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How much is insurance for a new driver in Ontario?

As a new driver in Ontario, you probably have a lot of questions regarding car insurance. Trying to understand the intricacies of it can be complicated, especially when you start to shuffle through an endless number of websites, all providing different information.

All you really want to know is: how much does insurance cost for new drivers?

As with most questions when it comes to insurance, there isn’t a simple one-size-fits-all answer to the question.

There are many factors that can affect car insurance rates. Some of the most common factors are:

  • The type of car you drive
  • Your age and level of driving experience
  • The neighbourhood you reside in – if you live in an area with a high number of car thefts, chances are your premiums will be higher

While the cost of car insurance can vary, there are a few constants that you need to be aware of when purchasing new driver insurance in Ontario. As a driver, it’s mandatory that you have the following vehicle insurance in place:

  • A minimum of $200,000 in Third-Party Liability Coverage: covers you in the event of someone being injured, or if their property is damaged.
  • Statutory Accident Benefits Coverage: Coverage for personal injuries following an accident, regardless of who is responsible.
  • Direct Compensation – Property Damage (DC-PD) Coverage: Covers damage to your vehicle or its contents, assuming certain criteria are met.

Graduated licensing and your car insurance rates

As a new driver in Ontario’s graduated licensing program, you’ll be paying higher premiums than you will for most of your driving career. 

However, when you complete your G1 license and progress to your G2, you can anticipate a rate reduction of 10% on your coverage, assuming you have a clean driving record. 

Similarly, when progressing from G2 to a G license, you will also see a rate reduction of 10%. 

Note: The rate reduction in both instances is only applicable for one year, so you’ll want to ensure you take your driving test as soon as you can to maintain affordable coverage.

So, what does insurance cost for a new driver in Ontario?

Ontario has the second-highest car insurance rates in Canada at about $125 per month, and as you’ll see, it’s essential to compare Ontario car insurance quotes to find your best price.

Keep in mind the cheapest car insurance policy is not necessarily the best bet for you, as it may lack the appropriate coverage.

When examining the cost of car insurance, as mentioned earlier, many factors come into play, including, but not limited to your age, gender, vehicle type, and whether you park in a driveway or on the street. 

We’ll look at the cost of insurance across a variety of ages for both males and females, but we will keep other details consistent. 

Envision the following scenario: You live in Ottawa, Ontario, and are financing a 2015 Toyota Corolla CE, 4-door you purchased in January of 2020.  Your daily commute is 10 km each way use about 10,000 km a year. 

You received your G license in 2020, after finishing a recognized driver training program, have a clean driving record, and are looking to purchase both collision and comprehensive car insurance.

Below are the monthly car insurance quotes for new drivers in Ontario

AGE + GENDERLOWHIGHAVG. 
18, Male$312.58$910.67$611.63
18, Female$264.42$593.92$429.17
30, Male$236.25$462.92$349.59
30, Female$239.25$513.92$376.59
35, Male$254.25$417.50$335.88
35, Female$265.50$460.58$363.04
40, Male$207.75$464.67$336.21
40, Female$207.58$517.17$362.38

While these numbers may be surprising, take into account they include comprehensive and collision insurance, and removing one or both forms of coverage can reduce the rate. 

Additionally, no discounts were applied to the quotes. For instance, if you are a member of CAA or other such clubs or organizations, you may be able to receive a reduction in premiums.

Notice the premiums you pay when you’re 18 are significantly higher than those you’ll pay when you’re older.  As a teenager, you’re considered higher-risk, and therefore more likely to be in an accident. Once you’ve proven yourself on the road, though, your rates will go down. 

In the above scenarios, we’re assuming you’re a recent graduate of Ontario’s licensing program. If you go through the program when you’re 16 and are getting auto insurance for the first time in your thirties, the premium you pay will most likely be cheaper because of your age. However, your lack of driving experience will keep your rates higher.

How to keep Ontario insurance premiums down for new drivers

The key to keeping your insurance premiums down is to be a safe driver with a clean record. If you follow the rules of the road and don’t get into any accidents, your insurance premiums should go down with time. Also, there are many things you can do to keep your new driver insurance costs down.

  • Be named as a second driver

If possible, being named as an occasional driver under your parents’ or guardians’ insurance policy can save you money. If you’re the main driver of a vehicle that you own, you can expect to pay insurance premiums that are much higher than average. 

  • Look for student discounts

If you’re a student, your insurer may provide a discount on your premiums. Similarly, if you’re a graduate from a University or College, you might be able to receive an alumni discount. 

  • Take a recognized driver-training program 

As a new driver, if you have completed a recognized driver-training program, you may be eligible for a discount on your car insurance premiums. When shopping around for the best new driver insurance, be sure to ask if the provider offers such a discount.

  • Get your license early, even if you aren’t going to drive

As examined above, if you get your license when you are 16, but don’t get driver insurance until you are older, you will most likely pay a reduced rate. This is on account of you having some experience behind on the road, and now being considered a more mature driver.

  • Remove any unnecessary coverage from your insurance policy

You may believe that the more coverage you have, the better off you’ll be. But that might not always be the case. Take a look at any coverage you have outside of the legally required coverage, and if you don’t believe you need it, have it taken off to reduce your costs.

  • Raise your deductible

A higher deductible means that you will pay less in insurance premiums.

The bottom line

As you start off into the world as a new-driver, be sure to compare rates among different insurer providers. Take the time to get a quote to help you find the most affordable car insurance. 

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