Do you have a young driver in your household? Do you have questions on how best to insure them?
We thought it would be helpful to share some information on how insurance for young drivers works.
Alberta Class 7 Learner’s Licence
This class of licence allows your young driver to operate a private passenger vehicle with someone over the age of eighteen (18) who has their full Class 5 driver’s licence. The person accompanying your young driver must sit in the front passenger seat while the vehicle is in operation.
There are several restrictions that apply to the Class 7 Learner’s Licence, including:
- no driving between the hours of 12:00AM – 5:00AM
- the driver must have a 0% alcohol level at all times while operating a vehicle
- the driver cannot drive with more people than there are seat belts in the vehicle
If you have a young driver with a Class 7 Learner’s Licence in your household, they are not required to be listed as an operator on your automobile insurance policy. They would be covered to drive your insured vehicle(s) as long as they are following the above Class 7 licence requirements.
Alberta Class 5 Driver’s Licence
Once your young driver has completed the necessary eligibility requirements and obtained their Class 5 Driver’s Licence, they should be listed as an operator under your automobile insurance policy (unless they have their own vehicle insured under their own name or they are listed as a driver on another policy).
- if there are less vehicles than there are operators, your young driver would be listed as an occasional driver on one of the insured vehicles.
- if there are the same number or more vehicles than there are operators, your young driver would be listed as a principal driver on one of the insured vehicles.
Driver’s Training
For young drivers who have not taken a certified Driver’s Training Course, they would be listed on your policy with a Driving Record of 0*, as they have no prior driving history.
For young drivers who have taken a certified Driver’s Training Course, they would be listed on your policy with a Driving Record of 3*, as the Driver’s Training Course basically gives them the equivalent of three (3) years of driving experience from the start.
The premium that would be charged would depend on how they are rated (per the above) and also based on what type of coverage the vehicle is insured for (ie liability only, collision, comprehensive, etc).
Another Common Question
One question that we are commonly asked is about the benefits of having a young driver insured under their own policy as opposed to being listed as an operator under their parent’s policy. There are a few things to keep in mind when determining which route might be the best for your family.
When listed under their parent’s policy (note: vehicle must be owned, registered and insured under the parent’s name(s)):
- benefit of a multi-vehicle discount if the vehicle carries physical damage coverage
- the premium would be included in the same payment plan as their parent’s policy
- any claims that occur would impact the parent’s policy and could remain on the policy in the event the young driver moves away and is not listed as a driver elsewhere
When listed under their own policy (note: vehicle must be owned, registered and insured under the young driver’s name):
- premium may be slightly higher due to no multi-vehicle discount
- depending on the young driver’s credit history, they may not qualify for a payment plan
- any claims that occur would impact their policy only
We hope that you have found this information helpful!
As always, please do not hesitate to contact our Team of knowledgeable insurance brokers if you have any questions or concerns regarding the above information or if you would like an automobile insurance quote for your young driver!
Thank you,
The Costen Insurance Team