It seems like a “rite of passage” from childhood into becoming an adult. Your little boy or girl gets their G2 and MUST have a car because everyone in school has one. Teens crave the freedom away from Mom and Dad, acceptance by their peers and the ability to show off (with the right vehicle of course!).
Teen Driving Statistics
Motor vehicle crashes are the leading cause of teen death in Canada. 500 people between 15 & 24 die and another 40,000 are injured annually across the nation in car accidents. Teens crash for many reasons, but the most common are overconfidence, speeding, impaired driving, distraction and inexperience. In addition, seat belt use among teens is among the lowest of any age group on the road.
In Canada, teens (16 to 19 years of age) represent 5% of drivers but make up 14% of of all fatalities and injuries. Recent statistics show that motor vechicle crashes are now the #1 killer of teens in Canada. Speed, distraction, fatigue, impaired driving and inexperience, coupled with a lack of seat belt use, are all prevalent factors in these fatal crashes.
Driver Education
In fact, because of the high death toll involved with teen driving, many provinces have already enacted Graduated Driver Licensing (GDL) laws.
Graduated Driver Licensing introduces teenage drivers to the road in stages, over an extended period of time and in an environment that minimizes risk. First is the Permit Phase (G1 license in Ontario) where the teen practices with supervision. Next is the Provisional or Probationary Phase (G2 license in Ontario) where the teen is allowed independent driving with restrictions. Only after successfully completing both phases will the teen be granted full (G license in Ontario) driving privileges. As your teen learns this new and important skill, practice is very important. As a parent or guardian of a new driver, spend as much time as possible helping and teaching your teen good driving habits.
Many provinces have restrictive laws that go along with having a G1 & G2 license, such as:
For G1 Drivers:
- Drive only when they have a “zero” blood alcohol level – without exception
- Drive only when there is another fully licensed driver in the vehicle who has a minimum of four years’ experience as such, sitting in the passenger seat
- This person must be the only passenger in the front. They must have a blood alcohol level below 0.05%, unless they are 21 years old or younger in which they too must have a zero blood alcohol level
- Ensure all passengers wear a functioning seatbelt, and that the number of passengers does not exceed the seatbelts available
- Not drive on any 400-series highway or high-speed expressway (like the QEW and the Gardiner Expressway)
- Not drive between the hours of midnight and 5:00 a.m.
For G2 Drivers:
- You must not drive if you have been drinking alcohol. Your blood-alcohol level must be zero. Each person in the vehicle must have a working seatbelt.
- In addition, the following restrictions apply between the hours of midnight and 5 a.m. to G2 drivers aged 19 years and under.
- In the first six months after receiving your G2, you are allowed to carry only one passenger aged 19 or under. After six months your G2 licence and until you obtain your full G licence or turn 20, you are allowed to carry up to three passengers aged 19 or under.
These laws may vary a bit by province but are now becoming extremely common.
Ontario Fraud Laws and Auto Insurance
Insurance statistics show that the youthful driver is significantly more likely to have an accident than a typical adult driver, so there will be a higher premium charged when the youthful driver is added to the parents policy.
There is a temptation then to “forget” to add the new driver to the auto policy or not list the new driver on your renewal questionnaire in order to save money even though the child is driving Mom or Dad’s car. We caution you against this practice. An insurance company is within their rights to deny any claim where it is found that there has been fraudulent misrepresentation.
Insurance-Friendly Cars For Teens
The decision is made. You want to buy your son or daughter their first car. It will be in your name and properly added to your policy. But what to buy? You know it’s not only the car model you have to consider. You also have to think about the impact the car will have on your auto insurance.
Insurance companies surcharge youthful operators in these areas:
- Liability
- Accident Benefits
- Comprehensive (theft)
- Collision (damage caused to the vehicle in an accident)
If you choose a vehicle that may be older, and does not require comprehensive or collision (a lower value vehicle) the premium will be considerably less than a newer one which will require full coverage.
Let us assist you in making a good choice for your teen. Contact Colley Insurance and one of our agents can help you make the right decision when buying that first car for your teenager.
The more your assets grow, the higher your liability risks are. No matter how well you’ve covered your bases, sometimes things go wrong. A car accident. A guest who slips and falls on your property. A lawsuit. If you don’t have the right coverage, an unfortunate situation can compromise your financial security and put your personal assets at risk.
An excess policy responds when the underlying liability limits of your other policies, such as home and auto, aren’t enough to cover the unexpected costs of a lawsuit or accident.
It is important to note that most Canadian insurance policies carry on average $1,000,000 of liability coverage. This limit can quickly become quickly exhausted and is very frequently limited to North America. The Group Personal Excess policy provided by Chubb Insurance provides up to $5M of worldwide coverage which extends to all dependent member of your house hold and also provides coverage for foreign owned assets.*
* Territorial restrictions apply: Sudan, North Korea, Iran, Cuba, Syria
Personal Liability (Homeowners) for bodily injury and property damage in the minimum amount of $1,000,000 per each occurrence.
Registered and unregistered vehicles in the minimum amount of $1,000,000/$1,000,000 bodily injury and $1,000,000 property damage; or $1,000,000 single limit per each occurrence. Registered vehicles include motorcycles and motorhomes.
Uninsured and underinsured motorist protection in the minimum amounts of $1,000,000 per each occurrence. This requirement does not apply to the provinces of Quebec or Manitoba.
Watercraft less than 8 metres (26feet) and 50 engine rated horsepower or less for bodily injury and property damage in the minimum amount of $100,000 per each occurrence.
Watercraft 8 metres (26 feet) or longer or more than 50 engine rate horsepower for bodily injury and property damage in the minimum amount of $500,000 per each occurrence.
*The above liability limits must be in USD if the asset is located in the United States.
Each participant is covered for a $5 million limit of liability, and there is no annual aggregate on the policy.
Your Chubb Group personal Excess Liability coverage provides worldwide automobile rental coverage (subject to a few territorial restrictions), for up to 60 days. You can rent a car while on vacation and have coverage for personal injury and property damage without buying the additional insurance.
Yes. At the time of writing this (November 1, 2017) you would not be covered in Iran, North Korea, Syria, Cuba and Sudan. Please check with us for any changes to these territorial restrictions.
What do I do if there is an accident?
Please contact Colley Insurance at 1-888-824-0445 as soon as possible, so we can help you through the claim process.
Need any help!
Office: 519-824-4040
Toll-Free: 888-824-0445
Fax: 519-763-6839
customerservice@tgcolley.com
1 - 34 Harvard Road Guelph,
ON N1G 4V8
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