Saving money is a top priority for almost every university, college or high school student. In Ontario, student car insurance prices are among the highest in the country. So, finding ways to save becomes even more important for students. Especially those attending schools in large cities like Toronto, where insurance rates are historically the most expensive.
But there’s good news. Whether you have your own insurance or you’re an occasional driver on your parents’ policy, there are ways for students to save money on car insurance. In this post, we’ll show you the top 3 money-saving tips for students in Ontario who want to lower their premium.
Take driver training
By now, most drivers are already aware that taking a certified driver training course, such as Young Drivers of Canada can get you a discount on your car insurance. However, what a lot of people don’t know is that this discount can last for as long as 3 full years after a driver completes the course. This can add up to huge savings for newly licensed drivers. In addition, taking an accredited driver training course will also allow you to fast track through the graduated licensing system, resulting in a better driving record and lower premiums with some insurance companies. Not to mention, a good training course will teach you valuable driving skills that will make you a much safer driver, and that’s definitely a good thing.
Be a good student
Getting good grades will help you get into your university of choice. Plus, your grades could get you an extra discount on your car insurance. As a general rule, students who do well in school tend to be safer and more responsible drivers than those with lower marks. For this reason, some insurance companies will reward good students with extra discounts. So, if you’re a full-time student in high school, college, or university, and you have an “A” average (80% or higher), you could receive up to a 15% discount on your car insurance with some companies. The best part is, the discount can stay on your policy until you are 25. As if you needed another reason to study hard and be a good student.
Stay away from home
Okay, this one is for parents too, but it still applies to students. When a student is an occasional driver on a policy, but will be living away at college or university, they may be eligible for the away at school discount. This will provide a savings of up to 50% off their portion of the car insurance premium. In addition, the student will still be insured to drive the vehicle when they come home to visit on breaks and holidays. However, they will only pay a fraction of the normal annual premium. Plus, by staying on the policy as a listed driver, this will allow the student to keep their continuous insurance history.
It’s important to note that every company has minimum requirements to qualify for this discount. However, if you’re registered as a full-time student, and are living away from home, then you’ll likely be entitled to receive an away at school discount. Check with your broker for your company’s specific requirements if you think you may qualify.
Bonus tip (for all drivers, not just students)
Okay, we can’t talk about saving money on car insurance without mentioning the most important tip; your history. When it comes to getting the lowest car insurance rates possible, history is the most important factor for all drivers. In fact, both your driving and insurance history can have a bigger impact on your premium than any discount or rebate. Drivers who have continuous insurance history, without any at-fault claims, payment issues or gaps in coverage, will benefit from lower rates now and in future years. Similarly, a clean driving history, without any tickets, or suspensions will always result in a better rate on your car insurance policy.
In all, maintaining a clean and consecutive history is the single most important thing that any driver can do to guarantee that they remain eligible for the best car insurance rates, and prevent their rates from increasing in the future.
When you’re on a tight student budget, finding ways to save money on everyday expenses becomes very important. After all, there are so many exciting and important things you’d rather spend your money on rather than car insurance. So, if you’re looking for ways to save a few bucks, there are a few things you can do. Take a driver training course, be a good student, and above all, maintain a good driving and insurance history.