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Updated
Accidents can happen when you’re learning to drive. As a G2 driver you have several months to a year (at least) of driving experience. But this is only the beginning of building your driving history. Because many G2 drivers are under the age of 25 with short driving histories, they are considered higher risk. This means insurance companies view these drivers as more likely to file claims on than average.
However, getting to your full G license is a staggered process. While the G1, the first stage allows you to drive with a fully licensed driver who has at least four years' experience, it does not require insurance in Ontario.
A G2, the next stage, allows you to drive independently for up to a year, prior to obtaining your full G license. This stage requires insurance and is mandatory in Ontario.
As mentioned, most G2 drivers are young and inexperienced. As a result, G2 driver insurance will be higher than other experienced drivers. A G2 driver's insurance rates will normally be 25% to 50% higher than a G driver.
Because G2 drivers are considered independent drivers, they can obtain insurance policies. However, it may be much cheaper to be placed as an add-on to an existing policy of a family member before embarking on a fully separate policy (and mom or dad might pay for it).
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At RATESDOTCA, we ran a sample quote with the data available to us for a male driver with basic mandatory coverage and clean driving record living in postal code area M6G 0A1. The quote compares auto insurance premium for the personal usage of 10,000 km per year, driving a 2020 Honda Civic DX 4 DR, between a G2 holder vs a full G licence holder.
| Age | Premium with G2 license only | Premium with full G license |
|---|---|---|
| 18 | $6,200 | $3,694 |
| 19 | $6,193 | $3,433 |
| 20 | $6,186 | $2,580 |
| 21 | $6,016 | $1,968 |
| 22 | $5,954 | $1,923 |
| 23 | $5,431 | $1,808 |
| 24 | $5,382 | $1,762 |
| 25 | $4,787 | $1,757 |
| 26 | $4,791 | $1,578 |
| 27 | $4,795 | $1,573 |
| 28 | $4,798 | $1,491 |
| 29 | $4,800 | $1,499 |
| 30 | $4,805 | $1,507 |
| 40 | $4,773 | $1,448 |
| 50 | $4,698 | $909 |
| 60 | $4,342 | $858 |
As observed above, the premium for a male driver with G2 licence at any age is significantly higher than that of a driver with G licence. Insurance companies consider drivers with a full G licence more trustworthy when it comes to driving on highways, more experienced and less likely to be involved in an accident.
There are several ways to get the cheapest car insurance for G2 drivers including:
Answers to all your questions about car insurance for G2 drivers are here...
With a G2 licence, you can drive anywhere, anytime, by yourself or with passengers on any road or highway in Ontario. However, there are still some restrictions:
The only restrictions stated regarding G2 licensed drivers has to do with passengers and alcohol levels. There are no restrictions about driving out of province, as it is still a full license. Different bordering states may have other restrictions. It would be best to check those states’ laws before taking a road trip.
There are no laws about lending your car to a G2 licensed driver who is not covered under your insurance. However, because of restrictions and risks, any rules that are broken while driving your car could negatively affect your coverage and premiums.
It depends, some companies say you need to have a valid class G driver's licence to rent a car in Ontario. It must be valid for the entire duration of the rental period.
Other companies do accept a G2 license but require the driver to be 25 or older, while others have a 20-24 age rental allowance but with an added “underage fee.” Talk to your local car rental company about their policies and procedures.
While G1 drivers can drive without their own insurance, once you have a G2 license you are an independent driver and require an insurance policy. This may mean being listed as an additional driver on the vehicle of a family member you live with or getting your own policy for the first time. Though G2 drivers can pay more than average, due to factors like age and a short driver’s history, shopping around with our online tool can help find the best G2 auto insurance deal.
G2 insurance costs can vary widely, depending on if you are being added to another policy or are the primary driver on your own. But there are other factors which can impact how much you pay.
These include your personal driving history, where you live and the age and model of the vehicle you’re insuring. If you’re purchasing your first automobile and want to reduce your insurance premiums, consider a pre-owned one or a basic model without too many options. Premiums can be higher for luxury cars or those with options which are complicated to fix in case of collision.
Different companies offer different discounts which can help you offset higher rates for being a newer driver. For instance, some insurers offer discounted rates for policyholders who take drivers education courses.
The best way to save money is by shopping around using an online tool like RATESDOTCA. We work with over 50 of Canada’s best insurance providers to provide you quotes in just a few minutes.
It depends on the driver, their driving history, and the vehicle they wish to insure. There is a reduction in cost which reflect the driver graduating to a new license stage. This is because the change tells insurance companies that a driver has gained more experience and knowledge, helping reduce their risk profile. To take advantage of potential savings when you upgrade to a G licence, shop around using an online tool like RATESDOTCA.
Yes, although this depends on the driver’s needs. If you are over the age of eighteen and are the primary driver of a vehicle, you will need your own insurance. In Ontario it is standard that you have third-party liability, statutory accident benefits and direct compensation-property damage coverages. Additionally, you must have uninsured automobile coverage. There are options you can add on, for example, increasing the amount of third-party liability coverage or adding optional collision or accident benefits coverages.
For some G2 drivers who live at home with family and share a vehicle, they may wish to be added as a second or third driver on a parent’s policy.
*Shoppers in Ontario who obtained an auto insurance quote on RATESDOTCA and transacted via our contact centre from January to December 2022 saved an average amount of $800. The average savings amount represents the difference between the shoppers’ average lowest quoted premium and the average of the second and third lowest quoted premiums generated by RATESDOTCA.
Joel Kranc is a freelance writer and content provider who has worked with RATESDOTCA since 2019. He holds an MA in political science from the University of Toronto and a film certificate from New York University.
He has been published in and worked for such companies as CNN, Rogers Media, Institutional Investor Magazine, The Globe and Mail, Infrastructure Investor, BenefitsPRO Magazine, Global Finance Magazine, With Intelligence, the CPP Investment Board, Hospitals of Ontario Pension Plan, and many more financial services and industry publications.
He is the author of "Retirement Planning in 8 Easy Steps," which, when released in 2015, was No. 11 on the Publisher's Weekly US Bestseller List for Business and Finance, beating out Mark Cuban's "How to Win at the Sport of Business."
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