Car insurance rates for new drivers in Ontario tend to be higher than for those with more experience. The province has some of the highest insurance premiums in Canada, and new drivers, particularly young ones, face especially high costs due to their perceived risk. There are several factors that influence insurance rates for new drivers in Ontario:
- Age and Experience: New drivers, especially those under 25, typically pay the highest rates. This is because statistically, younger drivers are involved in more accidents than older, more experienced drivers.
- Gender: Historically, young male drivers have faced higher insurance premiums than young female drivers due to accident statistics.
- Location: Where you live in Ontario can have a big impact on your insurance premiums. For instance, rates in densely populated cities like Toronto might be higher than in rural areas.
- Type of Car: A new, expensive sports car will cost more to insure than an older, more modest vehicle. Safety features, the likelihood of theft, and repair costs all play roles in determining rates.
- Driving Record: Even if you’re a new driver, any infractions or accidents on your record will increase your rates.
- Coverage: There are different types of insurance coverages available, and the more coverage you get, the more you’ll pay. At a minimum, you’ll need to have third-party liability coverage, but there’s also collision, comprehensive, and other optional coverages.
- Deductible: The amount you’re willing to pay out-of-pocket before the insurance covers the rest can impact your premiums. A higher deductible usually means lower premiums, but you’ll pay more in the event of a claim.
- Discounts: There are several discounts available for drivers in Ontario, such as multi-car discounts, winter tire discounts, and discounts for completing a driver’s education course.
Average Rates: New drivers in Ontario could expect to pay anywhere from CAD $3,000 to over CAD $5,000 annually, depending on the factors listed above. However, these figures change over time due to regulatory changes, claims experiences, and other factors.
How much is car insurance per month in Ontario for new drivers?
Numbers are based on the relative size and demographics of the cities, as well as typical risk factors associated with urban versus rural areas. These numbers would vary depending on countless individual factors.
Example Driver Profile:
- Age: 23
- Gender: Male
- Vehicle: 2018 Honda Civic
- Coverage: Standard (Third-party liability, collision, comprehensive)
- Deductible: CAD $500
- Driving Record: Clean (no accidents or tickets)
- Toronto: CAD $450
- Ottawa: CAD $380
- Mississauga: CAD $420
- Brampton: CAD $460
- Hamilton: CAD $400
- London: CAD $375
- Markham: CAD $410
- Vaughan: CAD $415
- Kitchener: CAD $385
- Windsor: CAD $370
- Richmond Hill: CAD $410
- Oakville: CAD $405
- Burlington: CAD $395
- Greater Sudbury: CAD $360
- Oshawa: CAD $395
- Barrie: CAD $390
- St. Catharines: CAD $385
- Cambridge: CAD $380
- Kingston: CAD $375
- Whitby: CAD $390
- Guelph: CAD $385
- Ajax: CAD $395
- Thunder Bay: CAD $365
- Chatham-Kent: CAD $370
- Waterloo: CAD $385
- Brantford: CAD $380
- Pickering: CAD $395
- Niagara Falls: CAD $380
- Peterborough: CAD $375
- Milton: CAD $400
- Belleville: CAD $365
- Sarnia: CAD $370
- Newmarket: CAD $390
- Sault Ste. Marie: CAD $360
- Norfolk County: CAD $375
- Halton Hills: CAD $390
- Welland: CAD $375
- North Bay: CAD $360
- Cornwall: CAD $355
- Caledon: CAD $385
- Bowmanville: CAD $375
- Stratford: CAD $365
- Orillia: CAD $370
- Fort Erie: CAD $365
- Collingwood: CAD $360
- Simcoe: CAD $375
- Brockville: CAD $360
- Georgetown: CAD $390
- Timmins: CAD $350
- Orangeville: CAD $380
- Keswick: CAD $375
- St. Thomas: CAD $365
- Woodstock: CAD $370
- Midland: CAD $365
- Bracebridge: CAD $360
- Uxbridge: CAD $380
- Cobourg: CAD $365
- Lindsay: CAD $365
- Pembroke: CAD $355
- Leamington: CAD $365
How to get cheap insurance in Ontario for new drivers?
There are several strategies and steps that new drivers can take to find the most affordable rates:
- Driver’s Education: Enroll in and complete a recognized driver’s education course. Most insurance companies offer discounts to those who have taken formal driving lessons, as it’s believed that structured learning reduces the risk of accidents.
- Shop Around: Rates can vary significantly among insurers. Use online tools, brokers, or direct inquiries to get quotes from multiple insurance companies to ensure you’re getting the best rate.
- Bundle Insurance: If you have other insurance policies, such as home or renters insurance, consider bundling them with your auto insurance. Many companies offer discounts for having multiple policies with them.
- Choose Your Car Wisely: Some cars are more expensive to insure than others. Research the cars that are cheaper to insure, and avoid high-end sports cars or vehicles that are frequently stolen.
- Increase Deductibles: If you can afford to pay a higher deductible in the event of a claim, you can reduce your premium. However, always ensure that you can afford the deductible you set.
- Maintain a Clean Driving Record: Any convictions, tickets, or at-fault accidents will likely increase your insurance premium. Drive responsibly and obey all traffic rules.
- Ask for Discounts: Inquire about any potential discounts, such as:
- Winter Tire Discount: For installing winter tires during the snowy season.
- Good Student Discount: For students who maintain a certain grade average.
- Telematics or UBI (Usage-Based Insurance): Some companies offer discounts for allowing them to monitor your driving habits via a telematic device or app.
- Limit Coverage on Older Cars: If you have an older car, consider dropping collision or comprehensive coverage if the potential payout in the event of a total loss would not be much more than the premium.
- Review Your Coverage Regularly: As you gain more driving experience and maintain a clean record, your rates may decrease. Review your policy at least annually to see if you qualify for lower rates.
- Consider Usage-based Insurance (UBI): Some insurance companies offer policies based on how much you drive and how you drive. If you’re a low-mileage driver or drive particularly safely, UBI might offer savings.
- Live Outside the City: Urban areas typically have higher rates due to increased risks of theft and collisions. If you have the flexibility to choose where you live, residing in a more rural area can reduce your premiums.
- Pay Annually Instead of Monthly: Some insurers may offer a discount if you pay your premium as an annual lump sum rather than monthly.
- Join a Group: Some companies offer group discounts for members of certain organizations, alumni groups, or professional associations. Check if you’re eligible for any group rates.
Best Cars to Insure For New Drivers in Ontario
Selecting an appropriate car can make a significant difference in insurance premiums, especially for new drivers. Here are some of the best cars to insure for new drivers, along with average insurance rates in Ontario:
- Honda Civic
- Why: It’s a reliable and safe compact car with many features that can reduce the risk of accidents.
- Fictional Ontario Rate: CAD $3,400/year
- Toyota Corolla
- Why: The Corolla has a long-standing reputation for reliability and safety. It’s not overly powerful, which can help keep rates down.
- Fictional Ontario Rate: CAD $3,350/year
- Hyundai Elantra
- Why: Another compact car with good safety ratings. Hyundai’s are also often less expensive to repair.
- Fictional Ontario Rate: CAD $3,300/year
- Why: It’s a safe compact car with efficient fuel consumption and isn’t considered a high-risk vehicle.
- Fictional Ontario Rate: CAD $3,380/year
- Volkswagen Golf
- Why: Offers good safety features and isn’t sporty enough to increase the risk perception among insurers.
- Fictional Ontario Rate: CAD $3,400/year
- Ford Focus
- Why: Compact and comes with many safety features. Its modest performance also keeps insurance costs down.
- Fictional Ontario Rate: CAD $3,370/year
- Chevrolet Cruze
- Why: It’s not overly powerful and has a good safety rating. Repairs are also generally affordable.
- Fictional Ontario Rate: CAD $3,340/year
- Subaru Impreza
- Why: All-wheel drive and excellent safety features make this a good choice. However, avoid sportier WRX or STI models, as they will be more expensive.
- Fictional Ontario Rate: CAD $3,390/year
- Kia Forte
- Why: Affordable repairs and good safety ratings contribute to its favorable insurance premiums.
- Fictional Ontario Rate: CAD $3,320/year
- Nissan Sentra
- Why: Reliable, safe, and comes with features that can help avoid accidents.
- Fictional Ontario Rate: CAD $3,360/year
Reasons These Cars are Best to Insure:
- Safety Ratings: Vehicles that score well in safety tests are less likely to be involved in accidents that result in injury, reducing potential medical claim costs.
- Cost of Repairs: Cars with parts that are readily available and inexpensive will typically cost less to repair, which can lead to lower claim amounts.
- Lack of Performance: High-performance vehicles often attract higher insurance rates due to the increased risk of accidents. The cars listed above are considered to have moderate or low performance.
- Popularity and Reliability: Popular models like the Honda Civic or Toyota Corolla are well-known quantities for insurance companies. Their reliability and the vast amount of data available on them can help keep insurance premiums lower.
- Advanced Safety Features: Many newer models come equipped with advanced safety features like autonomous braking, lane-keep assist, and adaptive cruise control, which can prevent accidents and, consequently, claims.
Best Cars Insurance Companies For New Drivers in Ontario
Here are some of the best car insurance companies for new drivers in Ontario, based on their reputation, coverage options, customer service, and potential discounts for new drivers. Remember, what’s best for one person might not be best for another, so always shop around and find the best fit for your needs.
- Why: Belairdirect offers competitive rates, especially for those who are tech-savvy. They offer discounts for those willing to install a telematics device to monitor driving habits. They also have a user-friendly online platform and app, making policy management easy.
- Desjardins Insurance
- Why: Desjardins is one of Canada’s largest insurers and offers various discounts, including ones for students and those who drive fewer kilometers. Their telematics program, Ajusto, can help new drivers save by rewarding safe driving habits.
- TD Insurance
- Why: TD has a solid reputation and offers a wide range of coverage options. They provide discounts for students, multi-vehicle policies, and for those who’ve completed a driver’s training course.
- Sonnet Insurance
- Why: Sonnet provides a completely online experience, making it easy for the tech-savvy generation. Their clear and straightforward pricing model can sometimes offer new drivers better rates.
- Intact Insurance
- Why: Intact offers a “My Driving Discount” program where new drivers can save by having their driving habits monitored. They also have excellent customer service reviews and offer various coverage options suitable for different needs.
- Allstate Canada
- Why: Allstate offers a “Drivewise” program where safe driving can lead to savings. They have a long-standing reputation in the industry and provide personalized advice, helping new drivers choose the right coverage.
- The Co-operators
- Why: Known for their excellent customer service and comprehensive coverage options. They often offer competitive rates for new drivers, especially those who bundle other types of insurance.
- State Farm
- Why: State Farm offers numerous discounts that new drivers can take advantage of, including student discounts and accident-free discounts. They have a strong reputation and a long history in the insurance industry.
- CAA Auto Insurance
- Why: CAA members can get discounts on their auto insurance. They also offer a Pay-as-you-Go insurance program, which might be suitable for new drivers who don’t drive as frequently.
- Economical Insurance
- Why: Economical offers competitive rates and a wide range of discounts. Their claims process is straightforward, making it easier for new drivers unfamiliar with the insurance world.
Q1: Why is car insurance so expensive for new drivers in Ontario?
A1: New drivers lack a driving history, making it difficult for insurance companies to gauge their risk. Statistically, new and young drivers are more likely to be involved in accidents. Ontario also has high claim costs, which drive up premiums.
Q2: Are there discounts available for new drivers in Ontario?
A2: Yes, many insurance companies offer discounts such as those for completing a driver’s education course, having a good academic record, installing winter tires, or using telematics devices to monitor driving habits.
Q3: Does the type of car I drive affect my insurance rate?
A3: Absolutely. High-end or sporty cars are usually more expensive to insure. It’s best to choose a safe, reliable, and modest vehicle when you’re a new driver to keep insurance costs down.
Q4: How can I reduce my insurance premium as a new driver?
A4: Consider increasing your deductible, enrolling in a telematics program, bundling insurances, taking formal driving lessons, and regularly shopping around to ensure you’re getting the best rate.
Q5: Is it cheaper to be added to my parents’ policy or get my own?
A5: It’s typically cheaper to be added to an existing policy as a secondary driver. However, it’s essential to be truthful about who the primary driver is; otherwise, it can be considered insurance fraud.
Q6: How often should I shop around for car insurance?
A6: It’s a good idea to review your policy and compare rates annually or whenever there’s a significant change in your situation, like moving to a new city or buying a new car.
Q7: Will my premiums decrease as I gain more driving experience?
A7: Yes, as you gain more experience and maintain a clean driving record, your premiums will generally decrease.
Q8: How does gender affect car insurance rates for new drivers?
A8: Historically, young male drivers have paid higher premiums than young female drivers due to statistical differences in risk. However, Ontario has banned insurance companies from pricing based on gender, so it shouldn’t impact rates.
Q9: What is the minimum required insurance coverage in Ontario?
A9: Every driver in Ontario must have at least third-party liability coverage, statutory accident benefits, direct compensation-property damage coverage, and uninsured automobile coverage.
Q10: What happens if I get into an accident as a new driver?
A10: If you’re at fault, you may see an increase in your premiums. However, some companies offer accident forgiveness for the first at-fault accident. Always report the accident to your insurer, regardless of fault.