How to Tackle Difficulties in Obtaining Driver’s Insurance in Canada?

By June 17, 2017Blog

It is a known fact that the process of getting insurance for cars is extremely complicated in Canada, even for their own citizens with years of driving experience on the national roadways. So, you can imagine how difficult it would be to get Driver’s Insurance in Canada for new drivers, especially for International visitors and expats. You may have several years of driving experience elsewhere but if you do not have any in driving on Canada’s roads, it would be an enormous task to obtain insurance. Moreover, you would be considered as a first-time driver if you are a new resident of Canada even if you are an experienced driver.

It is important that you get an adequate insurance policy for your car so that you are always guarded whenever you decide to go behind the wheels. You would be considered a first-time driver in Canada if you are an inexperienced driver, a young driver or a new Canadian resident. You are a high-risk driver as considered by Canadian authority since you are unaware of the rules of the road or inexperienced on a Canadian road as a driver. A high-risk driver would always have to pay higher premium amount on their car’s insurance coverage.

However, there are ways to save on high premium amount and to know in detail about insurance cover for first-time car drivers.

Understanding the Requirements for Car Insurance

It is required on your part to take some time off and get to know about the laws pertaining to car insurance in your province since you need driver’s insurance (No CDN Experience) in Canada. This is because the law varies from one province to another. However, one rule that is applicable in all provinces is that the driver must have a certain amount of third-party liability coverage. This is done to protect your interest if you happen to cause any injury to another driver, pedestrian, passenger or cause any property damage while driving your vehicle.

Premiums for First-Time Canadian Drivers

You have to pay a high amount on premium towards your car’s insurance coverage for being a first-time driver even though you have not caused any accident or any violation of rules. This is done on the pretext that you are a risky driver. It is a way to help the insurers to earn more profits. Being a new driver they exploit you. They extract money from you by quoting that you are new and are prone to cause accidents and violate traffic rules, which would cost the insurers a great amount of money to settle the claim. Statistics have shown that most new drivers in Canada give 5.3% of their disposable income on car insurance.

How to Be Lucky?

Be lucky by bagging a Letter of Experience or a Driver Abstract, if you have driving experience in any other country. If you are already a license holder, it may help you get credit for your experience. Since the insurer can review your record, you may have the chance to enjoy low premium rate on the car’s insurance coverage.

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