Car insurance can be expensive, but it’s often more costly for new drivers in Ontario. Premiums vary based on various factors, including age and driving experience. Given this, younger drivers with limited experience behind the wheel can cause premiums to spike. The question is, how much can you expect to pay for car insurance as a new driver in Ontario?
Key Points
- Car insurance typically costs more for new drivers, mainly due to lack of driving experience and higher risk of collisions.
- In Ontario, average monthly insurance premiums can range from $430 to $610 for young drivers, depending on age and gender.
- You can reduce the cost of your insurance premiums by getting your license early, maintaining a clean driving record, looking for discounts, and adding yourself as a second driver to someone else’s policy.
Are Car Insurance Rates Higher For New Drivers in Ontario?
New drivers often pay higher premiums for the following reasons:
- Limited Driving Record: Those new to the road won’t have a track record that proves that they’re responsible on the road. To benefit from safe driving car insurance discounts, you’ll need to prove yourself as a safe driver by keeping a clean driving record.
- Higher Risk Of Accidents: Younger drivers tend to have higher accident rates, so insuring them is often more expensive.
What’s The Average Cost Of Car Insurance In Ontario For New Drivers?
According to Ratehub, a young (18 year old ) new male driver can expect to pay as high as $910 a month ($10,920 a year) for car insurance in Ontario. The average cost hovers at $611 for males and $429 for females. However, depending on your exact age and driving record, costs can range widely.
Average Cost Of Car Insurance In Ontario vs. Canada
| Annual Insurance Cost | |
| Ontario | $1,528 |
| British Columbia | $1,832 |
| Alberta | $1,316 |
| Saskatchewan | $1,235 |
| Manitoba | $1,140 |
| Quebec | $717 |
| New Brunswick | $867 |
| Nova Scotia | $891 |
| Newfoundland &Labrador | $1,168 |
| Prince Edward Island | $816 |
Keep in mind that these costs are the average across all age groups, not just young drivers.
The cost of insurance is based on the frequency of claims, the population, and multiple other factors. Quebec, the province with the most affordable insurance, offers a choice between public and private providers. Ontario, the province with one of the costliest insurance, has one of the highest crime rates, a major contributing factor. These are average rates across the province, so there is still room to save on insurance wherever you reside.
What Affects The Cost Of Car Insurance For New Drivers In Ontario?
Insurance agencies assess different factors based on the risk they carry. Among the many factors that influence insurance premiums are:
Age
Younger drivers, especially those under the age of 25, typically pay higher insurance premiums because of their perceived higher risk.
Gender
Male drivers are typically charged higher premiums because of their higher perceived risk, particularly in their teens and early 20s.
Learn more: Car Insurance Rates For Women
Location Of Residence
City centres like Toronto have higher insurance premiums because of increased traffic and higher accident rates. Conversely, less congested rural areas tend to have lower starting rates.
Driving Experience
This is the biggest issue faced by new drivers because, naturally, they don’t have a proven driving history. Because drivers with less experience are a higher risk, those who have not had insurance before always pay more for insurance.
Driving Record
You might have been driving for years, but if you made numerous insurance claims and have demerits on your file, then you are looking at much higher insurance costs. In fact, the biggest increases in the rates of car insurance occur when you have incurred motor vehicle violations.
Insurance companies look at your driving record to check your history of claims, including those you were at fault and when you weren’t. The more claims you make, the more risk you pose to your car insurance company.
Type Of Vehicle
Sports cars and high-performance vehicles tend to come with higher insurance premiums than sedans or compact cars. Insurers also look at data related to the vehicle’s frequency of theft, price of repairs, and how common accidents are.
Coverage
In Ontario (and the rest of Canada), it is mandatory to have active insurance in order to drive a vehicle. However, not all insurance plans are made alike. You can get a basic insurance policy that provides liability protection without getting all the bells and whistles on your insurance. More comprehensive insurance tends to cost more.
| Note: Ontario drivers can opt out of DCPD insurance to help reduce their car insurance costs. |
Factors Beyond Your Control
Though being a new driver is a big factor in the pricing of your insurance, there are some considerations taken by the insurance agency which are out of your hands. These include:
- Weather: You can’t control the weather in Ontario; and, especially with the snowy winters and extreme cold, it can mean paying more for insurance.
- Crime rates: If your area has undesirable crime statistics, then issues like vehicle theft and vandalism are more likely. To mitigate that financial risk, insurance will charge you more for a policy.
- Inflation: Another thing outside of your purview is inflation. Over time, money is worth less. One dollar simply doesn’t stretch as far as it used to, so insurance companies need to account for this by factoring in this extra cost.
Check out how you can save money on your car insurance.
How Do You Reduce Car Insurance Rates As A New Driver?
While you can expect higher premiums as a new driver, there are steps you can take to limit the expense, such as the following:
Add Yourself As A Second Driver
Ask your guardians whether you can get added to their policy, especially if you’re under the age of majority in your province. Instead of facing the hefty fees of being the primary on the insurance, you can gain driving experience, stay covered, and pay less. If you’re getting your license later in life, you may be able to get named as a second driver on your spouse’s account.
Look Out For Student Discounts
If you’re enrolled in a post-secondary institution, insurer-provided discounts may be available. Private insurance companies often offer these discounts. Similarly, your school may offer alumni discounts, so check if any of these apply to your situation.
Take Supplemental Training
Often, if you take a driving course through a recognized program, you become eligible for a car insurance discount. The idea is that you learn defensive driving strategies to keep you safe while on the road, thus reducing the risk you pose to the insurer.
Shop Around
You may find that insurance premiums range among different insurance providers. Consider comparison shopping with various insurance companies to see where the lowest rates are.
Get Your License As Soon As Possible
The best way to get savings sooner is to start early. By taking your driver’s test as soon as you become eligible, you will be able to prove yourself as a safe, low-risk driver sooner. This way, by the time you reach the age of 25, you will have access to the best insurance rates and discounts available.
Learn more: How To Buy Car Insurance
When Will Car Insurance Premiums Start To Decrease?
You’ll need some time and patience to eventually see your premiums dip. Generally speaking, you may expect to see your rates get cheaper after at least 3 years of maintaining a clean driving record.
Showing your insurer that you’ve gained some driving experience over the years without getting involved in any accidents or being charged with any traffic violations may result in lower premiums at some point.
Final Thoughts
The best way to reduce the cost of car insurance as a new driver in Ontario is to get your license as soon as possible and keep a spotless driving record. In the meantime, keep an eye out for discounts, try to get a lower-risk vehicle, and follow the rules of the road to the letter. It’s expected that new drivers will pay higher premiums, but by following the proper protocol, you can save sooner.
