Cheap Car Insurance Quotes for G2 Drivers

G2 drivers’ car insurance

Ready to become a fully licensed driver? Acquiring your class G2 license is the next logical step – after you get your G1, of course.

As you hopefully already know, driving is a huge responsibility. You’re responsible not only for your own life but the lives of everyone around you – your passengers, pedestrians and people in other cars. No matter how careful you are as a driver, things can still go wrong, and someone can still get hurt (whether you’re at fault or not). That’s why most of us need car insurance.

Is car insurance mandatory for G2 drivers in Ontario?

Yes. All drivers in Ontario are legally required to have valid car insurance. If caught driving without it, you may have to pay a fine ranging from $5,000 to $50,000, regardless of your driver’s license class. Your driver’s license may, in fact, get suspended in addition to this, and your vehicle impounded. Furthermore, insurance companies may consider you a ‘high-risk driver’ and charge you a higher premium as a result.

So, don’t start off your driving journey on the wrong foot and buy yourself car insurance. It can be pricy, yes, but it’s worth it in the long run. Your basic policy in Ontario must cover the following:

• Third-party liability
• Statutory accident benefits
• Direct compensation – Property damage (DC-PD)
• Uninsured driver

See all mandatory and optional auto insurance coverages now.

When do G2 drivers need to get insured?

By the time you get behind the wheel of a vehicle, you should have valid car insurance. This means that you should’ve already been insured as a G1 driver – though G1 drivers can only be covered by someone else's insurance (belonging to their parent or guardian, for instance). G2 drivers, on the other hand, can carry their own insurance, though it’s likely to cost them more than sharing a policy with someone else.

Why are premiums more expensive for G2 drivers?

G2 drivers are new and untested. This uncertainty is what causes insurers to charge them higher premiums. Here are the biggest factors that play a role in this:

1) Driving history (or lack thereof). As a G2 driver, you simply haven’t driven long enough to have a history. As such, there is no way for insurers to determine whether you’re a good driver or a bad one. Until you prove which one you are, you pose a high risk by default (more on that below), which is why your premiums are likely to be expensive.

The good news is that as you drive, your driving history will grow. As long as you drive regularly and avoid traffic tickets and car accidents, your premiums should go down eventually. If you’re looking for an easy fix on this, however, you won’t find one, unfortunately, as time and regular driving are the only two things that can build out your history.

That’s why drivers in their 50s, especially those with clean records, get the cheapest premiums – they've been driving long enough to have earned them.

2) No driving experience. You can’t have driving experience without driving (obviously). The problem is that, statistically, inexperienced drivers are more likely to incur traffic tickets or get into accidents, which is what increases your premiums as a G2 driver.

However, you don’t have to be a statistic yourself. By following the rules, paying attention to the road and driving carefully, you can avoid filing a claim. To help you with that, be sure to take government-certified driving classes to ensure you actually know all the rules as well as how to drive defensively. This will not only make you a better driver but lower your premiums.

You should also get your G class driver’s license as soon as possible, as doing so will signal to insurers that you’re a more experienced driver and further lower your premiums (by a significant amount, in fact).

3) G2 drivers pose a higher risk. This is not to say that having a G2 license makes you, specifically, a bad driver, as everyone has to start somewhere. However, younger drivers do tend to be more dangerous, particularly those under the age of 25, as they get into more accidents and file more claims.

In fact, over 700 young people are killed in road crashes each year in Canada, while 50,000 are injured, often seriously, according to the Traffic Injury Research Foundation. These are the kinds of statistics that drive premiums up for young people, whether you’re good behind the wheel or not.

Here a few things you can do to lower your risks as a G2 driver:

• If you drive your parent or guardian’s car, get them to add you to their policy as an occasional driver.
• Don’t drive cars with big engines, such as sports cars, since they are known to raise premiums.
• Don’t drive during winter, foregoing your car insurance for the whole season, if you can, as winter tends to lead to more accidents.

Can G2 drivers have their own car insurance, or should they be added to someone else’s insurance policy?

Unlike G1 drivers, G2 drivers can have their own car insurance as well as drive their own car. However, their premiums would be incredibly high due to some of the factors outlined above. As a result, we strongly recommend that as a G2 driver, you drive under your parent or guardian’s policy – though, technically, anyone with a full license, whose car you intend to drive, can share their policy with you.

They can add you to their policy as an ‘occasional driver’ – also known as a ‘second driver’ – while they themselves will remain as the ‘primary driver.’ By going this route, you can avoid high premiums until you improve your driving record and gain more experience – or until you earn a G license.

Car insurance rates for G2 drivers vs. G drivers in Ontario, by age

According to our recent data, getting a G2 driver’s license at an older age may yield cheaper yearly premiums, though they won’t be nearly as cheap as for drivers with a G license. In fact, having a G license can almost halve your yearly premiums if you’re a young driver.

For instance, while an 18-year-old G2 driver, who’s gotten their first license at 18, may pay $6,200 per year, an 18-year-old G driver, who’s gotten their first license at 16, may instead only pay $3,694 per year. As noted in the disclaimer above, this is based on a specific profile, so take these numbers with a grain of salt – they may not apply to you.

This discrepancy between G2 and G drivers only keeps growing with age. For example, as a G2 driver at 60, who’s gotten their license at the same age, you may end up paying $4,342 per year for your insurance. However, as a G driver at 60, who’s gotten their license at 16, you may only have to pay $858 per year, which is five times less.

What this indicates is that if you want to lower your premiums, no matter how old you are, you should get a G class driver’s license as soon as possible. Furthermore, it appears that age isn’t nearly as important as driving experience, so be sure to drive regularly and keep that driving record clean.

Note: This data is based on a profile of a male driver in Toronto (postal code starting with M6G), who has mandatory auto insurance coverage, a clean record and drives a 2020 Honda Civic DX 4dr, 10,000 km per year.

Mandatory and optional auto insurance coverages for G2 drivers