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How much does a driver’s training course actually save on car insurance?

August 13, 2014

I have often been asked this question by people, “Should I enroll my child in a driver’s training school and how much would it save them on their car insurance?” We have received many e-mails from our newsletter subscribers asking this also, so I did a bit of comparing to put it into actual numbers.

I used a 17-year-old male driver who lives in Toronto as a profile to see what the difference in their premium would be with driver’s training and without driver’s training. I used an older vehicle (2003 Honda) figuring that a young driver would not be buying a brand new car. The coverage that I used was $1 million liability, $500 deductible on collision, and $500 deductible on comprehensive.

The lowest rate that I could find was $5,181 per year for this driver with driver’s training. Without driver’s training, the lowest rate that I could find was $6,870 per year.

The difference was $1,689 per year. The one time cost of a driver’s training school is on average about $600.

A lot of the insurance companies that I have worked for will credit a new driver for having driver’s training for three years.

The insurance savings over three years would total $5,067 for a $600 investment. This number is an approximation since other factors are taken into account over the three years (rate increases, changes in driving record, etc.), so it sure looks like the investment in driver’s training pays off financially.

Approved Driver’s Training

Keep in mind when choosing a driving school that not all driving schools are accepted by insurance companies.

Look for a school that has been approved by the Ministry of Transportation in your province. An approved school is a requirement that most insurance companies have in order to provide the reduced rate. These approved courses contain hours of in-class and in-car training.

You can find a list of approved schools on most provincial Ministry of Transportation websites. See below for quick links to your province’s list of approved driving schools or Ministry of Transportation website.

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  • Shari Nelson

    Who puts collision coverage on a ten-year-old car? The price sounds really high because very few parents, I suspect, would put collision on a car of that age. If it gets into an accident, the car would be written off anyway. It just doesn’t make good economic sense.

  • http://www.insurancehotline.com/ InsuranceHotline.com


    With the extreme weather that Canada has experienced over the last couple of years, insurance companies claims expenses have increased dramatically. This is the reason for the increase in home premiums.

  • Bruce

    A 50% increase over 2 years? Really? So…when we have a ‘nice’ Winter, they’ll be reduced…?

  • JIM


  • Maco

    The claims made in this article is simply NOT true, a driver’s training course will NOT decrease the cost of your auto insurance. In fact, it will have the opposite effect-, I know from first hand experience! Don’t waste your time, money and energy, especially if you’re a new immigrant!
    8 8

  • Kevin Smythe

    Jim – learn how your “caps lock” key works. Come back when you’ve figured it out.

  • Kevin Smythe

    I think you know the answer to that one, Bruce.

  • Deshean Scott-Green

    Do all driving schools (accepted by the Ministry of Transportation) lower insurance rates at the same degree or will some give you bigger or lesser cuts?

  • Glen59

    Please Maco; don’t make such off handed negative comments, without first becoming educated on the subject. Depending on the status of the driver, experience, vehicle type, intended use of the vehicle; a new driver can save up to as much as 33 percent! Those are the facts!
    Secondly; to miss out on education that serves as a “basic foundation” to driving is a HUGE mistake. One that will be discovered quickly in a hospital or cemetery!

  • Maco

    No they are NOT and I’m speaking from from first hand experience, so don’t come here and tell me about first educating myself on the subject, when you are the one that needs it!!!

  • Laureen Rae Hanlon

    Big communist Cash Grab — that’s all that is. Get us coming and going. I am a professional driver who took the time to provide the training for him; he has been driving now for two years accident and ticket free and still this bullshit!!

  • sauron5212

    Due, calm down. What he is saying is true. Insurance companies are a money grab but it’s all based on where you go and what they decide could be a bigger liability. I’m piggybanki9ng off my moms insurance and I get a lower premium simply because she hasn’t been at fault for so long its not even relevant. You get 10% off insurance (I believe) Just for completing. That’s 10% off what you would normally pay. Everyone’s is different. Because of the fact that you are from a different country, they see a higher possibility in you doing something. Not that they’re right about that but its what they do.

  • InsuranceHotline

    Correct. Only driving schools approved by the ministry of transportation (listed on their website) will be accepted for insurance credit.

  • rethca

    Are some driving schools more favored that others in terms of the discounts given on insurance? For example Young Drivers claims that their students get they get the best discounts.

  • InsuranceHotline

    each insurance company has their own rules and rates. You are best to ask your insurance broker to find the best company for you.