Your driver’s licence is a ticket to freedom, but it comes with serious responsibility. Here’s what you should know about driving and insurance.
Getting behind the wheel
So you’ve got your learner’s permit and you know the rules: you can only drive if an experienced driver is in the car with you. There are also strict rules regarding alcohol, and there may be limits to when and where you can drive.
Guess what? It’s time to inform the insurance company. Yes, the owner of the car insurance policy should tell their broker that you’ll be driving the car, even though you only have a learner’s permit. The broker can let them know what to expect when you start driving solo.
Putting in the practice
You’ve got your licence and you’re finally allowed to drive alone. It’s definitely an achievement worth celebrating—but don’t forget you’ve got some responsibilities and restrictions.
In most provinces, you’ll be on probation for one or two years before you earn a full driver’s licence. During that time, there will be a limit to how many passengers you can drive around, and you won’t yet be allowed to act as the accompanying driver for anyone with a learner’s permit. Review the rules in your province or territory before turning on the ignition.
Now let’s talk insurance. If you’ll be driving someone else’s car, they should give their broker a call and add you to their policy. If you’ll be driving the car more than anyone else, you may be designated as the primary driver, which can have an impact on the insurance premium.
Insuring your own car
Thinking about buying your own car? Start thinking about buying your own insurance policy. You simply can’t have one without the other. Depending on your budget and the condition of your vehicle, there are several levels of protection you can choose from. There are two major kinds of insurance:
- Third-party liability insurance is mandatory and covers the cost of damage you might cause to others on the road. In Canada, if you don’t have liability insurance, you could be fined and even lose your driver’s licence.
- The other type of insurance is optional physical damage insurance, which includes collision insurance and comprehensive insurance.
- Collision insurance covers the cost of repairing damage to your car incurred in an accident.
- Comprehensive insurance covers the cost of repairing or replacing your vehicle for any other reason, such as theft, fire, flood or vandalism.
How much will your insurance cost, exactly? It’s a myth that the colour of your car will impact your premium, but many other factors will. The broker will want to know about you, how your vehicle is used, what kind of vehicle you have and how much protection you want to purchase.
Want to save on your car insurance? Contact your broker to review the details of your policy—it’s a good idea to understand what your insurance covers.
Sources: Intact Insurance