by High Insurance Rates for Young Drivers
If you are a young driver living in Toronto, Canada, you might find that car insurance premiums are so absurdly high that owning a vehicle starts to seem pointless. It is often much cheaper to rely on public transport or simply call an Uber when you need to get somewhere.
Insurance companies have long considered young drivers to be a higher risk, and a new report sheds light on how much it costs them.
The Price of Youth
A report published by Rates.ca shows that men under the age of 25 are 73 percent more likely to have serious traffic violations than older male drivers.
Although younger female drivers tend to have fewer violations than their male counterparts, they are still 53 percent more likely to have serious penalties compared to women over 25.
Additionally, the same study reports that drivers under the age of 25 – regardless of gender – are 66 percent more likely to receive speeding tickets than those older than this age category.
Insurance Costs for Young Drivers
Given these statistics, insurance premiums can be shockingly high for young drivers. For a 20-year-old man living in Toronto, owning a Honda Civic and having no claims history, insurance can cost up to $13,418 per year. A woman of the same age could pay up to $9,607. Although this is less than for a man, it is still a staggering amount.
What Can Drivers Do?
Drivers can save a lot of money if they have completed an MTO-approved beginner driver education course. In the case of a 20-year-old man in Toronto, completing such a course could lower the insurance premium by $2,000.
This program includes 20 hours of theory, 10 hours of home study, and 10 hours of practical in-car training with a licensed instructor.
The Impact of Age and Vehicle Type
Although many insurance companies lower rates when a driver turns 25, this reduction is not always guaranteed. And with rates often increasing year after year, any discount obtained by reaching this milestone can be easily offset elsewhere.
The type of car you drive also affects the premium. For young drivers, Consumer Reports have recommended models such as the Honda Civic, Hyundai Tucson, and Toyota Corolla.
You need to choose a car that is not too big, not too small, and not too fast. This will not only make insurance cheaper but will also give that teenage driver a better feel for speed.
Road Fatality Statistics
Data on road fatalities between 2011 and 2022 shows significant changes. The total number of deaths decreased by 18%, from 2,166 to 1,776. Fatalities among pedestrians and cyclists decreased by 17%, while incidents involving motorcyclists increased by 45%. Fatal accidents involving trucks decreased by 24%, and those related to alcohol decreased by 30%. Incidents related to non-use of seat belts and speed decreased by 16% and 18% respectively. The greatest improvement was observed among young drivers, where fatal accidents decreased by 52%, while among older drivers, the decrease was only 13%.
These figures may indicate that safety measures and education for young drivers are yielding positive results, despite high insurance rates. However, the question remains whether such high costs are justified, given the significant improvement in safety statistics among this age group. Perhaps insurance companies should reconsider their risk assessment approaches, taking into account modern trends and data.
