New Year, New Set Of Drivers
The mark of a new year means an entire new group of young drivers are becoming eligible to get their licence and hit the open road. Teens may be anxious to drive their way to independence, but there are some important steps that should be taken prior. If you have a new driver added to the family this year, don’t worry! We are here to steer you in the right direction.
Should my teenage child get their own auto insurance policy?
It is with good reason that young drivers pay higher auto insurance premiums, as they have less experience behind the wheel and are considered higher risk. In Canada, teenage drivers only represent 13% of the licenced driving population but account for 20% of motor vehicle deaths and injuries. Rather than having your teen take out their own policy as a primary driver on their own vehicle, many parents opt to add their child as an occasional driver instead. This is a more cost-effective solution for your child but still allows them to drive the vehicle listed under their parents’ policy. It is important to add your child to your policy as soon as they are legally able to drive because it enables them to build up their own positive driving record. Each year they remain accident free earns them a lower insurance premium in the future.
How can my child impact my auto policy?
As the primary policy holder, know that you are fully responsible for the actions and record of any secondary or part time drivers. It is possible to see an increase in your premium as a result of a secondary driver’s mistake. Speeding tickets, minor accidents or distracted driving charges could impact your rates, so make sure to discuss the responsibility associated with becoming a secondary driver on a policy to your child.
The age and driving record of your child are also factored in for the change in your premium. Adding a young and inexperienced driver (ages 16-24) will likely cost you more than if you add an occasional driver that is 25+. However, it is important to note that experience is the main consideration when it comes to determining risk. Even if your child is over 25 but has no driving history, you will likely pay a higher premium. To reduce your and your child’s future premium, the province encourages all new drivers to complete a driving course that is approved by the Ontario Ministry of Transportation.
Safety tips to discuss with your child;
- Put Do Not Disturb on phone while driving
- Curfews to avoid late night driving
- Do not drive during inclement weather
- Never drink or take drugs if you plan to drive
- Limit passengers: In the first six months after receiving your G2 licence, you are allowed to carry only one passenger aged 19 or under. After six months with your G2 licence and until you obtain your full G licence or turn 20, you are allowed to carry up to three passengers aged 19 or under.
Your child getting their driver’s licence is an important milestone as they shift gears into adulthood. While we recommend all licenced drivers in the household need to be added to policy, it is important to understand the responsibility that comes with being the primary insurance holder. If you have any questions about how adding your child as an occasional driver changes your policy, please reach out to your Merit broker today!
