Cheap Student Car Insurance Quotes
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Student car insurance
Student car insurance is a policy drivers get while enrolled in high school, college or university as full-time students. Most student drivers are also young drivers, though not always.
By ‘young,’ we mean drivers between 16 and 25. People who also likely have a beginner’s driver’s license (such as class G1 or G2 in Ontario). That said, some are fully licensed too, especially those who are closer to 25.
While the definition of student insurance varies from insurer to insurer, what separates it from insurance for young drivers is the that as a student, you may be entitled to discounts. You also, technically, don’t have to be young to qualify for some of these discounts.
Is car insurance mandatory for student drivers in Canada?
Yes. All drivers in Canada, whether they are students or not, are legally required to carry valid car insurance. In Ontario, the fine for not carrying car insurance ranges from $5,000 to $50,000, while in Alberta, the range is $2,500 to $10,000. There’s also the danger of your driver’s license getting suspended, and your car impounded. Worse yet, insurers may label you a ‘high-risk driver’ and charge a more expensive premium.
Different provinces have their own requirements for basic car insurance coverage, so be sure to familiarize yourself with them before purchasing your insurance.
When do student drivers have to get insured?
The moment you get behind the wheel – regardless of which driver’s license class you have. In Ontario, for example, G1 drivers can only be covered by someone else’s insurance (belonging to a parent or guardian), while G2 drivers can carry their own. In either case, you’re required to be insured. Similar rules apply in other provinces.
Is student car insurance more expensive or cheaper than average car insurance?
Whether your student car insurance is more expensive or cheaper than average car insurance will depend on your age, license class and other factors unique to you and your vehicle. For instance, young G2 drivers in Ontario can end up paying as much as $6,200 per year for their car insurance, while G drivers in the same age category may have to pay only half that amount.
According to our recent student car insurance data [anchor link to the table below], 18-year-old students in Toronto, who have a G class license, may get charged over $3,000 per year, while 40-year-old students may only get charged slightly over $1,000 per year.
The 2023 RATESDOTCA Insuramap data indicates that the average rate in Ontario is $1,744 per year, with the average annual rate in Toronto being $2,325. This means that if you’re young, you’ll probably have to pay higher-than-average premiums – regardless of whether you are a student or not. That said, you can utilize student discounts to make things a little easier for yourself.
If you’d like to learn more the data, check out our methodology for calculating these numbers.
Different types of car insurance discounts for students
One of the biggest advantages of being a student driver is that you can qualify for certain discounts, depending on your circumstances.
Here are some of them:
- Away from home discount: If the school you go to is over 100 kilometres away from your home, and the vehicle you drive attached to your parents or guardians’ primary home, then you may secure a discount that nearly halves your premiums. For this to work, you have to be included as an ‘occasional driver’ in your parent or guardian’s insurance policy as well as be a full-time student and below 25 years of age.
- Alumni discount: If you’re an alumnus of a specific university or college, you may be eligible for a discount thanks to your school’s partnership with its preferred insurer. For example, University of Toronto is partnered with TD Insurance. Another perk of going down this route is cheaper home, life and health insurance, which you can bundle under the same insurer, if you so choose.
- Good student discount: If your student average is above 80%, you can get a discount of up to 10%. You have to maintain the average to keep this discount.
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| Cheapest Rate | $2,640 |
| Average Rate | $3,586 |
| Savings: $946 (26%) | |
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| Cheapest Rate | $890 |
| Average Rate | $1,148 |
| Savings: $258 (22%) | |
Student car insurance rates
Being a student driver does not equal ‘young driver,’ and this is reflected in the kind of car insurance rates student drivers can expect. As you can see in the table below, an 18-year-old full-time student will, on average, have the same car insurance rate as someone who is not a student and is either employed or unemployed.
Being an older student driver yields the same price drop as being a regular older driver, as long as you have been driving regularly enough to build your driving record.
Young student drivers have higher rates, but they are also entitled to certain discounts, such as the ‘away from home discount.’
Overall, however, being a young student driver has few real advantages. That’s why we recommend checking out InsuranceHotline.com to secure the cheapest student rate available.
| Age | Student (full-time) | Employed (not a student) | Unemployed (not a student) |
|---|---|---|---|
| 18 | $3,920 | $3,920 | $3,920 |
| 19 | $3,643 | $3,643 | $3,643 |
| 20 | $2,732 | $2,732 | $2,732 |
| 21 | $2,143 | $2,143 | $2,143 |
| 22 | $2,094 | $2,094 | $2,094 |
| 23 | $1,974 | $1,974 | $1,974 |
| 24 | $1,926 | $1,926 | $1,926 |
| 25 | $1,779 | $1,779 | $1,779 |
| 26 | $1,721 | $1,721 | $1,721 |
| 27 | $1,716 | $1,716 | $1,716 |
| 28 | $1,625 | $1,625 | $1,625 |
| 29 | $1,634 | $1,634 | $1,634 |
| 30 | $1,642 | $1,642 | $1,642 |
| 40 | $1,051 | $1,051 | $1,051 |
Note: This data is based on a profile of a male driver in Toronto (postal code starting with M6G), who has a G class driver’s license, basic mandatory auto insurance coverage, a clean record and drives a 2023 Honda Civic DX, 10,000 km per year.
How to get cheap student car insurance
Looking to get cheap car insurance quotes as a student driver? Here’s what you should do:
Comparison shop
Use InsuranceHotline.com to compare auto insurance quotes from over 50 providers and secure the cheapest premium available in your area.
Avoid unnecessary coverage
Don’t include coverages in your auto insurance policy that you don’t need, so you can pay less.
Bundle multiple policies
By combining your car and home insurance policies under the same insurer, you can earn a discount of 5% to 15%.
Be safe
Drive as safely and carefully as possible to avoid traffic tickets and accidents. A poor driving record can lead to more expensive premiums (as well as compromise your safety).
Increase deductibles
Increase your deductible from $500 to $1,000 (or higher) to save between 5% and 10% on your auto insurance. Do note, however, that should you get into a car accident, a higher deductible will result in higher out-of-pocket fees.
Pay your bills on time
Paying your auto insurance bills late can lead to (as you might’ve predicted) late fees, which you can easily avoid by paying on time. Set up automated payments, if you find that you tend to forget to pay.
Stick to one insurer
Stay with the same insurer for multiple years, and you’ll be able to secure a loyalty discount from them.
Go to a driving school
Take government-certified driving lessons to become a better driver. This will not only keep you safe, but also lower your premiums.
Make your car less risky
Ensure that your vehicle is as safe and secure as possible. You can do this by changing your tires seasonally and adding various alarm systems to prevent collisions and theft.
Move to a different location (if you can)
Where you live and drive matters. If you live in an area with higher instances of car accidents and theft, then your premiums will probably be higher too. There’s little you can do about this, other than move to a new area.
Buy a less risky car
Cars with certain crash test scores, engine sizes, theft ratings and other factors will command higher premiums. If you’re curious, every car – of every year, make and model – has its own Canadian Loss Experience Automobile Rating (CLEAR), based on these factors. If you want cheaper auto insurance, check out these ratings and select your car accordingly.
Go for UBI insurance
Thanks to usage-based car insurance (UBI), you can get a cheaper premium. However, since it involves tracking your driving habits via a third-party device or a mobile app, how safely you drive will matter quite a bit. As you’d expect, the safer you drive, the lower the premiums, and vice versa.
Just drive
Drive regularly, and you’ll eventually build your driving record and gain driving experience. Experience is one of the most important factors when it comes to reducing premiums – in addition to a clean driving record. So, drive well and don’t stop.
