New Driver Insurance in Ontario for First Time Drivers
Driving for the first time in Ontario is an exciting step, but it also comes with important responsibilities—one of the biggest being securing proper new driver insurance in Ontario As a young driver, you’re often faced with higher insurance premiums, making it essential to understand the factors that influence these rates and how you can save money.
Liability and Collision Coverage
When it comes to auto insurance, choosing the right coverage is crucial for both protection and cost management. As a new driver, it’s important to understand the different types of coverage available and when each might be necessary.
Liability Coverage: Why $2M is Recommended
Liability coverage is mandatory in Ontario and protects you if you’re responsible for causing injury or property damage to others in an accident. While the minimum required by law is $200,000, it is common practice to carry at least $1 million in liability coverage. At Roughley Insurance Brokers, we recommend $2 million in liability coverage due to the relatively small cost difference between $1 million and $2 million. This additional protection is especially valuable in the event of a serious accident, where damages and medical costs can quickly exceed lower limits.
While it’s technically possible to select lower liability limits, we quote a minimum of $1 million to ensure adequate protection for our clients.
Collision and Comprehensive Coverage: Do You Need Them?
Collision coverage pays for repairs to your vehicle if you’re involved in an accident, whether or not you’re at fault. Comprehensive coverage protects against non-collision events such as theft, vandalism, or damage from natural disasters.
While these coverages are generally recommended, they are mandatory if your vehicle is leased or financed, as the lender or leasing company will require the vehicle to be fully insured. However, if you drive an older vehicle or a "beater" car with limited market value, you may choose to skip collision and comprehensive coverage and opt for liability-only insurance. This can help reduce your premiums, but it’s important to weigh the cost of coverage against the potential expense of repairing or replacing your vehicle in the event of an accident or other damage.
Work with an Independent Insurance Broker
In today’s digital age, there are many online brokerages and direct agents offering quick and easy quotes. However, when it comes to securing the best insurance for your unique needs, working with an independent insurance broker is the smarter choice.
Unlike direct agents who represent a single company, an independent broker works with multiple insurance carriers. This means they can compare rates and coverage options across different insurers to ensure you get the best protection at the most competitive price. Additionally, some larger online brokerages may prioritize certain carriers, limiting your options. An independent broker, on the other hand, works solely for you and has no loyalty to any specific insurance company, making sure your needs come first.
At Roughley Insurance Brokers, we believe in providing personalized service to find the right coverage for you—not just the most convenient option. Let us work for you to secure the best rates and coverage for your situation.
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Roughley commercial clients may qualify for special discounts on your home & auto.
Connect in Oshawa
- 1000 Simcoe Street North Oshawa, Ontario L1G 4W4
- 905.576.7770
- insure@roughleyinsurance.com
Contact in Bowmanville
- 31 King Street West Bowmanville, Ontario L1C 1R2
- 905.697.4257
- insurebowmanville@roughleyinsurance.com
Graduated Licensing System: G1, G2, and G Licenses
Ontario’s graduated licensing system consists of three stages—G1, G2, and the full G license. Each stage comes with different levels of driving freedom and insurance considerations:
G1 License
You must always be accompanied by a fully licensed driver. Insurance doesn’t apply directly to you since you can’t drive alone, but being listed as a secondary driver on someone else’s policy could raise their premiums.
G2 License
Once you’re driving unsupervised, you’ll need your own insurance or be listed as the principal operator of a vehicle. At this stage, premiums are often higher due to limited experience.
Full G License
Upon obtaining your full G license, your premiums may decrease if you’ve maintained a clean driving record during the G1 and G2 stages.
How to Reduce Your Insurance Premium in Ontario
The following are key considerations for new drivers in Ontario and provide practical tips for lowering your insurance premiums.
Choose the Right Car
One of the most significant factors affecting your insurance premiums is the type of car you drive. Insurers look at factors like:
- Make and model: Sporty, high-performance cars typically come with higher premiums, while more practical models like sedans often cost less.
- Vehicle age: While older cars may seem cheaper to insure, newer models with advanced safety features can actually lower your premiums.
- Safety features: Cars equipped with anti-lock brakes, airbags, and automatic emergency braking can qualify for insurance discounts. You can also use the Insurance Bureau of Canada’s "How Cars Measure Up" tool to compare insurance costs for different vehicles.
Build Experience as a Secondary Driver
Although Ontario’s insurance rules require a one-to-one ratio of principal operators to vehicles, meaning you cannot simply be “added to a parent’s policy,” you can still gain experience as a secondary or occasional driver on a parent’s or partner’s car. Driving in this capacity can help you develop good habits and maintain a clean record, which will benefit you when you eventually become a principal driver.
Get Schooled and Save
Completing a driver’s education course that’s approved by the Ministry of Transportation of Ontario (MTO) can help you become a safer driver and earn a discount on your insurance. Many insurers offer discounts for drivers who complete certified training programs.
Telematics: Pay Based on How You Drive
Telematics programs, offered by many insurers, track your driving habits through an app or device installed in your car. Factors such as speed, braking, acceleration, and the times of day you drive are monitored. Safe drivers can qualify for discounts of up to 30% on their insurance premiums, making this a great option for responsible new drivers.
Location Matters
Where you live can significantly affect your insurance premiums. Drivers in densely populated urban areas like Toronto face higher premiums due to the increased risk of accidents and vehicle theft. Conversely, living in a rural or suburban area often leads to lower insurance rates. If you’re moving or considering relocation, keep in mind that location plays a major role in your insurance costs.
Increase Your Deductible to Save
One easy way to lower your monthly insurance premiums is by increasing your deductible—the amount you agree to pay out of pocket before your insurance kicks in. For example, opting for a $1,000 deductible instead of the standard $500 can lead to lower monthly premiums. Just be sure that the higher deductible fits within your budget in the event you need to file a claim.
The Impact of Driving History and Record
Your driving record is one of the biggest factors influencing your insurance premiums. Accidents typically stay on your record for six years, and in some cases longer with certain insurance carriers. Tickets, on the other hand, usually remain on your record for three years. However, it’s important to note that automated speed trap tickets do not affect your insurance rates. Maintaining a clean record free from accidents and tickets is key to reducing your premiums over time.
Be Aware of Penalties and Infractions
New drivers need to be aware that infractions like speeding, driving under the influence, or getting into accidents can cause insurance premiums to spike. In some cases, premiums can even double or triple after a single violation. Driving safely and avoiding penalties is essential to keeping insurance costs manageable.
Our team of trusted advisors at Roughley Insurance works for you. Our insurance brokers compare auto insurance quotes across all major insurance companies in Ontario to find you the right coverage at the best price. We advocate for our clients, providing guidance based on your specific needs, and ensuring your peace of mind.
Comparing Insurance Companies
When looking for the right auto insurance policy, it’s essential to compare multiple insurance companies and their offerings. This can be done by requesting a quote online or consulting one of our insurance brokers. When we compare insurance companies, we consider the following criteria:
- Coverage: Ensure the policy covers all the necessary aspects of your condo insurance needs such as the building, personal property, and liability.
- Price: Compare the premiums and deductibles to ensure they are reasonable concerning the coverage provided.
- Claims Process: Look for a hassle-free and straightforward claims process, as it determines how smoothly and quickly your claims will be settled.
- Customer Service: A responsive and accessible customer service team is vital in addressing any concerns or questions that may arise during the policy period.
Take Control of Your Insurance as a New Driver
Navigating the world of auto insurance as a new driver in Ontario can seem daunting, but with the right knowledge, you can take steps to lower your premiums and make informed choices. From selecting the right vehicle and completing driver’s education to exploring telematics and managing your coverage options, there are plenty of ways to save while ensuring you’re protected on the road.
If you’re a new driver looking for the right insurance policy, reach out to Roughley Insurance Brokers today. We’ll help you find the coverage that fits your needs and budget.
Frequently Asked Questions
Insurance companies consider several factors when pricing policies for new drivers. Age, location, type of vehicle, and driving record all play a role. Younger drivers typically face higher premiums due to their lack of experience.
Completing an approved driver’s education course can sometimes lower costs. The make and model of car also impacts rates, with sports cars and luxury vehicles costing more to insure.
Monthly premiums for new drivers in Canada vary widely. Rates can range from $200 to $500 per month on average. Young drivers under 25 often pay the highest premiums.
Rates tend to be lower in rural areas compared to major cities. Factors like the driver’s age, vehicle type, and coverage level significantly affect monthly costs.
Several insurance providers offer competitive rates for new drivers. Belairdirect, Sonnet, and TD Insurance frequently have favorable premiums. Local insurance brokers can help compare quotes from multiple companies.
It’s important to get quotes from at least 3-5 insurers. Rates can vary significantly between providers for the same coverage.
Many insurers offer discounts to help new drivers save money. Common discounts include good student rewards for maintaining high grades. Some companies provide usage-based insurance programs that track driving habits.
Bundling auto insurance with other policies like renters or home insurance can lead to savings. Taking defensive driving courses may also qualify for discounts with certain providers.
In Canada, all drivers must have third-party liability coverage. The minimum amount varies by province, ranging from $200,000 to $500,000. Accident benefits coverage is also mandatory in most provinces.
Some regions require additional coverage like uninsured automobile protection. New drivers should check their specific provincial requirements.
New drivers in Ontario can take several steps to find affordable insurance. Comparing quotes from multiple providers is crucial. Opting for a used, modest vehicle rather than a new or sporty car can lower premiums.
Increasing deductibles can reduce monthly costs. Taking advantage of available discounts, such as those for good students or completing driver’s education, can also help minimize expenses.
