Questions and Answers
Your Questions About New Driver Car Insurance Rates
How much will my car insurance be when I turn 23?
I hear your monthly car insurance payments go down significantly once you’re 23. I turn 23 in a few months and currently pay $65/month. How much can I expect it to be after I’m 23?
A lot depends upon several factors of which I’ve listed below. Also, different insurance companies might apply different “point values” to each of these factors to arrive at your premium payments. Only your insurance company can give you the best answer. In my early days, the cutoff was 25 years old.
Where you live vs where you work
Education level & grades
Type & age of car you drive
Safety features on the car you drive
Credit score & history
Gaps in insurance coverage
Lapses in insurance due to non-payment of premiums
Driver education classes
Add-ons to your coverage
Multiple policy (car + home)
Miles driven per year
Car alarm (comprehensive rates)
Where you park your car (street vs garage (coll/comp coverage)
Use of vehicle for business/work vs pleasure
The insurance company you choose
… And a few other minor factors
Can a person involved in an accident not go through insurance if requested?
I was involved in a 2-car accident. It was fully the other party’s fault. The other party wants to settle outside of insurance because insurance rates will go up because she is a young driver. I do not want to do this because of various reasons, and I don’t really want to go to court if we can’t agree on a dollar amount. Do I have a right to get the money from the other party’s insurance company (assuming their insurance adjuster will accept the estimates that I provide) or does the other party have the option to settle outside of private insurance, and if necessary go to small claims court to determine an amount to pay?
Yes to both questions.
Private settlements (no insurers involved) are totally legal and completely legitimate. But you have to watch your own aess, because people can pull funny business on you. And yes, you do have the option of refusing her private offer and insisting that all this goes through the insurance company process. And you often still have to watch your own aess, just not as closely.
Here’s what you do: Go get a repair estimate from a shop of your choice (not hers, not her dad’s, yours) and give her a copy. Also find out how long your machine will be in the shop, and get an estimate for a rental replacement for exactly that many days. And give her a copy of that too, because that’s what an insurer would pay for. Give the other owner 24 hours to come up with full payment in certified funds, and if she can’t pay it or insists that you go to the shop owned by her cousin you start the insurance process right away.
The only time you can get truly boned is if you sign a document saying you received ‘full and final settlement for all loss or damage’ on the accident date. Once you accept full and final settlement, it means the matter is now legally closed and you’ve been completely compensated.
Where can I get auto insurance at a reasonable rate in the GTA?
I am a teen driver and just got my G2 license, and I’d like to buy a car (I’m in school and I have a job) but would like to know if I could find reasonable insurance rates ($0 – $150 MAX) in and around the Greater Toronto Area. Please list companies or brokers. Thanks in advance.
Statefarm is your best bet, but be prepared to drop the wallet… I’m 17 and just bought a 1976 ford pickup in hopes that the rates would be cheaper because its old and not vintage but they only kicked off like 100 bucks. I’m still paying close too 300 dollars a month and that’s including my drivers ed discount… Overall I’d say Statefarm would be able to give you the best deal! Good luck!
Does Pass Plus reduce the insurance rate if the young driver with it is the second driver?
I’m 17 and want to get a second hand car but the insurance is too high. I plan to get the car, put it in my dad’s name and then drive it myself.
Will that reduce insurance premiums?
Insurance is only reduced on ‘pass plus’ if the insurance is in their name.
Also, beware of putting yourself down as a named driver on your dad’s insurance. It will definitely reduce the price considerably but if it’s really you driving it most of the time it’s called ‘fronting’ and there is no way an insurance company will pay a claim if they find out that’s what you’re doing. How do they find out? Well, if your dad already has a car in his name and then insures another with a different company also in his name it is highly likely they’ll discover it in the event of a claim.
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