That depends. Car insurance may cost you more in rural Saskatchewan as compared to rural Toronto. However auto insurance still varies for new drivers. There are a variety of factors that affect how insurance companies charge new drivers in Canada. Most insurance companies will charge a new driver according to a premium that is based on a base rate.  However, the base rate is subject to change when factors such as the driver’s location of residence, age, gender, driving history and claims history comes into play. Let’s examine some of them –

Your Gender

Insurance companies charge young male drivers (under the age of 25) more as compared to their female counterparts. No, your insurance company does not harbour any gender bias. In other words, it is not you, it’s the statistics. And statistics clearly show that young male drivers are more likely to drive carelessly and get into accidents than young female drivers who take fewer risks on the road. In general, young drivers in their twenties can expect to pay $3,000 for a full coverage policy.

Your Age

The auto industry depends on younger drivers to keep itself going strong. Young roadsters refers to drivers who are younger than 25. Unfortunately, as mentioned, this also means that your auto insurance will cost you more. Insurance companies charge young drivers more as compared to their older counterparts and it is easy to see why. A young bachelor in his prime is more likely to floor it on the highway and get into accidents as compared to older drivers who have families to support. If you happen to fall under this category, your insurance company will consider you a higher risk and will be legally obligated to classify you as such.

The Type of Vehicle you Own

The amount that you are charged for your auto insurance will also depend on the type of car you drive. For instance, a revved up BMW denotes a higher risk which is why an insurance company will charge its owner a high rate for auto insurance. However, if your car is a slower model like a Volvo, you can expect to pay less to insure it.

Faster vehicles might look amazing, but they are also a road hazard waiting to happen. Of course, a vehicle does not have to be revved up in order for it to be considered risky by insurance companies. High end vehicles are more likely to be stolen, which is why insurance companies charge more to cover them as well.

Driving Record

Your insurance company will obviously charge you more for auto insurance if you have a slew of traffic violations under your belt. Similarly, they will be more amiable towards new drivers who have a squeaky clean track record on the road. The best part is that, you can control this factor when it comes to premium pricing. All you have to do is follow the rules of the road before you apply for auto insurance in the country.