How Much Does It Cost to Insure a G2 Driver?

Are you a new driver? If you’ve secured your G2 license for the first time, congrats! It’s a great first step to independence or, if you’re an adult who’s just now learning how to drive, a great first step to improved accessibility and convenience! Owning a car is a huge responsibility though, and there are a lot of costs that go with it, including car payments or loans, maintenance and servicing, insurance, and so on.

There’s a careful, and often difficult-to-understand science behind trying to find great rates while also securing satisfactory coverage. For many new drivers, especially younger drivers, the insurance world is far out of reach and, frankly, rather complex – not something that anyone but a broker would be wanting to spend all day doing. That’s why Excalibur is here: if you’re wondering how much it might cost you to purchase car insurance with a G2 license, we’re here to help you.

How do insurers calculate the cost of insurance, anyway?

While all insurers may use the same characteristics of a driver and their vehicle to calculate insurance, different companies may have different statistics and/or weigh variables differently. Some companies may put more weight on a person’s age, whereas others might put more weight on someone’s gender. It’s really all down to that individual company, but what you can expect is that insurers will judge the cost of your insurance (as premiums) by looking at and analyzing these variables:

• Your car: its make, model, condition, age, etc. Modifications may be factored into this as well, and not all modifications are insurable. Generally, the more expensive the car would be to replace entirely, the more your insurance will cost you. For older vehicles that might be more costly to repair than they are worth, it might be wiser to drop your collision/comprehensive.
• Your location. Where you live and where you drive most often is taken into account when determining your rates; crime rates (theft likelihood), natural disasters, population density, etc. all affect your chances of being involved in an accident.
• How often you drive. Sometimes insurers will reward low mileage drivers with a discount, but the threshold for that discount is very low – usually at around 11,000km/year. The more you drive, the likelier you are to be involved in an accident.
• Your gender and age. Yes, your demographics are included in the cost of your insurance as well. Younger men tend to see the highest rates for insurance since they are the ones who are “statistically” most likely to be involved in accidents, but younger drivers – both men and women – generally tend to pay more for their insurance. Your insurance rates may decrease with age and are usually the highest below the age of 25.
• Your driving record. If you have been involved in a lot of at-fault incidents, received multiple infractions, etc., you might be placed in the high-risk category. Hopefully this isn’t the case for a brand-new driver.
• Your coverage amount, limits, and deductible. How much coverage you purchase will affect your costs as well, especially if you choose the highest available limit for each. A higher deductible can negate this, but be sure it’s an amount that you’re willing to pay out-of-pocket if you ever do get into an accident and must submit a claim.

How much does auto insurance for G2 drivers cost?

As a G2 driver, you aren’t fully licensed and it is therefore assumed you will be a newer driver. As driving experience has a huge influence on how much you’ll pay for your auto insurance, you can expect it to be much higher than if you had your full license and multiple years of driving under your belt. A premium charge may be applied to your insurance. G2 drivers have more privileges than G1 drivers, but they’ll still be looking at an average cost of about $2,400/year for their insurance, which equates to around $200 a month. This is 25% up from the average cost of auto insurance in Ontario. Depending on the insurance company, you may even pay up to 50% more than the average due to your inexperience.

Note that all G2 drivers who reside in your household and are able to drive a vehicle must be added to your auto insurance policy.

Why is insurance for G2 drivers so much more expensive?

Because, assuming you are a new driver, you have much less experience being behind the wheel and therefore are assumed to have a higher risk profile. For new drivers, the main criteria surrounding rate calculation is how much experience that individual has when driving. Newer drivers with fewer hours behind the wheel are more prone to accidents, and they are especially less prepared to handle unexpected events, including animals crossing roads, cars stopping suddenly, etc.

For many insurance companies, newer drivers can be classed as high risk. High risk drivers will see higher insurance premiums. In order to offset the financial risks that a high risk driver presents, car insurance companies will need to charge more.

Fortunately, it isn’t forever! Once you carry a G2 license for the mandated period, you’ll be able to upgrade to your full G license. If you’re still under the age of 25, you still may see increased rates, but this will start to go down with time and experience.

TLDR; G2 drivers will pay more for their car insurance in Ontario, but it is not a permanent thing and will start to decrease once you upgrade your license and gain experience behind the wheel.

How do I decrease costs as a G2 driver?

There’s a few ways to decrease your rates as a G2 driver. So long as you receive no chargeable convictions or are involved in any at-fault accidents upon entering into your G2 license, you may receive a reduction. On top of that, if you stay claims-free and receive no tickets upon entering your Class G License, you may receive up to a 10% rate reduction.

You can also receive reductions for participating in a driver’s education course. Make sure to confirm with your provider which programs will qualify you for a discount.

If you are a student between the ages of 16-25 and have a “B” average on your grades, you may also qualify for a good student discount.

You may also:

• Maintain a clean driving record
• Purchase a vehicle with insurance in mind – i.e., a car with a good safety rating that is relatively inexpensive to repair
• Get insured under a parents’ policy

Ask an Excalibur Defender about what potential auto insurance discounts you may qualify for. Each company offers different options, so be sure to clarify with them what the best ways are to reduce your rates. We also offer young driver’s auto insurance to help you save money.

Other than that, all you can really do is bide your time. Your rates will decrease as you age and gain experience (so long as you remain claims-free, as any at-fault incidents and accumulation of moving violation tickets will increase your rates again.)

Driving and insurance are both new experiences, so it’s important to educate yourself on how they both work before you get out there on the road. The G1, G2, and G progression of Ontario’s graduated driver’s licensing system is an exciting process! Operating a several thousand-pound vehicle with the potential to severely injure is a huge responsibility! Be safe and stay informed!