Do I need my own policy as a G2 driver?

Only if you're the registered owner of the vehicle. Once you get your G2, you can be listed either as a principal operator or occasional driver under someone else's policy, depending on how many vehicles and drivers there are in the household and how you use the vehicle.

How long am I considered a "new driver"?

Typically 3 years from your first Ontario license, though age (under 25) can extend this classification. The graduated licensing system requires drivers to progress through three stages (G1, G2, and G), meeting specific requirements at each level.

What are the key restrictions for G1 and G2 drivers?

G1 : Must maintain zero blood alcohol and zero THC, require supervision by fully licensed driver with 4+ years experience, cannot drive on 400-series highways or between midnight and 5 a.m. G2 : Must maintain zero blood alcohol and zero THC, can drive independently on all Ontario roads at any time. Drivers 19 and under have additional restrictions: between midnight and 5 a.m., can only have one passenger 19 or under (unless family members).

Can I get insurance with a G1 license only?

It’s decided on a case-by-case basis. Generally, a G1 driver cannot get their own policy unless there’s someone in the household with a valid G2 or full G licence in Ontario.

How does the 12-month probationary period work?

You must hold your G2 license for minimum 12 months before taking the final G road test (or 8 months if you complete an approved driver training course). During this time, you have full driving privileges but must maintain zero blood alcohol/THC and follow passenger restrictions if you're 19 or under.

Will my international driving experience help?

Yes, if properly documented. North American experience is most readily accepted; international experience may receive up to 3 years credit.

What if I can't get standard insurance?

High-risk or Facility Association coverage is available for all drivers, though at higher cost.

Car Insurance for New Drivers Ontario 2025

New drivers in Ontario face some of the highest auto insurance premiums in Canada. But with the right knowledge and strategies, you can reduce these costs while ensuring you have the coverage you need. This in-depth 2025 guide from carinsuranceinontario.ca explains what factors impact your rates, the mandatory coverage types, and how to find the best insurance tailored for new Ontario drivers.

Key Takeaways

Understanding the essentials upfront can save you time and money. Here are the critical points every new driver in Ontario should know:

New drivers with less than 3 years of experience pay 60-300% more on premiums due to higher accident risk.
Ontario mandates three core insurance coverages, plus a highly recommended optional coverage.
Your postal code significantly affects your insurance rates, with some cities seeing rate changes over 14% in 2025.
Accident reporting rules updated in 2025 require police involvement only if total damage exceeds $5,000 (previously $2,000).

What Makes You a New Driver in Ontario?

Determining who qualifies as a new driver is essential because it directly affects how insurance companies assess risk and set your premiums. In Ontario, the classification goes beyond just age—it also involves your driving experience and the stage of your driver’s license. Understanding these factors can help clarify why your insurance rates may be higher and what to expect as you gain more experience behind the wheel. Below, we break down the key criteria insurers use to define a new driver.

Age-Based Classification – It’s Not Just About Your Age

Drivers under 25 or those with less than 3 years of licensed driving experience are almost always classified as new drivers.
Even if you’re older (e.g., 35) but just got your first Ontario license, you’ll still face new driver rates until you have 3 years of driving history.

License Stage Classifications – Understanding Your Status

G1 License: Learner stage requiring supervision by a fully licensed driver with 4+ years experience.
G2 License: After holding a G1 for 12 months (or 8 with recognized training), you can drive independently. G2 drivers can get their own insurance policy, although sometimes staying on a family policy is cheaper.
Full G License (3 years experience): May still pay new driver rates until three years of driving experience is reached.

Special Circumstances – You’re Not Alone

New Immigrants: Proof of foreign driving experience may reduce premiums.
Inter-Provincial Movers: Driving experience from other provinces or the US may be credited with proper documentation.
Mature First-Time Drivers: Still charged new driver rates but may find tailored coverage options.

The Four Foundational Coverage Types Commonly Included in New Driver Policies in Ontario

When selecting car insurance as a new driver, it’s important to understand the core types of coverage typically included in policies for new drivers in Ontario. While there are several optional coverages available, these foundational types form the basis of most insurance plans and are either required by law or strongly recommended to provide essential protection. Understanding these coverage types will help you better navigate your insurance options and ensure you have the right level of protection for your driving situation. Below is an overview of these key coverage components commonly found in new driver policies in Ontario.

1. Third-Party Liability (Mandatory) – Your Financial Shield

Protects you if you cause injury or property damage to others. Ontario law requires a minimum of $200,000, but experts recommend at least $1 million liability coverage for peace of mind. Learn more about liability auto insurance coverage

2. Statutory Accident Benefits (Mandatory) – Your Safety Net

Covers medical treatment, rehabilitation, and income replacement regardless of fault to ensure injured drivers and passengers get timely support. Learn more about Ontario Accident Benefits insurance coverage

3. Uninsured Automobile Coverage (Mandatory) – Protection from Others’ Negligence

Covers damages when hit by uninsured drivers which an essential protection on Ontario roads. Learn more about Uninsured Motorist Coverage in Ontario

4. Direct Compensation Property Damage (Optional but Strongly Recommended)

Since January 1, 2024, DCPD coverage is optional. If kept, your insurer handles repairs when you’re not at fault. Opting out reduces premiums slightly but exposes you to repair costs if another driver is at fault. Learn more about DCPD insurance coverage in Ontario

What to Do After an Accident as a New Driver to Protect Your Insurance Claim

Even the most careful new driver can face an accident. Knowing exactly what to do in those first moments can protect your safety, preserve your legal rights, and help ensure your insurance claim is processed smoothly.

Step 1: Stop Safely and Stay Calm

Pull over to a safe spot, switch on your hazard lights, and take a moment to steady yourself before acting.

Step 2: Check for Injuries and Call Emergency Services

Confirm everyone’s safety. Call 911 if there are injuries, hazards, or if you feel unsafe.

Step 3: Accident Reporting Rules for New Drivers in 2025

You must notify police if damage appears to exceed $5,000, if anyone is injured, impaired driving is suspected, or in a hit-and-run incident.

Step 4: Exchange Information Without Admitting Fault

Gather driver’s license, plate numbers, insurance company names, and contact details. Keep your conversation polite but do not admit fault — let the insurers determine liability.

Step 5: Document the Scene Thoroughly

Take clear photos of the vehicles, damage, road conditions, and any relevant signs or landmarks. Write down details while they are fresh in your memory.

Step 6: Contact Your Insurance Broker Promptly

Report the accident to your broker or insurer as soon as possible. Early notification can speed up the claim process and help avoid disputes later.

How Much Does Car Insurance Cost for New Drivers in Ontario in 2025?

Car insurance premiums for new drivers in Ontario can vary widely depending on several factors, including age, location, driving history, and the type of coverage selected. New drivers often face higher rates compared to experienced drivers due to their limited driving record and statistically higher risk of accidents. In 2025, average costs have been influenced by market trends, regional differences, and changes in provincial regulations. Understanding these cost drivers can help you better anticipate your insurance expenses and explore ways to manage your premiums effectively. The following sections provide detailed insights into current market rates, key factors affecting costs, and regional variations across Ontario

Current Market Rates – The Facts

Average provincial premium is about $2,006 annually (FSRAO, 2025).
New drivers typically pay 60-300% more than experienced drivers due to greater accident risk.
The average rate increased approximately 4.1% in 2025.

Cities with Largest Rate Increases

Kingston: +14.73%
Barrie: +13.78%
Windsor: +12.69%

What Affects Your Premium? Key Factors

Age: Drivers under 25 pay higher premiums; insuring under a family policy can reduce costs.
Location: Urban centers like Toronto and Brampton have 50-75% higher rates than rural areas.
Vehicle type: Sports and luxury cars can raise premiums by 40-60%.
Driving record: Clean records yield 15-25% savings.
Coverage levels: Full coverage 25-35% more expensive than basic.

Regional Cost Variations

Higher insurance rates in GTA and high-theft cities.
Generally lower premiums in rural and northern Ontario areas.

Insurance Requirements for G1 and G2 Drivers – What You Need to Know

Ontario’s Graduated Licensing System is designed to help new drivers gain experience gradually and safely. Along with specific driving restrictions, G1 and G2 license holders face unique insurance requirements that differ from fully licensed drivers. Knowing these insurance rules and how they affect your coverage options is essential for compliance and cost management. This section explains what new drivers with G1 and G2 licenses need to know about insurance, including who can be listed on policies and how premiums may be impacted during each stage of the licensing process.

G1 License – The Supervised Learning Phase

Must be supervised by a fully licensed driver with at least 4 years driving experience and zero blood alcohol.
No highway or late-night driving allowed.
Typically covered as an occasional driver under a family policy, not requiring a personal insurance premium.

G2 License – Independence Begins

Can drive independently at all times under zero blood alcohol and cannabis limits.
Must purchase individual insurance or be principal driver on vehicle.
Passenger restrictions apply for drivers 19 or under.

New to Canada? Getting Credit for Your International Driving Experience

If you’re new to Ontario and have driving experience from another country, you may be eligible to receive credit for that history when applying for car insurance. Properly documenting your previous driving record can help reduce your premiums by demonstrating your driving skills and claim history. While recognition of international experience varies between insurers, submitting the right paperwork is a crucial step toward getting fairer rates.

Documentation Required

Authenticated driving history letter from your home country.
English or French translation if necessary.

Credit Limits

US driving experience is typically fully recognized.
Other countries may grant up to 3 years of credit, depending on insurer.

Seven Proven Ways to Lower Your New Driver Insurance Costs

Choose an Insurance-Friendly Vehicle
Opt for compact sedans (Honda Civic, Toyota Corolla) or small SUVs (Honda CR-V, Toyota RAV4). Avoid luxury, sports, or high-theft vehicles.
Complete MTO-Recognized Driver Training
Shortens G2 waiting period from 12 to 8 months and offers discounts up to 15%.
Use Telematics Programs
Safe driving monitored through apps can lower premiums by up to 20%.
Adjust Your Deductibles Strategically
Raising deductibles from $500 to $1,000 can save about 8-12%, though it increases out-of-pocket risk.
Pay Annually Instead of Monthly
Avoid monthly processing fees (1.3%) by paying premiums annually.
Bundle with Family Policies
Multi-vehicle and multi-policy discounts, plus family no-claims bonuses, reduce rates.
Consider Your Location Carefully
Moving to a lower-cost postal code can cut premiums by 25-75%.

High-Risk New Drivers – Understanding Your Situation

For new drivers with a challenging driving record, such as recent at-fault accidents or traffic convictions, insurance can become more complicated and costly. Being classified as a high-risk driver means insurers may view you as more likely to file claims, leading to higher premiums or limited coverage options. Understanding what factors contribute to this classification and the available insurance solutions can help you navigate your options more effectively and find coverage that fits your needs.

Impact of At-Fault Accidents and Tickets

At-fault accidents raise premiums significantly.
Demerit points affect license status but not premiums directly.

When You Need High-Risk Coverage

Criminal convictions (impaired or dangerous driving).
Multiple major violations or license suspensions.

Options for High-Risk Drivers

Specialized insurers or Facility Association (last resort coverage).
Broker assistance is important for navigating options.

Why Trust carinsuranceinontario.ca?

Choosing the right insurance provider is crucial, especially for new drivers navigating Ontario’s complex auto insurance landscape. At carinsuranceinontario.ca, our goal is to make this process transparent, easy, and tailored to your needs. With our team of licensed brokers and extensive access to over 17 leading insurance companies, we prioritize finding the best coverage and rates for you—not just selling a policy. Our commitment to professionalism, industry knowledge, and personalized service ensures you can trust us to guide you every step of the way.

We Work for You, Not Insurance Companies

Our licensed brokers search multiple top insurers to find the best rates tailored specifically to your situation.

Professional Credentials You Can Rely On

Licensed by the Registered Insurance Brokers of Ontario (RIBO)

Free Service, Expert Results

Our service is 100% free with no-obligation quotes and expert advice every step of the way.

Take Action – Get Your New Driver Insurance Quote Today

Don’t let high insurance costs keep you off the road. Whether you’re a G1 learner, G2 driver, or new Canadian, our licensed brokers at carinsuranceinontario.ca can find you the right coverage at the best price. Get your free quote now and start saving.

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Auto Insurance FAQs for New Drivers in Ontario

For new drivers, arranging insurance can feel overwhelming. To make it easier, here are direct answers to the most common questions you’ll face.

Do I need my own policy as a G2 driver?

Only if you’re the registered owner of the vehicle. Once you get your G2, you can be listed either as a principal operator or occasional driver under someone else’s policy, depending on how many vehicles and drivers there are in the household and how you use the vehicle.
How long am I considered a “new driver”?

Typically 3 years from your first Ontario license, though age (under 25) can extend this classification. The graduated licensing system requires drivers to progress through three stages (G1, G2, and G), meeting specific requirements at each level.
What are the key restrictions for G1 and G2 drivers?

G1: Must maintain zero blood alcohol and zero THC, require supervision by fully licensed driver with 4+ years experience, cannot drive on 400-series highways or between midnight and 5 a.m.

G2: Must maintain zero blood alcohol and zero THC, can drive independently on all Ontario roads at any time. Drivers 19 and under have additional restrictions: between midnight and 5 a.m., can only have one passenger 19 or under (unless family members).
Can I get insurance with a G1 license only?

It’s decided on a case-by-case basis. Generally, a G1 driver cannot get their own policy unless there’s someone in the household with a valid G2 or full G licence in Ontario.
How does the 12-month probationary period work?

You must hold your G2 license for minimum 12 months before taking the final G road test (or 8 months if you complete an approved driver training course). During this time, you have full driving privileges but must maintain zero blood alcohol/THC and follow passenger restrictions if you’re 19 or under.
Will my international driving experience help?

Yes, if properly documented. North American experience is most readily accepted; international experience may receive up to 3 years credit.
What if I can’t get standard insurance?

High-risk or Facility Association coverage is available for all drivers, though at higher cost.

Legal Disclaimer

This information is for educational purposes only and not professional advice. Insurance laws change, and individual needs vary. Always consult qualified professionals for personalized guidance. We are not liable for actions based on this content.

Peter Martire, (Chartered Insurance Professional), CRM, RIBO