Auto insurance is the last thing you would think of after having a child. However, with time, insurance becomes an inevitable part of your family. In some cases having kids can actually reduce your insurance rates. While in other cases, it can lead to an added expense.
So how exactly does car insurance for kids work? Can you actually save by including children in your auto Insurance? Let’s find out!
You can visit Surex for quotes from the top auto, home, condo, etc. insurance providers in Canada.
When do you need to add your kid to your car insurance policy?
In Canada, it is not mandatory to add your child to your car insurance policy until they have secured a driving license and are driving on their own.
If your child is still using a learner’s permit and is permitted to drive only with an adult, you don’t need to purchase a separate policy. Only when your child is aged below 23 years, successfully completes a graduated licensing program, and can drive without adult supervision can you add them to your insurance policy as an occasional driver.
Moreover, if your adult child resides with you and occasionally operates your car, you need to add them to your car insurance policy.
Discounts on car insurance for kids
When you get car insurance for your kids, you can enjoy substantial benefits in the following situations:
- Sharing a valid proof of driver’s education course completion
- Good academic scores and safe driving record during the learning period
- Registering in driving monitoring programs (including telematics devices that record safe driving)
When should kids get their own car insurance in Canada?
If your child has a car registered under their name, they’ll need to purchase a separate policy. It is mandatory in Canada for each registered vehicle owner to have their own auto insurance policy.
Factors affecting your kid’s insurance rates
Several factors can affect a kid’s car insurance policy:
- Age: Adult drivers below 23 and teenagers without driving experience typically pay more for auto insurance.
- Coverages: Adding special coverages to your existing policy enhances your financial protection. However, it also increases your premium.
- Deductibles: Policies having higher deductibles have reduced premium amounts than policies with low deductibles.
- Driving record: Drivers having a record of accidents or traffic violations incur higher premiums. In case your child comes under the high-risk category, the insurance premiums will be significantly higher.
- Location: Insurance agencies generally charge higher premiums if you reside in areas with considerable theft or crime rates or areas prone to adverse weather conditions.
- Type of vehicle: Luxury vehicles such as sports cars and convertibles will attract higher insurance premiums.
- Installation of safety and anti-theft devices: Many agencies offer specific discounts for vehicles with safety equipment installations, including anti-lock brakes and anti-theft devices.
How to save on car insurance for kids?
If your kids are old enough to get behind the wheel themselves, there are a few things you can do to save on car insurance for kids:
Compare car insurance rates
Different insurance agencies have different eligibility criteria for providing insurance policies to teenagers, children living in your home, and occasional young drivers. It is also a great practice to shop and compare interest rates during the renewal period to get your hands on the best pricing depending on the coverage.
Driving courses can significantly reduce premium rates
Encourage your kid to enroll and successfully complete a driver’s education course. Since young drivers lack any insurance or driving history, demonstrating a Ministry-approved training course can make your child eligible for attractive discounts or low insurance rates.
Discount for good grades
Some insurance providers have a special policy for providing discounts to students to secure good grades. Shortlist those providers and connect with them for the discussion. Mostly fees, insurance providers have a certain cutoff to provide the discount.
Include kids in your policy
While including a kid in your policy, your premiums might increase. However, that increase will be significantly low if you compare individual policies for teenagers and young drivers.
Bundling policies together
You might get discounts when you combine other insurance policies, such as home insurance, car coverage, etc., with your auto insurance policy. Therefore, bundling after insurance from the same provider can be a wise choice.
Motivate your child to maintain a clean driving record
Maintaining a clean and exceptional driving record is the best way to secure a low premium not just for young drivers but in the future as well. Encourage your children to sharpen their driving skills and maintain a clean record. With time, they should be able to enjoy affordable and cheap policies.
Frequently Asked Questions
Is it mandatory to add my kid to my car insurance policy?
Adding your kids or teen driver to your auto Insurance policy is not mandatory. However, covering your teen within your policy can cost much less when compared to purchasing an individual auto Insurance policy for them.
When adding your children to your policy, research ways to offset the rate increase by including good-student and defensive-driving-training discounts.
If my child is not included in my auto Insurance policy, are they still covered?
Generally, an auto Insurance policy gives coverage to a specific vehicle and not a person. If your child needs to drive your car occasionally, they will get coverage under your existing policy. However, ensure to discuss the same with your insurance agent.
If your child regularly drives your vehicle, it is recommended that you list them as a driver in your car insurance policy. Read the provincial rules and regulations for adding another driver to your policy.
To prevent any complications, it is advisable that you discuss all the terms and conditions of your policy with the insurance provider.
Car insurance for kids — Conclusion
Insurance policies are important when your child starts driving. It can save your family considerable financial expenses in case of accidents or mishaps. Children’s insurance policies can be significantly expensive. It is recommended that you connect with an insurance broker to find out the best deals and grab the most valuable policy.