November 23, 2022
  • November 23, 2022

How can children affect your car insurance rate?

By on July 16, 2022 0

In some situations, you might find that having children helps you save on car insurance, and in others, it might cost you more.

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Just like being married, having children is one of those family status changes that has the potential to affect your car insurance rate. In some situations, you might find that having children helps you save on car insurance, and in others, it might cost you more.

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Here are some of the ways children can affect your auto insurance rate for better or worse.

More commuting could mean cheaper insurance

Especially in the first year after having a baby, new parents may drive less if they are on parental leave and no longer commuting to work. This means less exposure to risk, as well as fewer possibilities of collision. Insurance companies should therefore reduce your rate if you let them know that you are driving fewer miles per year.

During this time, most trips are short – to the doctor or to parent-baby playgroups – not long distances. If one parent stays home with their baby for a year or more, half of your household trips are eliminated.

However, when you return to work and your children grow up, you may find that you are driving After kilometers – to football training, school, dance competitions, etc. This could raise your rate. Be upfront with your insurance company so your policy accurately reflects the number of miles you drive each year.

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A a family-friendly vehicle could yield a lower car insurance rate

Many new parents can invest in a larger vehicle to meet the needs of a growing family. Larger, family-friendly vehicles, such as minivans and SUVs tend to sustain less damage if involved in a collision, which could net you a slightly lower insurance rate since repair costs may not be as high. Indeed, in 2021, three minivans were on the list of the cheapest cars to insure in Canada.

Buying a home can get you a bundled insurance discount

Once you have kids, you’ll probably want more living space. Generally speaking, once the kids come on the scene, those renting may be looking to buy a home. This could lead to a lower car insurance rate if you bundle your auto and home insurance with a single supplier. Package discount rates vary from insurer to insurer, ranging from 5-15%.

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This makes it all the more important to compare rates online when you combine your home and auto insurance.

Seat belt problems could cost you dearly

As the driver, you are responsible for wearing your seat belt and ensure that passengers under the age of 16 wear their seatbelts properly in your vehicle and are secured in an appropriate child car seat or booster seat. In Ontario, the penalty for not doing so includes ​​fines between $200 and $1,000 and two demerit points. If your toddler decides they don’t want to wear their seatbelt and you get pulled over by the police, that conviction will stay on your record for three years and will impact your rate at renewal.

In the event of a collision, if your child was not wearing their seat belt and this contributed to their injuries, the reimbursement of your insurance claim may be reduced. The amount of the reduction varies from province to province, but in the Atlantic provinces, it can reach 25%.

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Jyoung people (especially boys) will increase your rate

Unfortunately, having a teenage driver in the house and on your policy is almost certain to increase your insurance rate, especially if it’s a male. G1/learner license holders are new to driving, do not yet have an insurance history and are therefore considered a higher risk to insure. And because men are more likely to engage in risky driving behavior, insurance companies have long charged them higher rates.

The hit to your premium for listing your teen as a secondary or occasional driver on your policy may hurt in the short term, but it’s a great way for your child to build insurance history and get a rate. cheaper later in life.

HHow to save on insurance if you have kids

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If your kids are old enough to drive themselves, there are a few things you can do to save on insurance costs:

  • Compare auto insurance rates. Different companies offer different rates for secondary or occasional drivers, including children still living at home. It’s also a good idea to shop around for your rate on an annual basis before your policy renews to ensure you’re still getting the best price for your coverage.
  • Encourage your child to take a driver education Classes. Because your child doesn’t have an insurance history, showing they’ve successfully completed a ministry-approved training course can help keep your rate low.
  • Check to see if your provider offers a discount for good grades. Some insurance companies offer a discount to students who maintain their grades above a certain average.
  • Add your young driver to your policy. The premiums for young occasional drivers on a parent’s policy are plenty lower than premiums for young principal drivers with their own auto insurance policies.

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Finally, maintaining a clean driving record with no offenses or convictions is the best way to keep your insurance premium low. Encourage your young drivers to develop their driving skills as this will help lower their rate over the years. As they progress through the graduated licensing system, they should see a reduction on their insurance rate.

Having children can impact your auto insurance rate for better or worse. It’s a good idea to talk to your supplier if you have kids, especially when they’re ready to get behind the wheel. is a free, independent rate comparison website that allows Canadians to compare rates for various financial products, such as home and auto insurance, mortgages and credit cards.


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