Insuring the Newly Licensed Driver
You don’t need to add your teen to your auto policy when they get their Beginner’s License. It’s when they get their Newly Licensed Driver’s License that you call us.
However, you can always call your Broker before they get licensed to ask questions and the conversation will be noted in your file. You will still have to call your Broker when it comes time to add the new driver to the policy.
Here is some information to get you started with your research.
Discounts for New Drivers
Let your teen know about Minor/Major/Serious Driving Convictions (see paragraph at the bottom of this blog) – infractions will not only impact their license status, but also their insurance premiums. By being aware of potential consequences, hopefully, this will motivate them to maintain a good, clean driving record. Insurance is really for accidents beyond your control; you should do whatever you can to prevent injury and damage to yourself and others benefits everyone.
- Driver Training discount: most Insurers will give a discount if you supply a valid certificate of completion of driver training.
- First Chance plans: you may be able to find an Insurer that treats newly licensed drivers as an experienced driver, up until their first infraction – and that could be as simple as a parking ticket; if you are able to get onto such a plan, make sure you know the consequences upon incident – it is a privilege to be on such a plan
- Multi-vehicle discount: most often, it is cheaper to be added as an occasional driver on a parent’s policy. Doing your research ahead of time – knowing what the best option is and backup option (there could be quite a difference in premium, so know both, just in case) – can help you prepare so that you are not scrambling for coverage costing you more headache and possibly more money, especially if you have to finance your insurance premiums.
NOTE: You have to disclose material information to your Insurer or coverage will be forfeited. If you are the principal driver and not the occasional driver, you must tell your Insurer this so they can charge adequate premium for the risk.
About Facility Association
This organization has been established by the auto insurance industry to provide insurance to vehicle owners or drivers who cannot obtain insurance through the “regular” markets.
- Inexperienced drivers
- Drivers with driving convictions
- Vehicles that pose a higher risk
Generally, Facility is for higher risk vehicles and drivers. The goal of Facility is to put themselves out of business – that is, to move a policyholder into the regular market as soon as possible.
For more information about Facility Association, click here.
Minor and Major Driving Offenses
When you apply for insurance or make changes to your auto policy, you may be asked about “convictions” – your Broker is asking whether you have any driving offenses.
Insurance companies need to rate risks accordingly – if you are a higher risk, you should be charged more premium. Lying is a no-no, and if discovered, will forfeit your coverage.
Insurers may differ with the laws as to what they consider to be major vs minor. Insurers will sometimes take a stand and charge you for certain convictions in an effort to discourage the public from certain behaviours that are known to be detrimental such as Texting while Driving (RSA’s PSA video).
- Example of a minor violation and consequences:
- Speeding less than 50kph over the posted limit. 2nd conviction premium surcharge is 10% and this surcharge % increases per additional conviction.
- Example of a major violation and consequences:
- Improper passing or speeding in a school zone, playground area or cross walks. One conviction = 15% surcharge. Plus 5% for each additional conviction.
- Example of a serious violation and consequences:
- Failing to stop at the scene of an accident. One conviction = 50% surcharge. Plus 100% for each additional conviction.
Take steps to clean up your driving record
We’re only human after all
Even when we aim to be good and follow the rules – well, even the laws evolve and sometimes we “miss the memo” or maybe you’ve just moved from a place where that behaviour was commonplace and accepted, but it’s not tolerated here. Ignorance of the law is not an excuse and therefore, you will have to pay the consequences.
All is not lost if you’ve committed these violations. You can clean up your driving record. Ask your Broker how long you will have to pay for these infractions and together you can work towards obtaining a better driving record, and therefore, a better insurance premium.
For fantastic, clean drivers, ask your Broker about endorsements that can protect your driving record such as Guaranteed Record / Responsible Driver Protector or Accident Protection/Forgiveness or Accident Waiver. Most insurers will agree to forgive the first accident (to not let that first accident raise your insurance premiums), but you have to add it onto your policy. Some insurers will add it per person while others will add it per vehicle. Clarify with your Broker so you know what exactly you are purchasing before an accident happens.
Good luck to all those who have obtained their Learner’s (Beginner’s) License and to the Newly Licensed Drivers.
You can contact us for an auto insurance quote or renewal review by completing this quick form.
Caution – where did you get your information?
Be careful with advice that you hear on the street or even find on the internet. The information might be wrong or it may be right, but only for the source’s province/territory/country of residence or from their particular insurance company. The information may also be outdated. If ever you are in doubt, contact your local Broker to confirm information, preferably before you have an issue or claim.