Ontario Car Insurance for New Drivers: G1, G2 and Newcomers

car insurance for new drivers in Ontario: G1 and G2

What is considered a new driver in Ontario?

This Includes:

  • G1 licenced driver – a probationary G1 driver’s license falls under the “new driver” category
  • G2 licensed driver –  still under a probationary license period, with more driving experience than a G1 driver. 
  • Full G licensed driver –  the last step in Ontario’s graduated driver’s licence program

What is new driver car insurance in Ontario?

Categories of New Drivers in Ontario

  • Newly licensed drivers
  • Immigrants and Newcomers from out of the country
  • Drivers who recently moved to Ontario from another province
  • Mature drivers getting insurance for the first time
  • Young adults
New Driver Insurance Ontario

Compare Ontario New Driver Auto Insurance Quotes

We specialize in car insurance for new drivers in Ontario. Whether you’re coming from another province in Canada, or out-of-country, we have an insurance solution for you. With access to the top insurance providers in Canada, we can help you compare quotes for the cheapest and best prices. Call, text or email us today for a comprehensive quotation.

How does car insurance work for a new Ontario driver?

New drivers without prior driving experience

New drivers with prior driving experience

New Driver Car Insurance for G1 and G2 Drivers

How car insurance works for new G1 drivers

Here’s an overview of how car insurance works for new G1 drivers:

  • G1 drivers must always be accompanied by a fully licensed driver with at least four years of driving experience. This supervisor must sit in the front passenger seat and have a blood alcohol level below 0.05%. If these conditions are not met, the risk of having your claim denied should an accident occur is considerably high. The Ontario Auto Policy (OAP1), contains an exclusion whereby the vehicle’s operation must be authorized by law – Statutory Condition 4(1): Authority to Drive.
  • You must disclose to your insurance company once you obtain your G1 driver’s license.  Failure to do so may affect your coverage and can result in your claim being denied. 
  • G1 drivers typically do not need their own insurance policy. They are often insured under someone else’s policy and are not charged a premium for being on the policy. However, there are some exceptions to the rule. A G1 licensed driver can purchase auto insurance in their name, only if that person is the vehicle’s registered owner and no other licensed drivers live in that household.

How car insurance works for new G2 drivers?

Do G2 new drivers need to be on their own policy?

How much does car insurance cost for a new driver in Ontario?

Age and Gender:

  • Younger drivers can expect to pay more due to a higher risk of accidents
  • Males pay more than females, as it’s statistically proven that female drivers are safer drivers

Driving Experience: 

  • New drivers with little or no driving experience are considered higher risk and therefore pay more in car insurance 


  • Location and postal code is a big factor in car insurance premiums. If you live in a densely populated area, like Brampton or Toronto, you will face higher premiums than somewhere less populated.  

Vehicle type:

  • Vehicles vary in value. The higher the vehicle’s value, the more premium you will pay. This reflects the cost to repair or replace the car, should a claim arise.  

Coverage Level:

  • Depending on risk appetite, a new driver may choose more or less coverage. However, some coverage, such as Uninsured Motorist, is mandatory and cannot be altered.  Some coverages such as liability can be decreased to generate a cheaper premium. 
  • Deductible amounts can affect overall premium costs. Increasing your deductible will decrease your overall premium while lowering it will produce the opposite effect. 

Driving Record:

  • Accidents, traffic violations (parking tickets not included), and cancellations for non-payment will increase the cost of car insurance.  The cleaner your driving record, the cheaper your car insurance will be. 

Discounts and Programs:

  • Driver training from an accredited driving school recognized by the Ontario Ministry of Transportation can reduce your premiums by up to 15%. 
  • Telematics or Usage-based car insurance monitors can help promote and foster safe driving habits and behaviour.   Savings of up to 20% can be realized by participating new drivers. 

Insurer Pricing:

  • Insurance companies consistently and routinely change their pricing, so shopping around and comparing quotes is the only way to find the cheapest rate for new drivers.

Number of Drivers on the Policy:

  • An auto insurance policy factors all listed drivers on a policy. The risk profiles of all drivers are used to calculate the final premium amount. The at-fault accidents and traffic violations of any one driver will impact the insurance rates for all drivers covered under the same policy. 

What’s the cheapest car insurance for new drivers?

What’s the best insurance company for new drivers?


  • The cost of car insurance for new drivers is higher than for other categories of drivers, making it essential for most people to find the most affordable option.

Coverage Options:

  • It’s important to know what type and amount of coverage you need, and what coverages can be reduced or increased. Some insurers may choose to restrict some coverages, while others won’t.  Increasing or decreasing your deductible according to your risk tolerance and budget can help narrow down the best car insurance solution. Moreover, opting in or out of optional loss coverages, such as rental coverage, and damages to non-woned vehicles can influence the overall cost. Always confirm with your broker or agent so you fully understand how increasing, omitting or dropping coverage will affect you. 

New Driver with Convictions

  • One or more serious/criminal convictions in the preceding three years (decline) – high risk 
  • One or more major convictions in the preceding three years (decline) – high risk
  • One or more minor convictions in the preceding three years – (decline)  – high risk

New drivers with a combination of convictions, at-fault accidents and cancellations for non-payment

  • One or more cancellations for non-payment and two or more convictions in the preceding three years.  (decline) – high risk
  • One or more minor convictions and two or more cancellations for non-payment in the preceding three years. (decline) – high risk
  • One at-fault accident in the preceding six years and two or more minor convictions in the preceding three years. (decline) – high risk

New driver licensed less than 4 Years or have a G1/G2 license

  • One or more at-fault accidents within the last 3 years for a PO licensed less than 4 years, or licensed at a class G1 or G2. (decline) – high risk
  • Never been listed as a driver on a policy, and has one or more at-fault accidents within the last year. (decline) – high risk

New driver car insurance with and without telematics – pros and cons

Impact of New Drivers on Insurance Premiums

New drivers with demerit points

New drivers from Out of Country

What if you have driving experience from outside of Ontario, but within North America?

  • Letter from the previous company’s Underwriter or Agent/Broker
  • Letter from the Military or Self-Insurer

What happens if you have driving experience outside of Canada and the United States?

Tips on how to lower your car insurance as a new driver

Pick the right vehicle:

  • Some vehicles are more expensive to insure than others. Factors such as repair costs, vehicle value, and statistical data on claim frequency all contribute to the insurance cost for a particular vehicle.

Telematics or Usage-Based Insurance:

  • Drivers who choose telematics or usage-based insurance can save up to 20% off their annual auto insurance premiums. This can translate to thousands of dollars in savings. 

Driver Training:

  • Having a driver training certificate recognized by the Ministry of Transportation can save a new driver up to 15% off their annual insurance premium.

Increase your Deductible:

  • Increasing your deductible will decrease your overall premium. However, keep in mind that you’d be responsible for paying your deductible on an insured loss. 

Pay the Annual Premium Upfront:

  • Insurance companies charge a small fee for offering monthly payment options.  The rate is typically 1.3% for auto insurance, which can be eliminated if the annual premium is paid at once. 

Move to a Different City:

  • Moving to another city to save on car insurance sounds like an extreme or unreasonable measure for many people. Not everyone can simply uproot themselves and their family to save money on auto insurance.  However, if the circumstances are right (e.g. work 100% remotely or rent your home) you can significantly reduce your auto insurance premium by 50% or more. For example, a new driver living in Tillsonburg would pay 75% less compared to the same risk profile from the Brampton or Toronto area. 

Peter Martire, CIP, CRM, RIBO – Executive Editor and Insurance Advisor

Peter has been working in the insurance industry since 2005. He has over 18 years of experience adjudicating complex auto insurance claims and sales and service brokering. In March of 2024, he partnered with Begin Insurance Inc. as a Senior Insurance Advisor. He also serves as Executive Editor of carinsuranceinontario .ca.

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