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Young Canadian drivers pay some of the most expensive car insurance premiums in an already expensive country for car insurance. There’s a general perception that insurance prices drop when drivers reach the age of 25. Is there truth to this, or is it simply an insurance myth?

Insurance pricing is all about risk determination. In many cases, the only way a driver reduces their own risk is through years of trouble-free driving. The one thing young drivers haven’t got on their side is time. Affordable insurance comes soonest to those with the most experience.

The Path to Driving Experience in Canada

The age of 16 is common across Canada as the minimum for obtaining a beginner’s permit or its equivalent. Many provinces now have graduated systems, where there is more than one stage before obtaining a full licence. There are qualifying steps.

For example, in Ontario, the age of 16 is the only prerequisite for the first stage, the G1 license. A new driver completes a short written test and simple vision assessment and receives a G1 upon successful completion. They can then operate a vehicle as long as they’re accompanied by a fully licensed driver.

There is a time period before they can apply for a road test to qualify for the second level, or G2, license. While they can now operate a vehicle alone, there are still restrictions. For example, driving alone between midnight and 5 a.m. is not permitted. This is statistically one of the least safe periods in which to drive. Only after qualifying for a full G license are such restrictions lifted.

Building Auto Insurance History


Having driving experience is good, but it isn’t all a driver can do to address insurance pricing. Clean insurance history is as important as clean driving history, and it takes certain steps to establish as well. A driver doesn’t necessarily start accumulating insurance history with their beginner’s permit. Only drivers formally named on insurance policies gain this.

Typically, once a driver obtains a first-level license, a parent adds them to the family car. This starts an insurance history. Worries about high additional costs for young drivers don’t materialize at this stage. Due to the supervised nature of the conditions surrounding first-level licenses, insurance companies don’t usually charge for these drivers. That comes at the second level of licensing.

Therefore, there’s no reason that a young driver shouldn’t be named as soon as possible. Insurance history then starts at the same time as driving history.

Progressing Toward Inexpensive Insurance

From this point on, each year of clean driving earns rate reductions. These are small the first few years and grow as the driver ages. It’s true that there are larger decreases around the age of 25, but this is dependent on each case. A driver who is licensed later in life may see higher rates than others, after the age of 25.

Not every insurance company assesses young drivers the same way. Ensure the lowest premiums by shopping aggressively. Quote Finder has a car insurance calculator that searches dozens of providers for the lowest rates on any policy need. Check it out at the top of this page today.

About the Author: Robert Davis

He is an insurance content professional with vast knowledge and a special aptitude and interest in imparting insurance education. He has authored many articles on insurance.

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