It is a great moment enjoyed by every member of the family when a young member of the family usually the son or daughter, just got a driver’s license. While getting the license could be a great thing for the G2 driver, the parent might land in some sort of difficulty if the right actions are not taken at the right time. It is, therefore, important for parents to start shopping for insurance coverage almost immediately the license is granted. This makes it possible to get affordable car insurance for G2 drivers.
There are some things that can be put in place to allow for cheap insurance rates for the G2 driver, some of which are discussed below.
What is a G2 Insurance Certificate?
Under Ontario’s graduated driver’s license system, every driver now has two steps to obtain before becoming a fully licensed G driver. The second step in the chain is the G2 license. This is between the level of G1, formerly known as a learner’s permit under the old system and a full G license.
During the time a driver carries a G1 license, they may enroll and complete a driver training program, which is a mix of classroom and in-car training. Driving schools that provide training that is approved by the Ministry of Transportation in Ontario issue certificates of completion to successful students. While G1 drivers can be listed on other drivers’ insurance policies – such as a parent, for example – there is usually no additional premium charged. It is only when the G1 driver passes the road test for G2 certification that an insurance company requires premiums for the new driver. Most insurers offer discounts for those with driver training certificates. So there is really no G2 insurance certificate. There’s just the driving school certificate, usually earned during the G1 licensing stage and used for insurance discounts when the driver reaches G2 level.
How Much Does it Cost to Take Driver’s Ed?
There are two factors to consider when evaluating the cost of driver training for a new motorist. First, there’s the cost of the training itself and second, there are the potential savings that successful completion of a driver’s ed program can provide.
The average cost for driver training in Ontario is about $650 at the time of publication. This covers certain standards for in-class and in-car training. These standards are set by the Ministry of Transportation in Ontario, and schools offering this training can receive MTO certification. This certification is important to the new driver. Drivers completing approved training are themselves certified by the driving school. Many insurance companies recognize certificates issued by approved schools and offer discounts to graduates. The potential savings are almost 10 times the cost of the training.
For example, a young male driver without driver’s ed certification will pay around $6,700 annually for an average insurance policy. The same driver with the same policy, but who have completed an MTO approved training program pays about $5,000. This $1,700 difference easily covers the cost of the initial training, and insurers generally credit a driver training certificate for three years. This brings potential savings up to $5,000.
Insurance: G2 versus G
There’s no real comparison between G2 and G licenses when it comes to car insurance. Ontario has a graduated license system that starts at the G1 level. This is what was formerly known as a learner’s permit. A G1 driver may only operate a motor vehicle in the presence of another driver who has both a full G license meeting a minimum level of driving experience. There are a number of other restrictions as well, such as available roads, speed limits and times of day a vehicle can be driven. All of these must be met as part of G1 drivers’ licensing.
A full G driver, however, has unlimited driving privileges and becomes a fully insurable motorist in the eyes of insurance companies. A G driver may own their own vehicle and be the only listed driver, meaning they bear the sole impact of the cost of insurance. Since drivers under 25 can pay $5,000 or more annually, this is much different than a G1 driver listed on a parent’s policy at no charge.
It’s hard to pinpoint the difference between G2 and G insurance costs since much depends on how a driver is listed on a policy. A G2 driver has greater freedom to operate a vehicle than a G1 driver, though still with restrictions. A G2 driver may remain an occasional driver on another driver’s policy or they may be the sole driver on their own policy. The discounts that any driver may qualify for are personal, making precise cost difficult to predict.
Can a G2 Driver Drive Without Insurance?
The quick answer is no, a G2 driver can’t operate any vehicle that’s not insured on Ontario roads. In fact, no driver at any licensing level can. Ontario requires that every vehicle on its streets and highways carries a minimum level of insurance coverage, primarily for the protection of drivers, occupants and other people involved in incidents involving a vehicle.
When you alter the question to “Can a G2 driver drive without their own car insurance policy?” then the answer changes. Many G2 drivers are named on auto insurance policies belonging to other people. The most common condition is probably the young driver who uses a parent’s vehicle and is named as a driver who regularly has access to that vehicle.
A G2 driver could also borrow someone else’s vehicle on an occasional and non-regular basis. If an accident occurred while the G2 motorist was driving, then the owner’s policy would cover the driver. When any driver operates someone else’s vehicle on a regular and recurring basis, no matter how infrequently, they should be named on the car’s policy. Failure to do so may result in denial of claims or cancellation of the policy.