Get Cheap Auto Insurance for New Drivers

Are you a new driver? Here’s how to get the auto insurance quotes in Ontario

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New driver car insurance

New driver car insurance

For new drivers, obtaining car insurance can not only be overwhelming but also an expensive process. Young drivers and inexperienced drivers are the most likely drivers to have an accident and make a claim. New drivers aren’t necessarily just young drivers, but maybe new immigrants, who come with years of driving experience from their country of origin but essentially have no driving experience in the country. As a ‘new driver’ in Ontario, things can get tough, just as it is settling into a new country!

New drivers are often considered high risk and face higher premiums as a result until they can prove otherwise by establishing a clean driving record free of tickets and accidents. Still, you have to start somewhere. Compare quotes to find the best rates available to new drivers today.

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Frequently Asked Questions About Getting Insurance As a New Driver

Can a new driver drive a vehicle without insurance in Ontario?

Good question. The short answer is no, you cannot legally drive a vehicle in Ontario without auto insurance. However, as long as you have a license (G1, G2 or G) you can drive an insured vehicle within the constraints of your license type. For example, a G1 driver must have a fully licensed G driver in the passenger seat at all times.

Typically, the car you are driving will be covered by the vehicle owner’s insurance. The vehicle owner is typically the primary driver, but not always. If you are a G1 license holder with a vehicle of your own, you cannot be the primary driver in the insurance policy and would need to enlist a fully licensed driver as the primary driver. Once the driver has graduated through the licensing system and is able to operate a vehicle independently, the primary can be switched to their name. Remember that any claims or convictions while on G1 will affect your insurance rates as you graduate to a G2 and beyond.

How much does insurance cost for a new driver in Ontario?

Ontario already has high car insurance rates compared to other provinces, and being a new driver, which puts you in the high-risk bracket, could mean that your initial annual premiums can be quite high.

Using the Rates.ca car insurance calculator, for a married male aged 38 in Toronto, who just recently got his driver’s license this year, and who drives a 2009 model Toyota Corolla, we were able to get quotes averaging $5,092* a year in premiums (assuming the driver is claims-free; $1 million liability; $1000 collision, and $500 comprehensive). For a female with the same conditions, the average is $4,993* annually.

When does a new driver’s car insurance go down?

If you are a newly licensed driver in Ontario, the Ministry of Transportation may not provide any credit for your driving experience from your country of origin, with some exceptions. Drivers from the USA and sometimes from the UK can exchange their licence and may not have to start at the G1 level. For drivers from other countries, this is because your driving record begins the day you get issued your Canadian driving license.

There are plenty of assumptions that a letter of experience or a claims-free record from your previous insurance company in your country will help lower insurance premiums, but it may not be true. Generally, insurance companies will not recognize any insurance or experience from anywhere outside of Canada and the USA.

One way to lower your insurance premiums is to gain driving experience in Ontario and establish a safe driving record by staying accident-free and claims-free. There are also other ways to save on insurance and lower your overall premiums. Bundling your home insurance with your car insurance under the same provider, for example, can save you up to 5% to 15%.

What is the minimum coverage required for a new driver in Ontario?

As per the Financial Services Regulatory Authority (FSRA), all drivers are required to purchase a minimum amount of coverage, including:

  • $200,000 minimum in third party liability coverage
  • Accident benefits coverage
  • Direct compensation
  • Uninsured automobile coverage.

This is the bare minimum for any driver and a standard Ontario auto insurance policy will include these things. Any additional coverages you want can be added to your policy.

Can a new driver drive a vehicle without insurance in Ontario?

Can a new driver drive a vehicle without insurance in Ontario?

Good question. The short answer is no, you cannot legally drive a vehicle in Ontario without auto insurance. However, as long as you have a license (G1, G2 or G) you can drive an insured vehicle within the constraints of your license type. For example, a G1 driver must have a fully licensed G driver in the passenger seat at all times.

Typically, the car you are driving will be covered by the vehicle owner’s insurance. The vehicle owner is typically the primary driver, but not always. If you are a G1 license holder with a vehicle of your own, you cannot be the primary driver in the insurance policy and would need to enlist a fully licensed driver as the primary driver. Once the driver has graduated through the licensing system and is able to operate a vehicle independently, the primary can be switched to their name. Remember that any claims or convictions while on G1 will affect your insurance rates as you graduate to a G2 and beyond.

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How can I lower car insurance rates as a new driver in Ontario?

The easiest way for new drivers to save on car insurance is to shop around. Every insurance company is different and has its own way of calculating risk. We aggregate rates from more than 30 of the top insurance providers in the country so that you can find the best available rates in one place.

You can also chat with your insurer on what discounts they offer, and this can help you secure lower insurance rates as well.

Here are some other ways you can lower your car insurance premiums in Ontario:

Install Winter Tires:

Winter driving in Ontario is risky. Even drivers who have driven around this snowy country for their whole lives still need winter tires to combat icy roads in hazardous conditions. If you come from a country without these conditions, that’s even more of a reason you should install winter tires and learn winter driving techniques. It also will save you 5% on your insurance premiums!

Join A Professional Association:

Being a member of a professional organization or affiliated with a university or college can help you save. Many universities or organizations can offer a group deal which can lead to discounts.

Bundle Under One:

Bundling more than one insurance products under the same insurance company can mean significant savings on your car insurance premiums. If your partner has a car, you could insure both vehicles under the same provider. You could also combine your car and home insurance. Most insurance companies provide great discounts from 5% to 15% when you bundle your insurance products with them.

Take an Accredited Driver Training Course:

New drivers to Canada are often encouraged to graduate from a ministry-approved driver training course. This not only ensures that you get driving experience and skills, and understand the rules of the road, but it helps qualify you for further discounts on your car insurance rates.

Choose the Right Vehicle:

Yes, the model, year, and make of the car affects your car insurance premiums. Slightly older cars may have lower insurance rates as they cost less to repair/replace than newer vehicles, but this depends on the vehicle itself.

Some vehicles are also more prone to theft. The Insurance Bureau of Canada issues a yearly list of the most-stolen cars in Canada, based on claims data. This list accesses and shows how each car measures up in the event of an accident, or theft. While you are on the lookout for a car, it’s worth taking a look at this list to know what you should be staying away from. Many companies provide free data about repair and replace costs that are worth consulting before you purchase a car.

Save with Newer Features:

Many of the cars that are being manufactured nowadays have greater safety features, such as emergency braking systems and theft control. Some cars are hybrid vehicles and have the ‘green’ vehicle tag on them. These features can help you save.

Install Telematics:

Some insurance companies offer devices or apps that allow you can share your driving data with your insurance company. These telematics devices monitor braking speed and a number of other driving variables. If you are a good driver, this can help you establish a trusted driving record with your company sooner.

Get the best car insurance rates for new drivers in Ontario

Get the best car insurance rates for new drivers in Ontario

As a new driver in Ontario, it is your responsibility to learn the rules and be safe on the roads. You also deserve to get the best rates. Even with all these tips, the easiest way to save on expensive car insurance is to shop around online. Compare quotes today and find the best rates available for new drivers today.

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