How much is car insurance for a new driver in Ontario?

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 level of 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 insurance and comprehensive insurance coverage.

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

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 for young drivers car insurance 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 your own personal auto insurance policy until you are older, most likely you will 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

Remember it doesn't matter if you are a younger or older first-time driver, either way you will be seen as inexperienced and therefore will pay a higher premium than your peers because of it. Unfortunately a younger first time driver may still pay more than an older first time driver due to perceived levels of maturity.

The key to getting cheaper insurance in the long run is maintain a clean driving record, while you accumulate more experience as an active driver. Even though you lack-experience, you can still make a smart financial decision. So, as you start off into the world as a new-driver, be sure to give yourself the best chance to find an affordable rate by comparing quotes from multiple insurance providers. 

ALSO READ

• How occasional driver insurance works
• When to drop collision insurance
• The lowdown on insurance deductibles