The average cost of car insurance in Ontario by age
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Jessica Ho
If you’ve been shopping for car insurance in Ontario, you may have wondered how insurance companies calculate your quote. One of the biggest factors that influence the price you’ll be paying is completely out of your control: your age.
Key takeaways on the average cost of Ontario car insurance by age
- Insurers see young drivers as a high-risk factor, so this group tends to face the highest car insurance rates. As you age, however, you'll likely see your rate go down (provided your driving record stays clean).
- G1 drivers can't be listed as a primary driver for insurance, so there's no need to worry about high costs yet. As a G2 driver, however, you'll need your own insurance policy if you have your own car. Alternatively, if you drive a household member's vehicle regularly, you'll need to be listed on their policy as an occasional driver.
- There is no set age at which car insurance quotes start to decrease as most insurance companies will offer a lower rate with every year you age – however, you can expect a more drastic decrease after you pass the age of 25, especially if you started driving at a young age.
- Aside from age, there are many other factors that impact the cost of your auto insurance in Ontario – this includes your gender, location, driving record, driving behaviour, license class, vehicle type, and vehicle storage.
- If you're looking for affordable coverage, make sure you're taking matters into your own hands – compare personalized car insurance quotes with us online today to uncover your best option.
How age affects your car insurance
Insurers see age as a risk factor because young drivers are generally less experienced and more likely to get into an accident that results in a claim. Therefore, you’ll notice your insurance premiums tend to decrease as you age, as long as your driving record stays clean.
On the other hand, once you reach your elderly years, the cost of your car insurance could start increasing again. This is because of the statistical risk factors that come with driving at an older age.
The average cost of car insurance in Ontario by age
So how much is car insurance in Ontario? The cost of car insurance is different for everyone, so it can be difficult to know whether or not you’re paying a good price within your circumstances. We can, however, look at the average rates for a hypothetical driver using Ratehub.ca's car insurance quotes calculator to compare how quotes increase or decrease between each age.
Methodology: Above are two tables outlining the average cost of car inurance in Toronto for both a male and female G-licensed policyholder, driving a 2024 Honda Civic EX. Assuming the drivers have a clean record, we are able to calculate average auto insurance premiums by age using our rate calculator – all ranges and averages are representative of the three lowest quotes offered. The insurance policies include $1,000,000 in coverage, along with a $1,000 deductible each for collision insurance and comprehensive insurance.
Keep in mind that this is only a representation of car insurance rates in Ontario car by age for one specific profile. You’ll also likely pay closer to the lower end of the monthly or annual range if you compare all your quotes and choose the company that offers the cheapest auto insurance rate.
How much is car insurance for a new driver in Ontario?
If you don’t have your G license yet, auto insurance will work differently for you. G1 drivers in Ontario can’t be listed as the primary driver for insurance, so you won’t need to worry about paying the expensive cost of an individual policy. You should, however, inform the insurer of the car you’re practicing on so everyone is on the same page. It could raise the premium, but it’s better to be safe than sorry.
As a G2 driver, you’ll need your own auto insurance policy if you have your own car. This can be quite expensive because you aren’t fully licensed yet, showing insurers you’re at high risk of making a claim.
For instance, according to our rate calculator, a 17-year-old female driver with a G2 license could pay between $809 and $1,349 each month to insure a 2024 Honda Civic. And if your driving record isn’t completely clean, it’ll be even more costly.
On the other hand, as a G2 driver without your own vehicle, you won’t need your own insurance policy. If you live with another licensed driver, however, and you’re planning on driving their car, you are required to be added to their insurance policy as an occasional driver. This will likely raise the premium, but not nearly as much as the cost of an individual policy for a new driver.
READ MORE: Young driver car insurance
At what age does the cost of car insurance go down?
There is no set age at which car insurance quotes start to decrease as most insurance companies will offer a lower rate with every year you age (until you reach your elderly years). You can, however, expect a more drastic decrease after you pass the age of 25, especially if you started driving at a young age. One recent study also found that some Ontario car insurance rates have a second significant drop around the 40s to early 50s age range.
Do car insurance rates ever increase in as Ontario driver's age?
Even though driving experience and age are important factors that can help reduce the cost of insurance over time, even the accumulation of experience won't save you from bad driver. Age or experience discounts won't offset the impact of tickets, accident claims or cancellations. So maintaining a clean driving record on top of gaining experience as you age is just as important to lowering your rates over time.
Another scenario to be aware of with age is when you start looking for senior car insurance. The elderly can see their rates start to increase as they age due to perceived risk factors with an aging driver.
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Other factors that impact your auto insurance quote
Aside from age, there are a few other factors that influence the cost of your insurance. Some factors (like age) will be completely out of your control, while others can be managed to a certain extent – these include the following.
Gender: Males tend to face higher quotes because they’re statistically more likely to make an insurance claim.
Driving record: A clean driving record shows insurers you’re less likely to get into an expensive accident, resulting in a lower insurance premium.
License class: G2 drivers face higher quotes because they’re less experienced in driving compared to a fully licensed driver.
Vehicle type: Generally speaking, the more expensive your vehicle, the more you’ll pay for insurance as your car will be more costly to repair or replace. However, some SUVs and Minivans can cost less than a sedan because they’re often associated with families. Moms and dads carry precious cargo and are typically safer drivers.
Location: Urban areas with high traffic volume or high crime rates will result in higher insurance costs compared to rural and suburban areas.
Storage: Storing your car in a private garage when you aren’t driving will lower your insurance cost, compared to parking it on the street.
Driving activity: The more you drive your car, the higher your insurance quote will be as the chances of getting into an accident increase with more mileage use.
Industry factors, such as an increase in stolen vehicles, an increase in insurance fraud, and an increase in claims cost can also result in a high premium, despite it being out of your control. That’s because insurers need to balance risk against their rates – and the more risk the insurance industry faces, the more you'll be paying for protection.
The biggest factor, however, will be the type of coverage you choose. For instance, increasing your coverage limit can increase your premium substantially, but it could be a worthwhile investment in the long run. You might also choose to add on comprehensive and collision coverage, and additional endorsements – such as accident forgiveness insurance – for the added protection.
For more details on the cost of your car insurance, visit our page: How car insurance rates are calculated.
How to get cheap car insurance by comparing quotes
Although you could be facing a few circumstances that increase your insurance, you should always compare your car insurance quotes to ensure you’re getting the best price possible. Different insurers will offer different rates – notice how a 50-year-old could be paying $114 or $568 for the same package of auto insurance in the table above? By comparing quotes, you’ll be able to find your cheapest option, despite factors such as young age driving up your premium.
For more cheap insurance tips, visit our page: How to save on car insurance.
The bottom line
Your age plays a huge role in the price you’ll be paying for car insurance. Typically, young drivers face more expensive premiums, and as you age, you’ll notice your premium decreasing. Elderly drivers, however, can also face a high cost of insurance because of the statistical risk factors that come with driving at an older age. Above all, age isn’t the only factor that determines how much you’ll be paying each month, so you can still find ways to lower your premium (such as comparing car insurance quotes with us).