I have often been asked this question by people, “Should I enroll my child in a driver’s training school and how much would it save them on their car insurance?” We have received many e-mails from our newsletter subscribers asking this also, so I did a bit of comparing to put it into actual numbers.
I used a 17-year-old male driver who lives in Toronto as a profile to see what the difference in their premium would be with driver’s training and without driver’s training. I used an older vehicle (2003 Honda) figuring that a young driver would not be buying a brand new car. The coverage that I used was $1 million liability, $500 deductible on collision, and $500 deductible on comprehensive.
The lowest rate that I could find was $5,181 per year for this driver with driver’s training. Without driver’s training, the lowest rate that I could find was $6,870 per year.
The difference was $1,689 per year. The one time cost of a driver’s training school is on average about $600.
A lot of the insurance companies that I have worked for will credit a new driver for having driver’s training for three years.
The insurance savings over three years would total $5,067 for a $600 investment. This number is an approximation since other factors are taken into account over the three years (rate increases, changes in driving record, etc.), so it sure looks like the investment in driver’s training pays off financially.
Approved Driver’s Training
Keep in mind when choosing a driving school that not all driving schools are accepted by insurance companies.
Look for a school that has been approved by the Ministry of Transportation in your province. An approved school is a requirement that most insurance companies have in order to provide the reduced rate. These approved courses contain hours of in-class and in-car training.
You can find a list of approved schools on most provincial Ministry of Transportation websites. See below for quick links to your province’s list of approved driving schools or Ministry of Transportation website.
- British Columbia
- Nova Scotia
- New Brunswick
- Newfoundland & Labrador
- Prince Edward Island
- Northwest Territories
- Yukon Territories
Ask the Expert. Anne Marie Answers
At InsuranceHotline.com, we get tons of questions from our customers on a range of insurance issues. Follow our Ask the Expert series featuring resident insurance expert Anne Marie Thomas as she answers your most frequently asked insurance questions. Do you have a question about your policy, coverage, or anything else? Ask Anne Marie by using the hashtag #AskAnneMarie and posting your question to our Facebook or Twitter page. Or email us at email@example.com. Your question could be answered in our next #AskAnneMarie video.