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No one wants to pay more for car insurance than necessary, yet understanding how premiums get calculated is confusing at best. In Ontario, age does play a role in determining what a driver pays, but it’s not a hard and fast effect. There are only general rules, and these don’t always apply.

What affects car insurance rates?

The price of an auto insurance policy based on a number of factors. No two insurance companies in Ontario balance all these factors in the same way. In fact, companies are free to set their own rules and rates, as long as these receive approval from the Financial Services Commission of Ontario, the government service that oversees the terms of the province’s Insurance Act.

Insurance policy calculations take into account statistical information on the car model and year, geographic location and general demographics of the driver. Personal insurance and driving histories also play a role, as does the choice of insurance products and the distance the car is driven. Any of these factors can cause insurance to raise or lower in price.

What age does your auto insurance start going up?

There’s not a magic number where maturity stops being a positive factor, lowering car insurance premiums. Generally, the combination of age and incident-free driving works in a motorist’s favour until at least the age of 75. Depending on all factors, drivers could see low-cost insurance until about their 80th birthday. Much depends on that driver’s insurer. Other companies may charge more or less, depending on their underwriting rules.

How much does your insurance drop when you turn 25?

age 25



Here, too, age 25 isn’t a magic number. Several factors combine to give the appearance that it’s a milestone year, but in fact, much depends on the individual driver and the insurance company in question. A driver receiving their G1 at age 16, G2 by 17 and full G level around 18 could have 9 years of insurance history by the time they reach 25. A person who puts off getting a driver’s license until age 21 would only have four years of history. Assuming that both drivers have clean records and similar cars, the first driver may see a drop of 25 percent or more at age 25 that the other motorist does not.

As well, there’s no age 25 plateau. Rates fall each year of claims-free driving from the first year insured and they continue to do so after a driver reaches 25. While the annual savings are more modest, rates will fall into the driver’s 30s, assuming their history remains clear, and they maintain ownership of vehicles of similar insurability. Switching to a sports car from a minivan, for example, leads to premium increases.

The best way to score the lowest insurance prices uses a car insurance calculator such as the one here at Quote Finder. Give it a try today.


  1. Financial Services Commission of Ontario
  2. Insurance Bureau of Canada: How Car Insurance Premiums are Calculated
  3. FSCO: Legislation – Acts & Regulations

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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