In This Article
- What Changes When a New Driver Gets Licensed
- How G1, G2 and G Licensing Can Affect Insurance
- Driver Training Can Help
- Occasional Driver or Principal Driver: Why Classification Matters
- New Driver Car Insurance Savings in Ottawa: Discounts to Ask About
- Telematics and the Car Itself
- Comparing New Driver Car Insurance in Ottawa
- Frequently Asked Questions
Adding a new driver to the household doesn’t affect your car insurance the same way at every stage of Ontario’s graduated licensing system.
When your child gets a G1 and will be driving your vehicles, let your insurer or broker know. There generally isn’t an additional premium for a G1 driver, but the insurer should still be aware that the newly licensed driver will be operating the vehicle.
The bigger insurance change typically comes when the driver obtains a G2. At that point, the new driver can drive independently and will generally begin to affect the household’s premium. Driver training, whether they’re an occasional or principal driver, the vehicle they use and the insurer’s own rating rules can all influence the cost.
This article looks at those factors and the practical ways Ottawa families can manage the cost of insuring a new driver.
What Changes When a New Driver Gets Licensed
There isn’t one month of the year when insurance premiums suddenly increase for young drivers. The timing depends on when the driver reaches a new licensing stage, how they’re using the household vehicles and when those changes are reported to the insurer.
A G1 driver must drive with a qualified accompanying driver and is still in the learning stage. While ONA doesn’t generally see an additional premium charged simply because a household member has obtained a G1, you should still tell your insurer or broker if the new driver will operate your vehicles.
Once that driver receives a G2, the situation changes. They can now drive independently, and the insurer will need to determine how they’re rated on the household policy.
Insurers consider factors such as driving experience, driving record, vehicle use, the vehicle being driven and where the vehicle is principally kept. A newly licensed G2 driver has limited driving history, so there is less experience for an insurer to assess.
There isn’t a standard amount by which the premium will change. The impact depends on the driver, the vehicle and the insurer’s rating rules.
How G1, G2 and G Licensing Can Affect Insurance
Ontario uses a graduated licensing system that moves new drivers through G1 and G2 before they receive a full G licence.
In most cases, a new driver holds a G1 for 12 months before taking the first road test. Completing a government-approved beginner driver education course can reduce that waiting period to eight months. After receiving a G2, the driver generally needs another 12 months of driving experience before taking the G road test.
From an insurance perspective, the stages aren’t priced identically.
A G1 driver should be reported to your insurer if they’ll be operating your vehicles, even though there is generally no additional premium at that stage.
Once the driver obtains a G2, they can drive without an accompanying experienced driver. This is typically when the new driver begins to have a direct impact on the household’s insurance premium.
Moving from G2 to a full G licence can also affect how a driver is rated, but families shouldn’t assume that reaching a particular licensing stage automatically produces a fixed percentage reduction. Insurers use their own approved rating rules, and the result will depend on the driver and policy.
What continues to matter over time is the driver’s experience and record. Avoiding convictions and at-fault accidents and building a longer driving history can help improve the driver’s insurance position as they gain experience.
Driver Training Can Help
A government-approved beginner driver education course provides one immediate licensing benefit: it allows a G1 driver to take the first road test after eight months instead of waiting the usual 12 months.
Driver training may also help with insurance once the driver reaches the stage where they’re being rated on the policy.
Not every insurer provides the same driver-training discount, and families shouldn’t assume there is a standard percentage. Where a discount is available, the amount can depend on the insurer’s rating system, the vehicle being insured and other factors, including the driver’s age.
To receive the applicable treatment, the driver may need proof that they successfully completed an approved course and obtained their driver education certificate.
Before choosing a course primarily for insurance purposes, ask your broker whether the insurers available to your household recognize the program and how driver training is treated under their current rating rules.
Occasional Driver or Principal Driver: Why Classification Matters
If your child obtains a driver’s licence and will operate one of your vehicles, tell your insurer or broker. Don’t wait until they’re driving the vehicle regularly. Even occasional driving should be disclosed so the insurer has accurate information about who may operate the vehicles on the policy.
Once the driver reaches G2 and begins affecting the premium, how they use the vehicle becomes important.
A driver who occasionally uses a vehicle that is primarily driven by a parent may be listed differently from a driver who is the main operator of their own vehicle.
| Situation | How the driver may be classified |
| Teen occasionally uses a family vehicle primarily driven by a parent | Occasional driver |
| Teen is the primary user of a vehicle | Principal driver |
| Student lives away from home and has limited access to the vehicle | May qualify for different treatment depending on the insurer |
The classification needs to reflect the actual use of the vehicle. You shouldn’t list a new driver as occasional simply because that classification produces a lower premium if they’re actually the principal operator.
Tell your broker if the driving arrangement changes. For example, a child who initially borrows a parent’s car occasionally may later begin taking one vehicle to school or work most days.
If a young driver already has a ticket or an at-fault claim, the available options may also change. In some situations, high-risk car insurance may be available while the driver’s record improves.
Discounts That May Help Lower a New Driver’s Insurance Premium
Discount availability varies by insurer. Rather than assuming a particular discount or percentage will apply, ask your broker which options are available under the insurers being considered for your household.
Possible discounts can include:
| Discount or rating consideration | What to know |
| Driver training | Some insurers provide a discount or different rating treatment for new drivers who complete a recognized driver-training program |
| Winter tires | Ontario auto insurers must offer a winter-tire discount, although the amount and documentation requirements vary |
| Multi-vehicle | Some insurers provide a discount when multiple vehicles are insured together |
| Multi-policy | Insuring home and auto with the same insurer may qualify for a discount |
| Student or away-from-home | Some insurers offer different treatment for eligible students, including students living away from home for part of the year |
| Low annual mileage | How much a vehicle is driven can affect its rating, and some insurers offer options for lower-mileage vehicles |
If your household is adding another vehicle or already has home insurance with the same insurer, ask whether multi-vehicle or multi-policy savings are available. You can also read more about the potential advantages in our article on the benefits of bundling insurance.
The winter-tire discount is particularly relevant for Ottawa drivers. Insurers are required to offer one, but each insurer determines the amount and what proof it requires.
Discounts are only one part of the premium. The driver’s experience, vehicle, driving record, usage and the insurer’s rating system can have a larger effect on the final price.
Telematics and the Car Itself
Two other factors can affect a new driver’s premium: how they drive and what they drive.
One option to ask about is usage-based insurance or telematics. These programs can use information such as kilometres driven and driving behaviour as part of the insurance pricing process. Programs differ between insurers, so understand what information is collected and how it can affect the premium before enrolling.
For a young driver who uses the vehicle infrequently, it may also be worth asking whether the insurer has a low-mileage or usage-based option that suits the household’s driving pattern.
The vehicle itself matters too. Insurers consider factors associated with the vehicle, including repair costs, theft experience and claims history for that type of vehicle.
If you’re buying a vehicle that will be driven by your teenager, get insurance quotes before purchasing it. Two vehicles with similar purchase prices can still have very different insurance premiums.
The amount a vehicle is driven also matters. Insurers consider annual kilometres and whether the vehicle is used to commute to work or school when determining rates.
Comparing New Driver Car Insurance in Ottawa
Auto insurers don’t all rate the same new driver in exactly the same way. The treatment of driver training, occasional drivers, vehicle characteristics, telematics programs and other discounts can differ between insurers.
That makes it worthwhile to compare options when a child moves to a G2, when you’re adding another vehicle or when the household policy comes up for renewal.
An independent brokerage can compare available insurers based on your household’s actual situation. You can learn more about that process on our Ottawa car insurance page.
Shopping around won’t change the driver’s actual experience or record. A newly licensed G2 driver still has limited driving history, regardless of insurer. But different insurers may price that risk differently.
Adding a new driver is also a good time to review the household’s broader personal insurance. Depending on the insurer, keeping home and auto policies together may qualify you for a multi-policy discount.
As the driver builds experience and maintains a clean record, their insurance options can change. Our experienced driver insurance page explains more about coverage for drivers with an established history.
Frequently Asked Questions
What is the cheapest way to insure a new driver?
There isn’t one cheapest arrangement for every new driver. If the new driver genuinely uses a family vehicle only occasionally, listing them as an occasional driver may cost less than having them as the principal driver of a vehicle. Driver training, the vehicle they drive, available discounts and the insurer’s rating rules can also affect the premium. The policy should always reflect how the vehicle is actually being used.
How much does a new driver pay for insurance in Ontario?
There is no single figure. The premium depends on factors such as the driver’s licence level and experience, driving record, vehicle, location, how the vehicle is used and the coverage selected. A quote based on the driver and household’s actual circumstances is more useful than a provincial average.
Do I have to add my child to my car insurance in Ontario?
If your child obtains a licence and will operate your vehicles, tell your insurer or broker. This applies even if they will only drive occasionally. A G1 driver generally does not add premium while they’re still in the learner stage, but the insurer should still be told that they may operate the vehicle. Once the driver receives a G2, they will generally begin to affect the household premium and should be rated according to how the vehicles are actually used.
How much will my insurance go up when I add my 16-year-old child?
There isn’t a standard increase. The impact depends on the driver’s licence level, whether they’re an occasional or principal driver, the vehicle they’ll use, the coverage on the policy and the insurer’s rating rules. A G1 driver generally doesn’t add premium, while the larger insurance impact typically begins once the driver receives a G2. Your broker can compare how available insurers would rate your household.
Does driver training lower car insurance for a new driver?
It can. Some insurers provide a discount or different rating treatment for a new driver who has successfully completed a recognized driver-training program, but the amount isn’t the same across all insurers. The result can also depend on factors such as the vehicle’s rating and the driver’s age. An approved beginner driver education course also allows a G1 driver to take the first road test after eight months instead of 12.
What is the best way to insure a teenage driver?
Start by telling your insurer or broker as soon as your licensed child will be operating the household vehicles. Once they reach G2, make sure they’re classified according to how they actually use the vehicle. Driver training, choosing an appropriate vehicle, maintaining a clean driving record and comparing insurers can all affect the premium over time.
What is the most affordable car insurance option in Ottawa?
There is no single insurer or policy that will be the least expensive for every new driver in Ottawa. Pricing varies based on the driver, vehicle, usage, location, coverage and each insurer’s rating rules. Comparing suitable insurers can help identify the most competitive option for your household without relying on a generic new-driver price.
Our brokers can talk through the options for insuring a young driver, including when a separate young drivers insurance policy may make sense compared with keeping the driver on the family policy. If you’re adding a new driver in Ottawa, get a free quote and we can compare the options for your household.
We serve Ottawa, Manotick, Almonte, Russell and Orleans. See our Ottawa insurance brokers page for local contact details.
