Getting Car Insurance As a New Driver

Published: September 14, 2015

Updated: May 15, 2018

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Personal car insurance for a new driver can be split into two different types, coverage for under 25s and coverage for over 25s. If you are after more affordable premiums then it is definitely better to be in the former group as young drivers are subject to among the highest average rates in Ontario.

Whatever age group you enter into as a new driver, dollar for dollar you are likely to pay more for your annual insurance than someone else of a similar age. For example, if you are a 42-year old male new driver with a blue 2014 Honda Civic then you will pay more than another 42-year old male with the same car (providing their record is clean). New drivers pay the extra premium because of their experience, or lack thereof.

Insurance companies statistically assume more risk by covering an inexperienced driver who is more likely to be in an accident.

Car Insurance for new drivers under 25

Teenagers are subject to some of the highest auto insurance prices in the market and studies in Ontario have shown that insurance companies give higher average prices to everyone in the 16-24 age group. While this seems like discrimination, it actually appears that statistics prove insurer’s right as this age group presents a higher risk.

In Canada 16-24 year-olds are responsible for nearly 25 per cent of all accidents that result in injury or death, a majority number that is startling considering this age group only makes up 13 per cent of all drivers on the road.

It you are a new driver in this age group it is better to try to be an added name on the policy of a parent, as this will keep the cost of your coverage relatively low. However, that may not be possible for some older under 25 year-olds and so they will have to go it alone. A 24-year old is going to get cheaper rates than an 18 year old for example, but will still be made to pay more for their coverage than they would if they were older.

Car insurance for new drivers over 25

If you are aged 25 or older then things may change slightly in your favor, although you will still be expected to pay more than the average premium for the age group. It is not a case of the older you are the cheaper it will get, but a 35-year old may be considered less of a risk compared to a 27-year old in the eyes of some insurance companies.

That’s because insurers may perceive maturity with age and think that you are less of a risk of accident.

As always, it is worth shopping around for the best quote, while it is always the case that other factors can help you get more affordable premiums, whatever your age or driving status is. New drivers will get varying rates depending their car, its use, its chance of being stolen, and other key criteria that insurance companies employ across the industry.