Want Cheap Auto Insurance As A College Student? Here's How To Get It

As a college student, auto insurance is one of the many things you'll need to budget for. And if you're under 25, you can expect to pay more than your older counterparts. Whether you're a college student or not, insurers view young drivers as a higher risk and thus charge higher premiums. While it's not exactly fair, that's how it is.

The good news is no auto insurance provider charges more for students than others—you can essentially go with anybody you like. But here's the thing: some companies offer "cheaper" car insurance for students than others. It could mean saving hundreds of dollars on your auto insurance premiums, depending on which company you choose.

You might be able to find these low-cost companies by conducting a quote search and checking out their websites or getting advice from friends and family members about which insurance companies offer cheap car insurance for students in your province.

For cheap auto insurance, you need to know these things:

Include Yourself in Your Parent's Insurance Policy

f you're a first-time driver, you likely have no driving experience. And if you don't have any driving experience, you can't exactly have an insurance history. Insurance companies consider you a higher risk and charge you higher premiums. So, if you're looking to save money on your car insurance, the best thing you can do is start building your driving and insurance records as soon as possible.

If possible, ask your parents to add you as a secondary driver to their auto insurance policy the moment you get your license. Even though this will likely increase your parents' insurance costs, it will still be much cheaper than getting your own. When you eventually leave home and get your policy, your driving history will help you save money. The cleaner your driving record, the better.

It's important to note, however, that secondary drivers can only drive the car occasionally. Having your own policy is essential if you're the primary driver.

On the other hand, it is a serious offence to lie to your insurance company. If you do this, your insurance claim may be denied, and insurance fraud charges could be filed against you.

Find Out if Your Insurance Company or Broker Offers Discounts

Students may sign up with the insurance company their parent's trust when seeking a policy of their own. It's still possible to qualify for discounts, so ask your broker about these options:

Multi-Car Policy Discount

During your college years, you can choose to bundle your insurance with your parents' policy, especially if you live at home with them. The company may offer discounts when a customer has more than one policy with an insurer.

Good Grade Discount

Your car insurance policy continues to benefit if you earn good grades after high school. A good student discount is available from most insurance companies for full-time, unmarried students under 25. Check with your agent if you qualify for a car insurance discount if you maintain good grades in your studies.

Alumni Discount

If you just graduated from a post-secondary institution, your alma mater may be able to offer you a preferential rate.

Telematics Program

With telematics, your insurer can monitor your driving habits via mobile application. You can get up to 20% discounts if you are a good driver.

Winter Tire Discount

Auto insurance companies in Ontario must offer drivers 5% discounts for installing winter tires. For other provinces, using winter tires is necessary. Ask your insurance company about discounts.

Driving Training Discount

Your auto insurer may offer you a lower rate if you successfully complete a driver education or training program.

Best Cheap Car Insurance Companies in Canada for College Students

Even though insurers consider young drivers a higher risk and thus charge more for coverage, there are still plenty of affordable car insurance options for college students. Check out the list below for some of the best companies to consider.

Desjardins Insurance

Desjardins (former State Farm) is one of the largest insurers in Canada, and they offer a wide range of insurance products, including auto insurance. They provide different coverage options and discounts for different types of drivers and lifestyles. For example, they have a program called Ajusto that gives drivers a personalized premium based on their driving habits and behaviours.

Allstate Insurance Canada

In terms of customer satisfaction, Allstate ranks above average. Allstate also offers a variety of discounts to help make car insurance more affordable, whether insuring more than one vehicle or bundling your home and car insurance or a first-time driver.

Travelers Canada

Travelers Canada has got you covered no matter what vehicle you drive. They offer car insurance for everything from your family truck or daily commuter to antiques and motor homes. And their coverage isn't limited to just a few provinces - they've got customers in Alberta, Ontario, Nova Scotia, New Brunswick, Nunavut, Prince Edward Island, Newfoundland and Labrador, The Northwest Territories, and the Yukon covered.

How much is auto insurance for a college student?

It's a question that has been debated since the first car was driven by a student: how much should their insurance premiums be? Unfortunately, no one answer fits all students. A few factors are always considered, such as age and driving record. However, there may also be additional circumstances that can impact the cost of premiums.

Anyone who's ever shopped for car insurance knows that rates vary depending on your province. For example, the average cost of car insurance for students in Quebec is around $2,135, while the same coverage in New Brunswick will set you back an average of $1,664.

Why do students have to pay so much for car insurance?

Running a car can be costly, whether you're a college student or a 30-year-old driver. Here are some reasons why auto insurance is so expensive:

Insurance companies know that young drivers have more accidents, so premiums will likely reflect that risk in the first few years of driving.

The lack of no-claims discount as a young driver means you will not have had time to accumulate one. If you do so, you may be able to lower your car insurance premiums.

Your insurance premiums may also vary depending on where you live—living in a big city or town, parking your car overnight on the street, or living in an area where car crime is high increases the risk of your vehicle being damaged or stolen, which increases your insurance premium.

Are auto insurance rates cheap for international students?

If you're an international student without any driving record or insurance in Canada, you are still regarded as a new driver even if you have driving experience in your country.

You need to get a car insurance policy once you get your Canadian license and start driving your own vehicle. When you have an insurance history from the United States or another country similar to Canada, provide proof to your potential insurance provider or broker. You can also get a cheaper premium in this way.

If you drive a friend or relative's car, they will have to add you as a secondary driver. Finding cheap auto insurance may not be easy. Thus, you must shop and compare rates to get the best prices and adequate coverage based on your needs.

How to get cheap auto insurance for Canadian college students?

The best thing a college student can do to save money on their insurance premiums is to search for cheap auto insurance. There are sites out there that offer discounts from many other companies.

Visiting each and researching to see which ones provide the best rates is well worth the time. Students can also reduce their insurance costs by keeping clean driving records.

If they already have some infractions on their record, it would be best if they could keep them off it completely. They may also be able to lower their premiums by taking a driver safety course or a defensive driving course.

Have we answered your questions?

Ah, the sweet relief of finally being able to buy your own car insurance policy. No more relying on your parents to help you—you're a college student, ready to take on the world (or the open road).

For college students, cheap auto insurance isn't always easy to find in Canada. When finding a better deal on car insurance, know that you are not alone and have many options. We wish you good luck!