How Much Is Car Insurance In Ontario For A New Driver?

We hope you are aware that car insurance is a must for every driver in Ontario.

It’s said that Ontario has the highest number of registered drivers in all of Canada. Unfortunately, Ontario is also the province with the highest car insurance costs/rates.

So, how much is car insurance in Ontario for existing drivers?

In 2020, the Insurance Bureau of Canada stated that $1,505 was the average cost of car insurance for old or existing Canadian drivers. For most people (especially new drivers), that’s already a lot of money and can even discourage someone from owning a vehicle or driving on the streets of Ontario.

Sorry to tell you, but the numbers will skyrocket for new/young drivers in Ontario. We’re talking as high as $7,000!

If you’re not an Ontario driver, and instead you’re looking for Nova Scotia car insurance, learn more here.

However, since you are a new driver, we’ll first tell you everything you need to know about car insurance and car insurance rates in Canada. This information will help you a lot when it comes to figuring out how you can save on car insurance.

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

Stating the exact car insurance cost for all new drivers is always going to be a challenge since a lot of factors are put into consideration. However, for the new female drivers in Ontario, car insurance will cost somewhere around $3,200 to $5,200.

For new males drivers, the costs are significantly higher, starting from $3,800 to $7,300.

You might be wondering, “Why do young men pay more for car insurance than young women?”

The number of automobile accidents involving young men doubles those caused by young women.

Why are car insurance rates more expensive for young new drivers than old drivers in Ontario?

Well, there are a lot of factors that can explain the skyrocketing car insurance rates for new drivers in Ontario. Nonetheless, high risk is the main factor behind it all.

First, good driving comes about with a lot of experience. New drivers are yet to get used to the way of the roads. Therefore, they are most likely to cause accidents and damage their cars.

Second, the majority of new drivers are also young. Most of the time, young people lack the patience needed on Canadian roads. Also, teenagers tend to be more prone to engage in reckless acts like driving under the influence of alcohol or driving without seat belts.

All those factors lead to the high car insurance premiums for new drivers (especially for young men).

Note: The bias in car insurance premiums between men and women ends at the age of 25. From age 26 onwards, males and females share the same car insurance costs.

Factors that affect the price of car insurance for new drivers in Ontario

Below are some factors behind the high car insurance premiums for new drivers in Ontario, Canada.

The type of car

The model and make of the car you drive will significantly affect your car insurance premiums.

For example, the more expensive the car, the higher your premiums will be.

Why? Because the overall price of the car also affects the repair and replacement costs of the vehicle.

In addition to that, the more prestigious the car, the higher the chances of car theft.

Vehicle usage

How often do you use your car? The more you use your vehicle, the more the insurance company will charge you for cover.

People who depend on public transport and only drive their cars on weekends will pay less than people who drive their cars every day to and from work or school.

Location

People who live and drive in crowded towns like Toronto will pay more in car insurance premiums than people who live in sparsely populated areas.

Why? Because driving in densely populated areas raises your chances of getting involved in car accidents.

Driving history

Your driving history is among the top three factors that car insurance companies consider when deciding your car insurance premiums.

It’s only normal that there won’t be a lot of driving history for new drivers.

Have you ever been involved in a car accident? Do you have any speeding tickets to your name?—All those will significantly increase your car insurance premiums.

How to save on car insurance rates as a new driver in Ontario

You don’t have to wait until you are 26 to start saving on car insurance.

Below are some of the ways you can take advantage of discounts and save a lot on car insurance premiums.

Choose the right car

New and young drivers tend to go for the flashiest cars they can afford.

Most of them have no idea that expensive cars also mean that their replacements and spare parts are difficult to find—This leads to higher insurance rates for such cars.

Cars that are common, affordable, and with anti-theft devices like family sedans and minivans are cheaper to insure.

Take advantage of discounts

In case you didn’t know, there are special discounts for new drivers in Ontario. These can massively help you with your car insurance.

Below are some of the discounts you can claim:

• Driver training discount: It’s claimable by anyone who has recently finished driving school.
• Multi-vehicle discount: This is helpful for those who seek insurance under their parents’ or spouses’ insurance cover. If there are multiple vehicles under one policy, you can get an overall discount.
• Good-in-school discount: It’s also known as the Good Student Discount. Are you good in high school or college? Then claim this discount.
• Good driving discount: Unlike the others, this isn’t available immediately. You’ll have to get some experience before you can claim it. Usually, this takes a minimum of 3 years driving without accidents or getting in trouble with the law.

There you have it. We hope we’ve answered your question on how much is car insurance in Ontario for a new driver.

You should now be in a better position to save on car insurance premiums despite them being more expensive for young and new drivers.