Yes, new drivers in Ontario usually pay more for car insurance than experienced drivers, because insurers have no driving history to rely on. The good news is that the price tends to fall as you collect clean years behind the wheel. A G1 learner is normally added to an existing family policy, and a few smart choices can keep the cost manageable.
Key takeaways
- A G1 or G2 driver should be reported to your insurer right away, even if you are not buying a new policy.
- New drivers usually pay more, and the price tends to fall with experience and a clean record.
- Many insurers discount an approved driver-training course. Ask before you enrol.
- Your coverage choices, the car you drive and who is on the policy all affect the price.
- Comparing a family policy with a separate policy through a broker can save money.
How the G1 and G2 stages work
Ontario uses a graduated licensing system. It lets new drivers build skills in steps rather than all at once. There are three stages: G1, G2 and G.
G1: the learner stage
G1 is the learner licence. It lasts 12 months in most cases. While you hold it, you must drive with a fully licensed driver who has at least four years of experience, unless you are with a certified driver instructor. You must have zero blood alcohol, you cannot drive between midnight and 5 a.m., and you cannot use 400-series highways or high-speed expressways.
Completing a government-approved driver education course can shorten the wait for the first road test from 12 months to eight months.
G2: the novice stage
After the first road test, you move to G2. It also lasts 12 months. You can drive without another experienced driver, on all Ontario roads and at most times of day. Zero blood alcohol still applies. Drivers aged 19 and under also face passenger limits between midnight and 5 a.m.
G: the full licence
After 12 months as a G2 driver you can take the final road test. Most people finish the whole process in about 20 months, and it must be completed within five years. Rules can change, so check the current details on Ontario.ca.
Why new drivers pay more
Insurance is priced on risk. An insurer looks at the information it has and estimates how likely a claim is. For a driver with a few months of experience, there is very little to go on. That uncertainty is built into the price.
The price for a new driver is shaped by the same things that affect everyone, described in our guide to how Ontario car insurance rates are calculated:
- Age and years licensed
- Driving record and claims history
- How the car is used and how far it is driven
- The make, model and year of the car
- Where the car is parked (postal-code territory)
- Coverage choices and deductibles
- Discounts, such as multiple vehicles, winter tires and bundling with home
For a new driver, years licensed is the factor that works against you the most. It is also the one that improves on its own with time.
Getting a G1 or G2 on insurance
Tell your insurer early
Every licensed driver in the household should be known to the insurer. When a family member earns a G1, tell your broker. The insurer will want to know who drives which vehicle and how often. Leaving someone off a policy can cause serious trouble when you make a claim.
Family policy or separate policy
A new driver can be added to a parent's policy, or buy their own. Often the family policy costs less, especially if the household has several vehicles or bundles home and auto insurance. But this is not guaranteed. A separate policy can protect a parent's record if the new driver has a claim, so it is worth asking a broker to price both options.
Which car you drive
The make, model and year of the vehicle matter. A 2021 compact SUV and a high-powered sports car in the same driveway will not cost the same to insure. If a new driver will have a car of their own, ask for quotes before you buy it, not after.
Ways to keep the cost down
None of these is a magic trick. They are practical steps that add up.
- Take an approved driver-training course. Many insurers discount it. Ontario.ca also lists a shorter G1 wait for approved courses. Confirm the discount with your insurer first, since it varies.
- Keep a clean record. At-fault claims and traffic convictions stay on your record for years. Insurers commonly look back six years for at-fault accidents and three years for convictions. Read more in what an at-fault accident does to your rates.
- Install winter tires. Ontario insurers must offer a discount for four matching winter tires, typically a few percent. All-season M+S tires usually do not qualify.
- Bundle and combine. Insuring several vehicles with one insurer, or pairing auto with home, often earns a discount.
- Choose a deductible you can afford. A higher deductible usually lowers the premium, but you must be able to pay it after a claim.
- Drive less when you can. How far you drive each year affects the price, so report it honestly.
Do not cut the mandatory protections to save money. Every Ontario policy includes third-party liability (the legal minimum is $200,000, and many people choose $1 million or $2 million), statutory accident benefits and uninsured automobile coverage. A new driver with little experience should think carefully about liability limits.
Coverage choices that matter for new drivers
Liability
Liability pays when you are responsible for injuring someone or damaging their property. Claims can be large, so a higher limit is often worth the modest extra premium. Ask your broker to show you the price difference between limits.
Collision and comprehensive
These are optional. Collision covers damage to your car in a crash. Comprehensive covers things like theft, fire and vandalism. If the car is older and not worth much, you may decide the cost is not worth it. If the car is newer or financed, the lender often requires them.
Useful endorsements
An endorsement is an add-on to a policy. Ones to ask about include OPCF 20 (a rental car while yours is being repaired), OPCF 27 (liability for damage to a vehicle you borrow or rent) and OPCF 43 (waiver of depreciation on a newer car). Not every new driver needs them. They are a good conversation to have with your broker.
Accident benefits after July 2026
Accident benefits changed on 1 July 2026. Medical, rehabilitation and attendant care benefits remain mandatory. Other benefits, such as income replacement, became optional to buy. This matters for a young driver who works part time or is a student. Learn more in Ontario accident benefits changes from July 2026.
What to ask your broker
Before you sign anything, bring these questions:
- How much does the policy change if I add a G1 or G2 driver?
- Is a family policy cheaper than a separate policy for the new driver?
- Which driver-training courses earn a discount, and how big is it?
- What happens to our premium after a claim by the new driver?
- Which optional coverages and endorsements make sense for this car?
- How much liability coverage should we carry? See how much liability coverage you need in Ontario.
A broker can compare several insurers for you. In Ontario, brokers are licensed by RIBO, the Registered Insurance Brokers of Ontario. You can learn more about rules and consumer protection from FSRA, the Financial Services Regulatory Authority of Ontario.
When you are ready, you can start a car insurance quote and see how the options compare.
Final thought
The first years of driving are the most expensive for insurance, but they do not last. Report your new driver early, ask about every discount, drive carefully and keep your record clean. In a few years, the price will look very different.
This article is general information, not insurance, legal or financial advice. Rules and prices change and vary by insurer. Reviewed October 2026.
