Canada's Insurance Costs for Young Men Have Clearly Become Unaligned with Reality | Carscoops

      Young male drivers in Toronto are being driven off the road by insurance costs that exceed $13,000 annually.

      

      23 hours ago

      by Brad Anderson

      Female drivers pay less, but they still spend thousands more than older drivers. Insurance rates often decrease at 25, but this reduction is not always assured.

      Consumer Reports suggests opting for smaller, safer vehicles like the Honda Civic.

      If you're a young driver in Toronto, Canada, you may find car insurance premiums so excessively high that owning a car feels futile. Relying on public transportation or calling an Uber may be significantly more economical.

      Insurance companies have historically regarded young drivers as higher risk, and a recent report illuminates just how much this perspective is costing them.

      The Cost of Being Young

      The report from Rates.ca reveals that males under 25 are 73 percent more likely to incur serious traffic violations compared to older males.

      Younger female drivers generally have fewer violations than their male peers, yet they are still 53 percent more likely to receive serious tickets than women over 25.

      Additionally, the same study indicates that drivers beneath 25 – regardless of gender – are 66 percent more prone to receive speeding tickets than their older counterparts.

      Considering these statistics, insurance costs can be extraordinarily high for younger drivers. A 20-year-old male in Toronto driving a Honda Civic with no claims history could face insurance costs up to $13,418 annually. A female of the same age might pay as much as $9,607. Although this is less than her male counterpart, it remains a significant expense.

      What Can Drivers Do?

      Drivers can save substantial amounts if they have completed an MTO-approved beginner’s driver education course. For the 20-year-old male in Toronto, finishing such a course might reduce his insurance premium by up to $2,000.

      This program consists of 20 hours of theory, 10 hours of home study, and 10 hours of in-car instruction with a certified instructor.

      While many insurance carriers typically lower premiums when a driver reaches 25, this decrease isn't guaranteed. Moreover, with rates frequently rising each year, any savings resulting from reaching that age can easily be negated elsewhere.

      The type of car you choose also affects your premium. For younger drivers, Consumer Reports advises models such as the Honda Civic, Hyundai Tucson, and Toyota Corolla.

      “You should select a vehicle that isn’t too large, too small, or too fast,” stated Consumer Reports’ Keith Barry to CTV News. “Not only will this make insurance cheaper, but it will also help the young driver better understand their speed.”

      Road fatalities from 2011 to 2022.

      Sources: CTV News, Rates.