Student Car Insurance Quotes 2024 + Top Tips to Save
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Discover the methodologyGetting car insurance as a student can often come with a hefty price tag, but our comprehensive guide is here to help you navigate through it all.
We delve into the essentials of student car insurance, covering everything from various coverage options to the array of discounts you can tap into. Discover how to find affordable student car insurance easily with our insightful tips.
Use our free online tool to compare the best car insurance plans available today and get free quotes based on your unique needs.
Student Car Insurance Canada: 5 Key Takeaways
- Limited driving experience means higher premiums for student car insurance.
- Ontario's rates are highest, while New Brunswick offers cheaper options.
- New drivers from abroad may face higher costs due to unfamiliarity with local driving.
- Good grades and safe driving can lower student insurance costs.
- Compare insurers to find student discounts and flexible plans.
What is student car insurance?
Student car insurance is regular car insurance targeted toward young drivers, specifically college students.
It considers that this age group is statistically riskier to insure due to less driving experience, but it also offers discounts to recognize good grades and responsible behaviour.
Here are some key facts about student car insurance:
- Typically cheaper than regular insurance for young drivers: Because it can be offered as an add-on to a parent's policy, leveraging their driving history for a lower rate.
- Good student car insurance discount: Many insurers reward students with good grades with lower premiums.
- May include usage-based options: Pay-as-you-drive programs can be beneficial for students who don't drive much.
Overall, student car insurance aims to provide affordable coverage for young drivers while recognizing factors that can indicate a safer driving record.
If you're looking for student car insurance in Canada, use our tool to compare plans from leading providers in the country — and get the best deal.
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How does student car insurance work?
Student car insurance plans work in a couple of ways, depending on your situation:
Staying on your parent's policy
- This is usually the cheapest option. If you're a college student living away from home but still visit occasionally, you might be able to stay on your parent's existing car insurance policy as an additional driver.
- Your premium will likely be higher than theirs due to your age, but it will still be cheaper than getting your own policy.
- Some insurers offer "distant student" discounts specifically for students living away at school.
Getting your own policy
- If you need a car at school full-time or your parents won't add you to theirs, you'll need to get your own student car insurance policy.
- The premium will be based on factors like your age, driving record, car type and location.
- You can still qualify for student discounts like good grades and taking a defensive driving course.
Is student insurance mandatory in Canada?
Yes, car insurance is required by law for all drivers in Canada, regardless of age or student status. Students must get mandatory coverage. There are some optional coverage options too.
In Canada, mandatory car insurance coverage varies slightly by province or territory, but generally falls into these four categories:
- Third-party liability: This covers injuries and damage to others (people and property) you cause in an accident. This is the foundation of car insurance and has minimum limits set by each province/territory (typically $200,000 but some recommend higher limits).
- Accident benefits: It covers medical expenses, lost wages and other costs associated with injuries you or your passengers sustain in an accident, regardless of fault.
- Uninsured automobile coverage: This protects you if you're in an accident with a driver who has no insurance or a hit-and-run driver. It covers your injuries and car damage.
- Direct compensation-property damage (DCPD) (except Quebec): It covers repairs to your car if someone else is at fault for the accident.
When it comes to optional coverage, you can get:
- Collision coverage: This reimburses you for repairs to your car if it's damaged in a collision with another object or vehicle or if it rolls over. This is typically not mandatory but may be required if your car is leased or financed.
- Comprehensive coverage: It covers damage to your car caused by other events besides collision, such as theft, fire, vandalism, hail or animal strikes.
Good to know
Some provinces might have slightly different names for certain coverages — Accident Benefits might be called No-Fault Insurance.
How much does student car insurance cost?
Students face higher insurance costs compared to seasoned drivers. Insurance companies base their decisions on statistics, and unfortunately, statistics show that young drivers are involved in more accidents than experienced drivers.
This is due to a combination of factors like less time behind the wheel, potentially riskier behaviour and still developing road awareness.
Student car insurance in Ontario
Student car insurance in Ontario is typically more expensive due to the province's high population density, higher rates of insurance fraud, and costly legal and medical services related to accidents. Additional factors like age, driving experience, and vehicle type also influence premiums. Discounts and shopping around can help mitigate costs for students.
We collated car insurance quotes for some provinces to give you a better idea. Take a look here:
| Province | Average price of car insurance | Average student car insurance cost |
|---|---|---|
| Alberta | $1,316 | $3,120 |
| Ontario | $1,505 | $4,144 |
| Quebec | $717 | $2,114 |
| Newfoundland | $1,168 | $3,619 |
| New Brunswick | $867 | $1,867 |
| PEI | $816 | $1,846 |
| Nova Scotia | $891 | $2,237 |
As you can see, student car insurance in Ontario is the highest, followed by Newfoundland and Alberta. Use our comparator to get personalized quotes.
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Does international student car insurance cost more?
International student car insurance in Canada might cost more than regular car insurance for a few reasons:
- Limited driving history: Since international students are new to driving in Canada, they lack the local driving experience that insurance companies use to assess risk. This can lead to higher premiums compared to someone with a Canadian driving record.
- Unfamiliar with traffic laws: Canadian traffic laws might differ from your home country. Insurers might consider you a higher risk if they're unsure of your familiarity with the rules of the road.
That said, the cost difference may not be significant compared to regular car insurance for young drivers. Here's why:
- Young driver rates apply regardless: Regular car insurance for young drivers in Canada typically carries a higher premium due to their inexperience, regardless of international status.
- Potential for discounts: Some insurers might offer discounts for international students who have a valid driver's license from their home country and a clean driving record.
What are the best options for college student car insurance?
The best company will depend on your circumstances, such as your driving record, location, car type and the coverage you need.
Here are some companies that are generally known for offering competitive rates and good coverage for students:
- Belair Direct: Belair Direct offers student discounts and a telematics program called "Smart Driving" which can help you save money based on your driving habits. You can get a quote online and get up to a 10% discount.
- TD Insurance: TD Car Insurance offers student discounts and flexible payment plans. You can save 10% when you quote and buy car or tenant insurance online. TD also offers up to 25% off with the TD MyAdvantage app. But his features is only available for the residents of Ontario and Quebec.
- The Co-operators: The Co-operators Car Insurance offers student discounts and multiple car insurance options to choose from.
Here are some other options that you can consider:
- YouSet
- Economical Car Insurance
- Onlia Car Insurance
- Intact Insurance
- Aviva Canada
- CAA Insurance
Tips to get cheap student car insurance
Other than staying on your parent’s policy, here are some ways to score cheaper car insurance:
Qualify for student discounts:
- Maintain good grades: Many insurers offer good student discounts for B or higher averages.
- Take a defensive driving course: This proves you're serious about safe driving and can qualify for a discount.
- Look for other student-specific discounts: Some insurers offer discounts for good standing with student organizations or volunteer work (check with your provider).
How to qualify as a good student for car insurance discount?
To qualify for a good student discount, you typically need to have a GPA of 3.0 or higher (or equivalent, such as a B average). The exact discount varies by insurance company but can range from 10% to 25%. This discount can apply to the portion of your premium covering liability and other non-physical damage coverages.
Consider usage-based insurance (if applicable):
- Pay-per-kilometre programs can be cost-effective for students who drive less. Not all provinces/territories offer this option, so check availability.
Increase your deductible (carefully):
- Choosing a higher deductible lowers your premium, but be sure you can comfortably afford the upfront cost in case of an accident.
Choose an older, safer car:
- Insurers charge more for high-performance or expensive vehicles. Opt for a reliable, older car with good safety ratings to save on premiums.
Maintain a clean driving record:
- Avoid traffic violations and accidents. A clean driving record is the best way to keep your insurance costs down in the long run.
And don't settle for the first quote! Get quotes from multiple insurance companies to find the best rates and coverage options for your situation. Or you can use our free tool below to get the best car insurance quotes right here.
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