Is a young driver in your household going to achieve their driver’s license in 2024? If so, congratulations, and buckle up for this next adventure!

Understanding insurance for a new driver can be overwhelming. We’ve set out to cover the basics for you so that you have this handy resource at your fingertips.

Who is considered a “young driver”?

The term “young driver” typically refers to those with the least amount of driving experience in Ontario. Their lack of experience usually results in a higher insurance premium to start.

Insurance companies typically categorize a young driver as someone 16 – 24 years of age.

When does a young driver need insurance?

It’s time to inform your insurance broker that another driver will be driving your car as soon as your driver has achieved their G1 license.

Regardless of how often your young driver will be driving your vehicle, it is important to inform your insurance broker. In fact, all drivers in the household need to be listed on all car insurance policies in the household. Insurance coverage and options vary by insurance company.

According to our partners at Economical Insurance, the “primary driver” or “principal driver” is the person who drives the vehicle most often, regardless of who actually owns it. Other drivers living in the same household will need to be listed in the policy, too — but the person who drives a specific vehicle most often should be listed as the primary driver for that vehicle.

What if my young driver has their own vehicle?

The answer to this question will depend upon whose name the vehicle is in. Whoever owns the vehicle must own the insurance policy attached to the vehicle. Click here to learn more about ownership requirements in Ontario.

From Economical Insurance, to make sure your teen has the coverage they need in the event of a collision, consider this simple breakdown of what you should do in a couple of common scenarios:

  1. You bought a car for your teen to drive, but the ownership is in your name. If the vehicle ownership is in your name, you will also need to buy the insurance policy to go with it. But since your teen is the one driving the car on a day-to-day basis, they need to be listed as the primary driver.
  2. Your teen bought their own car and the ownership is in their name. If the vehicle ownership is in your teen’s name, they’ll need to buy the insurance policy to go with it. Your teen will also need to be listed as the primary driver since they’re the ones who will be driving the car most often.

Where should you buy insurance for a young driver?

An insurance broker should be your first stop when looking for insurance. An insurance broker has access to a wide variety of insurance companies and a broker can find you the right coverage at the right price.

Click here for a resource for Ontario government-approved driving schools.

Roughley Insurance Brokers can answer any questions you have about a young driver who is going to be looking for insurance in 2024. Please reach out to our Roughley team by phone (905-576-7770) or by email insure@roughleyinsurance.com for a no-obligation assessment.