Car Insurance for New and Young Drivers in Ontario

If you or your teen are shopping for car insurance for new drivers in Ontario, you'll typically see higher premiums at first. New drivers have less experience behind the wheel and little or no driving history for insurers to consider. This guide explains why that matters, how gaining driving experience may affect insurance over time, and what may help you manage the cost.

New and young drivers still need the appropriate auto insurance before getting behind the wheel. The good news is that there are several factors you can discuss with your broker when looking for coverage.

Why Is Insurance Typically Higher for New Drivers?

Insurance companies consider several factors when determining a premium. For a new driver, limited driving experience is an important one.

New drivers have little or no insurance and driving history to demonstrate their habits behind the wheel. This can contribute to the level of risk an insurer associates with a new driver.

But experience is only one part of the picture. Depending on the insurer, factors that can affect your premium may include:

• The make, model, and age of the vehicle
• Whether you're the primary or occasional driver
• How the vehicle is used
• The approximate number of kilometres driven each year
• Where you live
• Your driving and insurance history
• Available discounts

Different insurers may assess these factors differently, which is one reason comparing options can be worthwhile.

Occasional Driver and Primary Driver Status

Understanding occasional driver versus primary driver status is particularly important for young drivers who live at home.

A primary driver is typically the person who drives a particular vehicle most often. An occasional driver is listed on a policy but typically uses the vehicle less frequently.

For example, if your teen occasionally drives a family vehicle, they may be added to the policy as an occasional driver, depending on how the vehicle is actually used and the insurer's requirements. If they have their own vehicle and are its main driver, they would generally need to be listed as the primary driver of that vehicle.

It's important to accurately tell your broker who drives each vehicle and how often. Your broker can then explain how the drivers should be listed and what that may mean for your coverage and premium.

Options That May Help Manage Your Premium

There's no single trick for getting cheaper young driver insurance in Ontario. Your premium depends on your individual circumstances and the insurer.

There are, however, several options that may be worth discussing with your broker:

• Complete an approved driver education program. Depending on the insurer, completing an eligible driver training program may help a new driver qualify for a discount or be recognized for additional driving experience.
• Choose your vehicle carefully. The make, model, age, safety features, repair costs, and theft risk of a vehicle can affect insurance costs.
• Use winter tires. Depending on the insurer, using qualifying winter tires may make you eligible for a discount.
• Ask about multi-vehicle options. If a young driver lives at home, adding them and their vehicle to an existing family policy may be an option, depending on the circumstances.
• Consider combining policies. If you have home and auto insurance, placing eligible policies with the same insurer may provide a discount.
• Review your deductible. Choosing a higher deductible may lower your premium, but it also means you'll pay more out of pocket if you have a covered claim.
• Review coverage on older vehicles. Depending on the vehicle's value, you may want to discuss whether optional collision coverage still makes sense.

Discounts and eligibility vary by insurer, so it's worth asking your broker which options actually apply to you rather than assuming every discount will be available.

You can also learn more about car insurance coverage options before choosing a policy.

What May Happen After a First Ticket or Accident

A ticket or at-fault accident can affect insurance, but exactly what happens will depend on the circumstances and the insurer.

The type of conviction, your driving history, the details of an accident, and your policy can all matter. An at-fault accident may affect your premium or eligibility with an insurer, while different driving convictions can also be treated differently.

For a new driver who is still building a driving record, maintaining a clean record can be particularly valuable.

If you receive a ticket or are involved in an accident, speak with your broker about what it may mean for your policy rather than assuming the outcome.

What Parents May Want to Know

If you're arranging teen driver insurance, one of the first questions to answer is how your teen will actually use the household vehicles.

Will they occasionally borrow your vehicle? Will they regularly drive one car to school or work? Are you buying another vehicle that will primarily be theirs?

Those details matter when determining how the driver should be listed on the policy.

It's also a good time to talk about the bigger picture. The vehicle your teen drives, how often they drive, their driver training, and their driving record can all affect insurance.

As their driving situation changes, keep your broker updated. Getting their own vehicle, moving away from home, or changing how frequently they drive can all be reasons to review the policy.

Why Compare Options with a Broker?

Insurance companies don't all assess new and young drivers in exactly the same way. That can result in differences in premiums, available discounts, and coverage options.

Instead of contacting insurers one by one, a broker can help you compare available options and understand what you're actually getting.

PetleyHare is a local family business with more than 100 years of experience. We work with multiple leading Canadian insurance companies, giving you more than one option to consider. And if you have questions about adding your teen to a policy or arranging their first coverage, you can speak with a real person who can walk you through it.

Ready to Review Your Options?

Whether you're getting insured for the first time or helping your teen get behind the wheel, you don't have to sort through the options alone.

Request a quote or call 1.800.216.3524 to speak with a PetleyHare broker about coverage for a new or young driver.