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.
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:
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.
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:
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.
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|Savings: $1,353 (16%)|
|Savings: $1,550 (31%)|
|Savings: $3,069 (41%)|
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.
|Driver’s age||Yearly premium (G2 drivers)||Age when first licensed (G2 drivers)||Yearly premium (G drivers)||Age when first licensed (G drivers)|
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.
|Insurance type||Mandatory coverage||Optional/ Additional Coverage|
|Third-Party Liability||$200,000 minimum. Provides coverage in the event of a lawsuit resulting from an accident where you are at fault.||Coverage can be increased to $500,000, $1 million, or $2 million, with up to $2 million limit.|
|Direct Compensation-Property Damage (DC-PD)||Covers damage to your car, or loss of use of your vehicle, if someone else is at fault. Must involve another insured vehicle.||For additional vehicle coverage, including for when you are at-fault, consider collision coverage.|
|Uninsured Automobile Insurance||Provides up to $200,000 in coverage if you are injured or killed by an uninsured driver, or if your vehicle is damaged as a result of a hit-and-run by an unidentified, uninsured motorist.||Family Protection Coverage is an optional coverage that includes additional coverage of up to $1 million in the case of a hit-and-run by an uninsured motorist.|
|Statutory Accident Benefits||Provides coverage if you are injured in an accident, regardless of who is at fault. Covers medical expenses that aren’t covered by OHIP.||Coverage limits can be increased.|
|Collision Coverage (Also Upset Coverage)||Optional||Covers the costs of repairing or replacing your vehicle following a collision with another vehicle, an object, or property.|
|Comprehensive coverage||Optional||Covers damages caused by named perils identified under the Specified Perils coverage, as well as losses from other perils like falling or flying objects, theft, fire, hail, windstorms, missiles, and vandalism.|
|Specified Perils Coverage||Optional||Covers damages caused by named perils such as theft, attempted theft, explosions, natural disasters like fire, lightning, windstorm, hail, rising water, earthquakes, and other perils specified in your policy. Specified perils do not cover damages due to vandalism, breakage of glass, etc.|
|All-Perils Coverage||Optional||Combines collision/upset and comprehensive coverage. Also, provides additional protection if a household member or an employee steals your vehicle.|
|OPCF 20: Coverage for Transportation Replacement||Optional||Covers the cost of your transportation replacement and rental car insurance if you were to get into a car accident or if your vehicle is stolen.|
|OPCF 27: Liability for Damage to Non-Owned Automobile(s)||Optional||Covers if you damage a borrowed or rental vehicle. The coverage limit is usually around $25,000 to $50,000.|
|OPCF 39: Accident Waiver/Forgiveness||Optional||Protect your premium from rising when you have your first at-fault accident.|
|OPCF 16: Suspension of coverage||Optional||This allows you to suspend your insurance coverage for 30 days or more during periods when you aren't using the car.|
|OPCF 43: Waiver of depreciation||Optional||Ensures your insurance company won't factor in depreciation when settling a claim; you will receive the amount you initially paid for the car.|
|OPCF 44R: Family protection coverage||Optional||Ensures your costs are covered if you and your family are involved in an accident with a driver with less liability insurance than you. This endorsement will cover the remainder.|
|OPCF 13C: Limited glass||Optional||For a lower premium, you can limit or exclude any coverage for glass damage that might've been in your policy.|
|OPCF 40: Fire and theft deductible||Optional||Adds a deductible (an amount you must pay before your insurance company chips in funds) for a theft or fire damage claim.|
Looking to get cheap car insurance quotes as a G2 driver? Here’s what you can do:
Use a site like InsuranceHotline.com to compare quotes from over 50 providers and save an average of $744* on auto insurance in Ontario.
Don’t add optional coverages to your auto insurance policy, if you don’t need them, to avoid paying more than you have to.
Avoid traffic tickets and try your best to not get into any accidents. A poor driving record leads to more expensive premiums.
Increase your standard $500 deductible to $1,000 or higher to save 5% to 10% on your insurance. Be aware, however, that should you get into an accident, a higher deductible will translate into higher out-of-pocket fees.
Paying late can result in late fees. Avoid them by paying on time.
By bundling your car and home insurances under the same provider, you can earn a significant discount on your premiums – in some cases, between 5% and 15%.
If you stick to the same insurer for several years, you can eventually get a loyalty discount from them.
Enroll in government-certified driving courses to improve your driving capabilities. This will not only keep you save but lower your premiums.
Ensure your car is as safe and secure as possible. Change your tires seasonally and add various alarm systems to your car to prevent accidents and theft.
Where you live and drive can affect your premium. If you live in an area with higher instances of car accidents and theft, your premiums will likely be higher. If you can move, consider doing so.
Every car – of every year, make and model – has its own Canadian Loss Experience Automobile Rating (CLEAR), based on factors like crash test scores, theft ratings, engine size and so on. Consider driving a vehicle that’s less expensive to insure.
Sign up for usage-based car insurance (UBI), which involves tracking your driving habits either through a third-party device attached to your vehicle or a mobile app. If you drive safely, you’ll get a cheaper premium.
Never stop driving. By driving regularly, you will build your driving record and gain experience. All of this will eventually result in much, much cheaper premiums.