Get the best young driver's car insurance (under 25) in Canada

Young drivers (under age 25) pay higher-than-average car insurance premiums in Canada, largely because of their limited driving experience. Young drivers are also statistically more likely to get into an accident and make a claim. According to Transport Canada, young drivers accounted for about 15% of car accident deaths in 2023 and 18.5% of serious injuries. As a result, insurance companies set young driver rates high to offset this risk.

Generally, young drivers have two options to secure auto insurance. The first is to be listed on their parents' policy either as a primary or secondary (occasional) driver, and the second is to be a primary driver on their own policy. There are a few key differences between primary and secondary drivers, but becoming a primary driver means facing much higher premiums.

However, there are ways to find affordable car insurance for young drivers. The easiest way is to compare car insurance quotes from multiple providers to ensure you’re paying the best price available.

How much does car insurance cost for young drivers?

Young drivers can expect to pay hefty car insurance premiums, sometimes four to five times what an older, more experienced driver may be quoted. However, as drivers age and experience is earned, their premiums will usually decrease (assuming a relatively clean driving record is maintained). Typically, young male drivers face higher rates than females because they’re at greater risk of getting into an accident.

The tables below outline sample quotes for male and female drivers aged 18 to 24. In the example, an 18-year-old male will pay nearly $11,000 per year for car insurance, about $664 more than a female driver. Male drivers consistently face higher premiums until age 22, when females start paying higher rates. 

As the driver's age increases, the premiums decrease. For example, there’s a $4,715 difference between an 18-year-old and a 24-year-old male. Each year, the sample drivers see at least a 3% decrease in their premiums. 

Although a 24-year-old pays significantly less than an 18-year-old, prices are still high. Both male and female drivers are quoted about $6,000 per year for car insurance.

Insurance costs for male drivers

Insurance costs for female drivers

^{The quotes are based on a driver profile located in Toronto, Ontario, driving a 2020 Toyota Corolla with a clean driving history. A $1,000 comprehensive and collision insurance deductible is applied, with $1,000,000 in liability insurance. The driver opted in for a telematics driving discount.} 

Keep in mind that car insurance premiums are calculated using several factors beyond just age. The make and model of the vehicle, location and driving history all influence how much you’ll pay in premiums. Compare personalized car insurance quotes to see what you’d pay for insurance.

Does the cost of car insurance go down after age 25?

Yes, if you have a clean driving record, car insurance costs typically go down after age 25. This is because drivers 25 and up are generally viewed as less risky due to their greater driving experience and insurance history.

The tables below outline sample quotes for male and female drivers aged 24 to 30. In the example, drivers experience a steady decline in premium costs each year they age. A 30-year-old male driver will pay about $816 less per year than a 24-year-old driver, and a 30-year-old female driver will pay about $783 less per year than a 24-year-old driver.

Compared to an 18-year-old, a 30-year-old male driver will pay $5,531 less per year, and a 30-year-old female driver will pay $4,664 less per year.

Does using telematics make car insurance cheaper?

Yes, using telematics technology, also called usage-based insurance (UBI), can make your car insurance cheaper if you drive safely. Many insurers offer telematics-based programs via mobile apps to track your driving, like your speed, location and other behavioural data, which they use to determine whether you are entitled to a discount. Many programs will even give you an initial discount for signing up. However, it’s important to note that because telematics technology is based on your driving habits, if you do not drive safely, you may experience an increase in your rates. 

The table below outlines how opting in to telematics can decrease your car insurance premium. The driver profile experienced a $662 annual difference in their premium, or about 10.5% per year. For younger drivers, opting for usage-based insurance can make a significant difference in their already sky-high rates.

Does the vehicle impact the cost of car insurance for young drivers?

Yes, the make and model of the vehicle you drive impact what you pay for car insurance. The table below showcases sample quotes for five different car models. Driving a 2020 Mazda 3 is about $640 cheaper per year than driving a Volkswagen Jetta.