auto insurance for teenager

[burt-oh-my!]

My teenage son is thinking of buying a car - him as sole driver, G2 license, no accidents, 17 years of age. Anyone have any ideas as to which insurance company gives best rates?

I want him to know the facts before he starts throwing too much money down the toilet.

 

[Geoff]

Good luck, and I'm not being sarcastic. We were discussing this last night with a buddy that has a daughter in the same situation. The costs are high no matter where you shop. The least expensive seems to be. Keep the car in your name and have the child as an occasional driver.

 

[sabu69]

The type of car will also dictate the 'rate' & yes as Geoff stated... the insurance companies have you over a barrel as statistically teens are a high risk

 

[bsi]

My teenage son is thinking of buying a car - him as sole driver, G2 license, no accidents, 17 years of age. Anyone have any ideas as to which insurance company gives best rates?

I want him to know the facts before he starts throwing too much money down the toilet.

I recommend sitting with him as he goes on line to check the rates at places like Geico or whatever. They are all going to be in a similar range that he is not going to like. I doubt he will be able to get anything in his own name for less than $5,000 unless he lies on the application.

Most teenagers (and many adults) focus on the price of the car (younger folks often buy sub-$2,000 beaters) or the price of gas (it is what it is) rather than the larger costs of insurance ($5,000/year) and the difference between an economical car getting 30 mpg (maybe $2,000/year gas) or a truck or suv getting 15 mpg ($4,000/year).

Adding up the 3 year cost of a car will be very enlightening. Purchase Cost + Insurance + Maintenance + Fuel + maybe parking is going to be close to $20,000 or more. I am not saying don't buy one, just the opposite! But go in knowing you are about to spend a serious amount of after tax dollars for this. Newbies think they are spending $1,500 for the car and $1.30 for gas and are have trouble making ends meet on a McSalary.

 

[The Bandit]

My nephew just picked up a 2005 Mazda 3 Sport (apparently a lower cost car to insure)...$4200 with no collision...$1500 more with collision.

 

[My Johnson]

Check TD bank insurance on line. My insurance broker said it was the cheapest.

 

[Hangman]

CAA also offers auto insurance with a little bit of discount if you get roadside coverage. Given that I probably needed CAA more between 16 and 25 than in the 10 years since, that may be prudent.

Also, see which companies have first accident forgiveness in case your son does get into one.

 

[fmahovalich]

At 17..he is likely the highest person of anyone to insure. A good starting number would be $5,000 per YEAR. So when pricing..Allstate, Cooperators etc etc....use that as a base line.

His parents can only have ONE CAR for each of themselves.... if they get a third, thinking the will OWN IT and put son on as 'Occasional'...Insurance companies will not buy it. They will ASSUME he is principal operator..and charge as ABOVE.

Did he consider the GiO 710 Electric Bicycle. No Licence, No Insurance, No Gas...Only $800-$1000...gets 60 Km per charge.....runs at 30 K/hr!!
A serious ALTERNATIVE!! AND ITS GREEN!!!

http://www.giobikes.com/Electric-Scooters-in-Canada/500w-E-Scooter/

 

[oldjones]

Three to four hundred a month saved on insurance will buy a TTC MetroPass that comes in the mail and still leave a coupla hundred for cabs. And of course he wasn't planning to actually put gas, oil or service into the car was he? More money for other people to chauffer you around. And no worries about drinking and driving for him or you.

If he's got that kinda money to piss away on stupid luxuries—like cars, you should be collecting room and board from him (and putting it into his RESP)

 

[supernatural]

My teenage son is thinking of buying a car - him as sole driver, G2 license, no accidents, 17 years of age. Anyone have any ideas as to which insurance company gives best rates?

I want him to know the facts before he starts throwing too much money down the toilet.

The other guy who suggested TD gave good advice, but I would also recommend Belair Direct as they specifically target the under 25 market... While they can't take credit into the rating, they do have sneaky ways of watching that so they may make him fill out an application and wait 30 days before quoting him... its kind of a stall tactic to piss of riskier people so they won't go with them.

The other thing I would suggest would be, if he hasn't already, take drivers ed. Basically what drivers ed does is that it immediately puts the new driver at a 3 start rating instead of starting out at zero and having to spend 3 years working his way up to that price catergory. Its been a while since I was in sales, but I don't think you can gain on your star rating if you're only a G2 driver, so it a double bonus... yeah it'll cost ya' like $600 bucks, but it will save him in the long run.

While maybe cost saving I'm remiss to say put him on your policy as that can have bigger implications should he ever get into an accident. Plus, he's going to be the riskiest driver (by the insurance companies standards) and with the other vehicle there just for him they are going to rate him as the primary driver on it anyway, so I don't think you'll see substantial savings unless you pesonally are getting some kind of group or loyalty discount.

 

[Petzel]

All auto insurance is high for teenage drivers since they are the most inexperienced and reckless. Also make sure you're comparing apples with apples. In other words when you get a quote/estimate online or over the phone, ensure you have the same options. i.e. replacement vehicle
I once got a a very competitive quote from Desjardin Insurance until I realized they didn't even have a replacement vehicle option, so if I had an accident and the car was being repaired, I'd have no coverage for a rental car for the time being. I ended up going with CAA as they had the best rate for all the options I wanted.

 

[simon482]

if you want i will set you up with my insurance company i use. they got my rate down from 350$ a month to 110$. no one in this thread knows what the fuck they are talking about. big companies will gouge the fuck out of you cuz they can, a smaller company will do better because they can. ignore the dumb shit in here.

 

[simon482]

i sent you a pm burt, hope it helps.

 

[supernatural]

if you want i will set you up with my insurance company i use. they got my rate down from 350$ a month to 110$. no one in this thread knows what the fuck they are talking about. big companies will gouge the fuck out of you cuz they can, a smaller company will do better because they can. ignore the dumb shit in here.

Having worked in the industry for a number of years I would beg to differ. In fact, if you're comparing you're rate to that of a 17 year old boy's rate, I would say that you are the one who doesn't know what you're talking about. Insurance rates pull in a large number of variables that in no way would be comparable between what I am assuming is a man who has driven for years, and those of a first first time g2 licensed driver.

I have no doubt that your guy found you a better rate because he took the time to look around, but it was probably that much more dramatic because you were either overpaying in the first place, or there may have been other factors involved.

 

[simon482]

Having worked in the industry for a number of years I would beg to differ. In fact, if you're comparing you're rate to that of a 17 year old boy's rate, I would say that you are the one who doesn't know what you're talking about. Insurance rates pull in a large number of variables that in no way would be comparable between what I am assuming is a man who has driven for years, and those of a first first time g2 licensed driver.

I have no doubt that your guy found you a better rate because he took the time to look around, but it was probably that much more dramatic because you were either overpaying in the first place, or there may have been other factors involved.

yeah when i was 17 i was paying 105$ a month, when i was 25 i was paying 350$ a month. way cheaper when i was younger. got it back to when i was a teenager fresh out of driving school.

 

[johnnyjohn17]

If he hasnt already, tell him to take a driving course, like Young Drivers of Canada,they can get you a discount on the insurance.

 

[Planner]

My teenage son is thinking of buying a car - him as sole driver, G2 license, no accidents, 17 years of age. Anyone have any ideas as to which insurance company gives best rates?

I want him to know the facts before he starts throwing too much money down the toilet.

open your ass up cuz here it comes...............they stick it to first time drivers

 

[shai]

Desjardins might work as well