Your child has just passed his theory exam at the SAAQ and is asking you to take the wheel? Make sure you have the right car insurance for your new driver!

In this article, Assurances Multi-Risques shares tips to help ensure that your child—and your car—are well protected on the road!

The Learner’s Permit And The Probationary License

The process for obtaining a standard driver’s license involves two main steps:

The Learner’s Permit

This license is available to young people aged 16 and older who have passed their written exam. It allows them to drive only if they are accompanied by someone who has held a valid driver’s license for at least two years. Certain restrictions apply, such as a ban on driving between midnight and 5:00 a.m.

The Probationary License

Valid for 24 months, this is the final step before obtaining a regular driver’s license. It comes with specific restrictions:

Zero tolerance for alcohol consumption
Immediate revocation of the license if the driver accumulates 4 or more demerit points
Prohibition on teaching another person to drive

Additional restrictions may apply regarding the number of passengers aged 19 or younger between midnight and 5 a.m.

Adding A Young Driver To Your Auto Insurance Policy

If your child drives the family car—even if it’s only a few miles a month—you must add them to your auto insurance policy as an occasional driver.

It is essential to notify your insurer or broker immediately as soon as your child starts driving. Failing to do so could result in a denial of coverage if your child is at fault in an accident. So it’s better to be safe than sorry!

Impact On Your Insurance Premium

Adding a young driver to your auto insurance policy will result in an adjustment to your premium. The increase is generally lower for a learner’s permit. At this stage, your teen is always accompanied by an experienced driver, which reduces the risk of an accident.

When your teen obtains their probationary license and begins driving your car alone, insurance costs can rise significantly, since the risk of an accident is higher.

Getting insured as soon as they obtain their license—even as a secondary driver—allows your teen to start building their insurance history. Each year spent without an accident will then help them qualify for a lower premium.

Choosing The Right Insurance

Adding your child as an occasional driver to your car insurance plan is often more cost-effective. However, if your child has their own vehicle, they must have an auto insurance policy in their own name. You can guide them through the process and help them make the right choice.

As with any insurance, it’s important to shop around. Of course, a lower premium may mean less coverage… so be careful! Make sure to request quotes for the same types of coverage so you can properly compare prices from one insurer to another.

What Coverage Is Required For A New Driver’s License?

Civil Liability Insurance
In Quebec, all drivers are required to have liability insurance coverage of at least $50,000. However, it is advisable to opt for coverage of $2,000,000. This insurance covers property damage and bodily injury that may be caused to others in the event of an at-fault accident.

Property Damage To The Vehicle
Adding coverage for accidents with or without a collision and rollover is optional. However, it is crucial to carefully assess the type of coverage needed. The risk of an accident is higher for a young driver. It is therefore prudent to insure against property damage to your vehicle or your child’s vehicle.

Why Is It More Expensive?

The cost of insurance for a young driver will always be higher than for an experienced driver. This is because drivers between the ages of 16 and 24 are statistically more likely to be involved in accidents. Their lack of experience increases the likelihood of claims.

Before buying a vehicle, it’s a good idea to call your insurance broker to get an estimate of the potential premium. This allows you to know the costs in advance and guide your choice of car while staying within your budget.

The Main Factors That Affect Insurance Premiums For People Under 25:

Age and experience: The cost of insurance premiums for new drivers depends on their level of experience, regardless of their age.
Type of vehicle: Insurance for luxury or high-performance vehicles often costs more.
Vehicle value: A used car is more affordable to insure.
Driving record: No points on your license.
Frequency of use: Regular use, such as commuting to school or work, will affect the price.

Our Tips For Lowering A Young Driver’s Insurance Premium

There are several tips that can help new drivers lower the cost of their car insurance:

Used or lower-value vehicle
Opt for a used car with lower horsepower. Premiums are usually lower for compact cars or those with high safety ratings. Avoid sports cars or luxury vehicles, which often cost more to insure.

Build a good driving record from the start
Premiums often decrease when a driver drives safely. Avoid traffic tickets and at-fault accidents.

Telematics
Consider whether telematics could be a useful tool for you. This technology makes it possible to monitor the behavior of drivers using a device installed in the vehicle. Safe driving often qualifies you for a discount on your insurance premium. But be careful, the opposite is also true! Reckless behavior can lead to an increase in your car insurance premium.

Increase the deductible
A higher deductible results in a lower premium. Carefully consider your options and make sure you are comfortable with the amount you will have to pay in the event of a claim.

Shop around with a broker
Above all, it’s essential to compare quotes, as rates vary significantly from one insurer to another. An independent insurance broker can shop around for you to find the best price… and the right coverage!

Getting started behind the wheel

Getting your driver’s license is always an exciting moment! But to drive with peace of mind, car insurance should not be taken lightly. Make sure your child’s first driving experiences are simple, enjoyable, and fully covered.

For more information on car insurance for new drivers, contact our brokers.

Summary

If your child drives your car, they must be added as an occasional driver on your auto insurance policy.

Adding a young driver will certainly affect your auto insurance premium, since the risk of an accident is higher.

For a young driver, being added to their parents’ auto insurance policy is often more cost-effective.

If your child has his own car, he must take out his own car insurance. Choosing a used car and a compact model helps to reduce the premium amount.

There are significant price differences among insurers. An insurance broker can shop around for you and find the best coverage for your child.