Toronto’s young, new male driver could face $13,000 premiums

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Car insurance is expensive for new drivers in Ontario, but it's not just new drivers, but also male drivers who face a more expensive problem.

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A 20-year-old male driver from Toronto with no claims and no driver training could pay up to $13,418 a year to insure a new model Honda Civic, according to the agency. report from Rates.ca.

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Meanwhile, gender reassignment and a woman of the same age driving the same car with the same experience would cost $9,607 per year.

It doesn't take a mathematician to figure out that that's almost $4,000 ($3,811 with a calculator) less.

“The data shows that younger drivers or new drivers are more likely to have claims, and they're not the only ones more likely to have more expensive claims,” said Daniel Evans, an insurance expert at Rates.ca. KTV News.

Rates will also depend on other factors, including where you live in the province.

One of the few cases where younger is not better

Statistics show that younger drivers may engage in riskier behavior, making them more expensive to insure.

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The report found that drivers under the age of 25 were 66% more likely to have a speeding ticket, 53% more likely to have any type of ticket, and 17% more likely to be involved in an accident.

The best, and perhaps only, thing young drivers can do to lower these numbers is to gain experience while maintaining an accident-free and ticket-free record.

“Every year you can demonstrate that you are driving, that is an indicator to the insurance company that you are at much lower risk,” Evans recommended.

How to reduce the cost

Certified driver training programs can save the aforementioned 20-year-old nearly $2,000.

Yes, learning to drive is expensive, but it's one of those cases of short-term pain for long-term gain.

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“Many give a new driver three years of credit, so the courses are worth it,” Ivens told Driving.ca.

He also noted that spy apps that record how you drive – from speeding, sudden stops and fast starts – can bring big savings to good drivers.

“With some insurance companies, you can see a 30% reduction in renewal time,” he noted.

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The car you drive matters

According to the Insurance Institute for Highway Safety, crash rates among teens are nearly four times higher than among drivers 20 and older, so how young motorists drive matters.

“You'll want to choose a car that's not too big, not too small and (not) too fast,” Keith Barry of Consumer Reports told CTV.

“Not only will it be cheaper to insure, but it will also give the teenage driver a better idea of ​​their speed.”

Three used models in the $20,000 and under price range that received top marks are the Honda Civic, Toyota Corolla and Hyundai Tucson.

When it comes to insurance, shop around, Barry advised, as different companies have different policies.

“As we have discovered and have learned time and time again, loyalty does not pay,” he explained. “Shop around because insurance companies want to entice you with lower rates.”

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