Need help understanding absurd Car Insurance Quote

[samuelking]

Hi there,

I’m a 27 year old male living in Toronto. I just got my G2 this year (late to the game I know, but I first got my G1 almost 10 years ago and have been driving off and on since then).

I’m planning to move to Etobicoke in the coming months and was looking at purchasing a 10 year old Toyota Corolla. When speaking to my mother’s go-to car insurance company, they quoted me $700/month.

I’m trying to understand how they arrived at this absurd number. yes I’m a new driver but I am over 25, I do not drive as a commute work, would not be driving on highways very often and would be putting 5000km or less/year on the vehicle.

Is this quote consistent with any fellow new/ younger drivers who’ve also been looking to acquire their own personal vehicle? Would be open to any alternative companies as well to obtain quotes from.

 

[sovereignone]

@samuelking Your age is largely irrelevant. 25 is not a magic number. As you said, you got your G2 this year, that’s all most insurers are looking at, almost none of them would consider your time with a G1 because it’s not a valid license.

So: new driver - full stop - in Etobicoke… yeah, it’s gonna be high. Is everyone going to quote you $700? Hard to say, but we can’t tell you. You’ll need to shop around.

 

[samuelking]

@sovereignone That is a fair point. I understand how actual experience is a more valid number than age in this aspect.

Now for clarification, I’ve been asked this a few times and I want to make sure I’m expressing my info correctly:

I first got my G1 at 17 but it lapsed after I did not complete the graduated licensing process due to procrastination. When asked “age when first received G1 license” do I say 26 instead as that’s when I restarted the graduated licensing process?

 

[jsykes]

@samuelking Yes. You can say 17 and then explain what happened, but 26 is the number they’ll actually need. I didn’t get my license until I was in my 30s so I feel your pain. Doing driving school will credit you with 3 years of experience I believe, not sure if that varies by company.

 

[sovereignone]

@samuelking Are you sure they’re asking “age when first received G1 license”? Because again, the G1 is technically not a license, it’s a permit. And very few insurers count your time at that stage, and even if they do I would think they’d term it correctly and treat it differently than they would a G2 license.

 

[samuelking]

@sovereignone That’s what it says in the Bel Air website “age when first received license” and in bracket it says (G1, G2, G). Now if I’m following what you’re saying that probably means “Age when you received the license that you currently hold” etc ie as you suggested my G2

 

[jesseessej]

@samuelking When our kids got their G2s we switched to Belair Direct. They’re horrible to deal with but cheap.

 

[samuelking]

@jesseessej Initial quotes from them are showing $177/mo, thank you for the suggestion!

 

[jesseessej]

@samuelking My pleasure. You may regret it though. My suggestion is you shop around as soon as you get your G. And hopefully you never need them.

 

[mark264]

@samuelking Also to note there will likely be a "star" value. Fresh drivers are usually 0* and many Ontario Automobile Insurance providers will cap G2 drivers at 3*.
Be sure to graduate promptly.
Also important to note is if working with a broker be sure to see which insurers they have that they are not providing quotes for as some companies may have unseen limits and restrictions - even when regulators say that they shouldn't.

 

[qian]

@samuelking Not sure if you're still looking but drop me a DM. I'm an account manager, I'll be able to help you get set up.

 

[sandraovercomer]

@samuelking Sounds like the quote that I got from belaire insurance one time. Over $550/month. I laughed and hung up the phone. Get ahold of an insurance broker, they'll find you a better rate. I ended up finding insurance for less than $150 / month when all was said and done.