Attention Newbie Drivers
New Drivers in Alberta and across Canada should keep these tips in mind to protect and build their insurance history.
- Typically, you are not allowed to have more than two NSFs (Non-sufficient Funds) each year. If you hit the maximum number of missed payments, you will no longer be eligible for the payment plan, and have to pay the rest of your premium in
- If you have several driving-related tickets (speeding as an example) your premiums will increase dramatically.
- Allowing your friend to drive your vehicle means you are lending them your insurance, too! If they get in an at-fault accident, your policy will respond – which mean your insurance will go up on renewal.
- At-fault accidents drastically increase your insurance premiums, and take 6 full years to come of your insurance record. You may also be required to pay your deductible out-of-pocket, which is typically $1000.
- If you have a car loan, you may be required to have full coverage on the vehicle for the entire duration of the loan. With a poor insurance record, this could raise your payments too high to afford the insurance your new vehicle. All the more reason to stay accident and conviction-free.
- Insurance history accumulates, which lowers your premium over time, so try and avoid lapses in coverage. Any gaps that are over a year could result in you starting over as a new driver with regards to your insurance history.
What is a Deductible?
A car insurance deductible is the amount of money you have to pay toward repairs before your insurance covers the rest. Deductibles affect your premiums, so it’s important to consult your broker to determine what limit is best for you.
Have Further questions?
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