay your auto insurance bill on time each month or every six months. You’ll be so glad that you did when it’s time to renew your policy or go shopping for a new one.

Utilize This First-Time Driver’s Guide to Buying Car Insurance

Buying car insurance is one of the least exciting parts of getting your driver’s license as a first-time driver. But it’s also one of the most important parts of doing it.

Use all the tips you’ve learned about in this first-time driver’s guide for buying car insurance. They’ll lead you down the right path and help you get your hands on a great auto insurance policy.

Do you need help scoring an auto loan for your first car? We can help you get it. Apply for one now through us to see how much money you could qualify to borrow.

spot_img
Related Posts

Buying A Car With A Credit Card In Canada

Buying a car is a good investment in the...

How To Apply For A Car Loan For A Newcomer Canada?

If you have moved to a new country for...

Is It Better To Lease Or Buy A Car?

Investing in a car is a major decision and...

What Is A Good Credit Score To Finance A Car In Canada?

What is a good credit score to finance a...

How Are Car Loan Rates Calculated In Canada – Factors to Consider

Borrowing a car loan? On comparing the various features...

Can Your Car Loan Land You In Debt Problems?

Taking out a loan to buy a car is...
- Advertisement -spot_img