In Ontario, Canada, the licensing system for drivers is graduated, consisting of three stages: G1, G2, and G. If you are a G2 driver or you’re insuring one, it’s essential to understand how insurance works for this category of driver. Here’s a rundown of car insurance for G2 drivers in Ontario:
- Why G2 Drivers Might Pay More:
- Inexperience: Statistically, inexperienced drivers (especially younger ones) are more likely to be involved in accidents.
- Risk Assessment: Insurers base premiums on the level of risk they perceive, and G2 drivers, being in the intermediate stage, often represent a higher risk.
- Ways to Reduce Insurance Costs for G2 Drivers:
- Driver’s Training Course: Completing an approved driver’s education course can lead to discounts on car insurance.
- Increase Deductibles: By raising your deductible, you can reduce your premium. However, this means you will pay more out-of-pocket if you are at fault in an accident.
- Bundle Insurance: If you or your family has multiple insurance needs (like home, multiple vehicles, etc.), you might be eligible for discounts by bundling them under one insurance company.
- Usage-based Insurance Programs: Some insurers offer discounts based on driving habits tracked through a telematics device.
- Shop Around: Rates can differ considerably between insurers. It’s worthwhile to get multiple quotes before settling.
- Coverage Options:
- Mandatory Coverage: In Ontario, every vehicle owner must have the following coverages:
- Third-Party Liability
- Statutory Accident Benefits
- Direct Compensation & Property Damage
- Uninsured Automobile Coverage
- Optional Coverage: These are not mandatory but can offer increased protection:
- Collision (covers damages to your vehicle in the event of a collision)
- Comprehensive (covers damages not caused by a collision, such as theft, vandalism, or natural disasters)
- Add to Existing Family Policy: If a G2 driver is living with family members who already have an insurance policy, it might be cheaper to add the G2 driver to the existing policy rather than getting a separate one.
- Remember the Rules: G2 drivers have certain restrictions, such as zero tolerance for alcohol and the number of young passengers they can carry during certain hours. Violating these conditions can lead to penalties, license suspensions, and an increase in insurance premiums.
- Duration: Generally, once a driver progresses from a G2 to a full G license and gains more driving experience, their insurance premiums should start to decrease, all other factors being constant.
When insuring a G2 driver in Ontario, it’s essential to work closely with an insurance broker or agent to understand the options available and find the best rates. The goal is not just to find the cheapest insurance but to ensure adequate coverage and protection.
How Much Is Car Insurance For A G2 Driver?
The cost of car insurance for a G2 driver in Canada can vary widely depending on a number of factors, including:
- Age: Younger drivers, especially those under 25, tend to face higher insurance rates.
- Driving record: A history of accidents, traffic violations, and claims will increase the cost of insurance.
- Type of vehicle: The make, model, and year of the vehicle you drive can impact the cost of insurance, with some vehicles being cheaper to insure than others.
- Location: Insurance rates can vary by region, with urban areas typically having higher insurance costs due to higher traffic density and accident frequency.
- Insurance company: Different insurance companies use different methodologies to calculate insurance premiums, so it’s important to shop around and compare quotes from multiple providers.
Average car insurance for g2 drivers in Ontario
Here is the average cost of auto insurance for G2 drivers in Ontario, based on a 30-year-old driver with a G2 license, driving a 2018 Honda Civic, with a clean driving record:
- Toronto: $3,900 per year or $325 per month
- Ottawa: $2,875 per year or $240 per month
- Mississauga: $4,150 per year or $346 per month
- Brampton: $4,500 per year or $375 per month
- Hamilton: $2,550 per year or $212 per month
- London: $2,775 per year or $231 per month
- Markham: $3,950 per year or $329 per month
- Vaughan: $4,050 per year or $338 per month
- Kitchener: $2,675 per year or $223 per month
- Windsor: $2,450 per year or $204 per month
- Barrie: $3,300 per year or $275 per month
- Guelph: $2,750 per year or $229 per month
- Kingston: $2,700 per year or $225 per month
- St. Catharines: $2,700 per year or $225 per month
- Whitby: $3,100 per year or $258 per month
- Ajax: $3,150 per year or $263 per month
- Cambridge: $2,600 per year or $217 per month
- Belleville: $2,500 per year or $208 per month
- Brantford: $2,600 per year or $217 per month
- Chatham-Kent: $2,250 per year or $188 per month
- Cornwall: $2,400 per year or $200 per month
- Georgetown: $3,900 per year or $325 per month
- Newmarket: $3,750 per year or $313 per month
- Orangeville: $3,700 per year or $308 per month
- Orillia: $3,200 per year or $267 per month
- Owen Sound: $2,600 per year or $217 per month
- Peterborough: $2,750 per year or $229 per month
- Sarnia: $2,350 per year or $196 per month
- Sudbury: $2,500 per year or $208 per month
- Thunder Bay: $2,350 per year or $196 per month
Actual cost of auto insurance in Ontario can vary widely depending on the specific driver profile, insurance provider, and coverage options selected. It’s always a good idea to shop around for coverage from multiple providers and compare rates to find the best coverage at the best price.
On average, a G2 driver in Ontario can expect to pay between $2,000 – $4,500 per year for car insurance, although the actual cost can be much higher or lower depending on the factors listed above.
How much does insurance go down from G2 to G?
The transition from a G2 to a full G license in Ontario often results in a decrease in car insurance premiums, primarily because the full G license represents a higher level of driving proficiency and experience. However, the exact amount the insurance goes down can vary based on several factors:
- Insurance Company: Different companies might have different rates and policies regarding graduated licensing.
- Driving Record: A clean driving record during the G2 stage will likely result in a more significant discount when transitioning to a G license.
- Location: Areas with high traffic or accident rates (like some parts of Toronto or Brampton) might see less of a decrease compared to quieter areas.
- Age: Younger drivers generally pay more for insurance. So, even with a full G license, a very young driver might still pay a higher rate than an older driver.
- Other Discounts: If the driver has other discounts applied (like multi-vehicle, home and auto bundle, etc.), the actual observed drop when moving from G2 to G might be less noticeable.
Typically, drivers could expect to see a decrease of anywhere from 5% to 20% on their premiums when moving from a G2 to a G license, though this is a general estimate and can vary.
|Age Group||G2 License Premium (avg. yearly)||Full G License Premium (avg. yearly)|
Some key assumptions made for this table:
- Drivers in the age group 16-18 are unlikely to have a full G license, hence the N/A.
- Premiums generally decrease with age and experience.
- Holding a full G license tends to lower the premium slightly due to increased experience and trustworthiness from an insurer’s perspective.
If you or someone you know is transitioning from G2 to G, the best course of action would be to contact the insurance provider directly and inquire about potential savings. It’s also a good opportunity to shop around and see if other providers offer better rates for drivers with a full G license.
Can You Drive Without Insurance With A G2?
No, you cannot legally drive without insurance in Ontario, regardless of whether you have a G1, G2, or full G license. All drivers are required to have a minimum level of auto insurance coverage. The mandatory coverages include:
- Third-Party Liability Coverage: This covers you if someone else is killed or injured or if their property is damaged due to your fault. The minimum coverage amount is $200,000, although many Ontarians opt for more coverage.
- Statutory Accident Benefits Coverage: Provides benefits if you are injured in an auto accident, regardless of who is at fault.
- Direct Compensation & Property Damage (DC-PD) Coverage: Covers you for damage to your vehicle and its contents, and for loss of use of your vehicle or its contents if another person was at fault for the auto accident.
- Uninsured Automobile Coverage: Protects you in case of death or injuries caused by an uninsured driver or by a hit-and-run.
Driving without insurance is a serious offense in Ontario. Penalties for driving without valid auto insurance include:
- A fine of between $5,000 to $25,000 for a first offense and between $10,000 to $50,000 for subsequent offenses.
- The potential impounding of your vehicle.
- The suspension of your driver’s license for up to one year.
Furthermore, if you’re caught driving without insurance, you could also face significantly higher insurance premiums in the future, making it even more costly in the long run.
Always ensure that you have adequate insurance coverage before getting behind the wheel in Ontario, or anywhere else for that matter.
Can A G2 Driver Buy A Car?
Yes, a G2 driver can buy a car in Ontario. Having a G2 license means the driver has passed the initial phase of the graduated licensing system and has more privileges than a G1 driver. When it comes to purchasing a vehicle, the type of driver’s license one holds does not typically impact the ability to buy a car. However, there are a few things a G2 driver should keep in mind:
- Ownership vs. Insurance: While a G2 driver can buy and own a car, they must ensure they can obtain insurance for it. As previously mentioned, driving without insurance in Ontario is illegal.
- Insurance Premiums: G2 drivers, especially if they’re younger or inexperienced, might face higher insurance premiums compared to drivers with a full G license.
- Financing: If the G2 driver is seeking financing for the vehicle, the lender will be more concerned with their credit history and ability to repay the loan than their type of driver’s license.
- Registration: A G2 driver can register the vehicle under their name without any issues.
- Driving Restrictions: G2 drivers must still adhere to the conditions of the G2 license, such as no alcohol in the bloodstream and limitations on the number of young passengers they can carry during certain hours.
In summary, a G2 license holder can buy and own a car in Ontario, but they must make sure they can get it insured and should be aware of the driving conditions associated with the G2 license.
G2 Requirements and Restrictions
In Ontario, the G2 license is the second of three phases in the graduated licensing program. Acquiring a G2 license means you’ve passed the G2 road test, and while it grants more driving privileges than the G1 license, there are still certain requirements and restrictions to be aware of:
G2 License Requirements:
- Waiting Period: Before taking the G2 road test, you must have held your G1 license for at least 12 months. This waiting time can be reduced to 8 months if you’ve completed an approved driver’s education course.
- Pass the G2 Road Test: This test assesses basic driving skills. Once passed, you can drive without an experienced driver in the car and on all Ontario roads and highways.
G2 License Restrictions:
- Blood Alcohol Level: Drivers who hold a G2 license must maintain a blood alcohol level of zero while driving.
- Number of Young Passengers: For the first six months, G2 drivers 19 years old and under are restricted in the number of passengers aged 19 and under they can carry between midnight and 5 a.m. Specifically:
- If you’re 19 or under and driving with a G2 license between midnight and 5 a.m., you’re allowed just one passenger aged 19 or under.
- After the first six months and until the G2 driver turns 20, they can carry up to three passengers aged 19 or under between midnight and 5 a.m.
- All Passengers Must Have Seatbelts: All passengers in the car must wear a working seatbelt. This is a standard rule for all drivers but is emphasized for newer drivers.
To progress from a G2 to a full G license:
- Waiting Period: G2 drivers must wait at least 12 months before they can attempt the G driving test.
- Pass the G Road Test: This is a more advanced driving test that evaluates highway driving skills. Once you pass this test, you’ll be granted a full G license, and all G2 restrictions will be lifted.
It’s crucial for G2 drivers to understand and adhere to these restrictions. Violating these conditions can result in penalties, license suspensions, and higher insurance premiums.
Keeping The Cost Of Insurance Down For G2 Drivers
Keeping the cost of insurance down for G2 drivers is important, as insurance premiums can be notably higher for drivers with less experience, especially if they are young. Here are some strategies and tips to help reduce the cost of insurance for G2 drivers:
- Complete a Driver’s Education Course: Many insurance companies offer discounts to drivers who have completed a Ministry-approved driver’s education course. It’s an upfront investment, but the savings over time can be significant.
- Maintain a Clean Driving Record: Avoid traffic violations and accidents. A clean record over time can significantly decrease insurance premiums.
- Drive a Lower-Value, Safe Vehicle: High-performance or luxury cars typically cost more to insure. Instead, choose a vehicle known for its safety and reliability. Some companies offer discounts for vehicles equipped with certain safety features.
- Increase Deductibles: If you’re willing to pay a higher deductible (the amount you pay in the event of a claim), your premium will typically be lower. Just ensure you can afford the deductible you choose.
- Bundle Policies: If you or your family has other insurance policies (home, renters, other vehicles), bundling them with the same insurance provider can often result in discounts.
- Limit Coverage on Older Cars: If you have an older car, consider dropping collision and/or comprehensive coverage if the vehicle’s value doesn’t justify these coverages.
- Usage-Based Insurance: Some companies offer telematics programs where a device is installed in your car to monitor driving habits. Safe driving can lead to discounts.
- Limit Distance Driven: If you don’t drive much, you might qualify for a low-mileage discount. Some insurance companies offer reduced rates for drivers who drive fewer than a certain number of kilometers per year.
- Student Discounts: Some companies offer discounts for students who maintain good grades in school.
- Shop Around: Don’t settle for the first quote you receive. Different insurance providers have different metrics and might offer different rates. Get multiple quotes before deciding.
- Inquire About Discounts: Always ask the insurance provider about potential discounts. Whether it’s for safety features in the car, being a member of a particular organization, or any other reason, it’s always good to ask.
- Stay on a Family Policy: If a young G2 driver is living with parents or guardians, it might be more cost-effective to be added to their policy rather than getting an independent one.
Cheapest Cars to insure for G2 drivers
The cost of auto insurance for G2 drivers can vary depending on a variety of factors, including the driver’s age, location, driving record, and the make and model of their vehicle. Here are some examples of the cheapest cars to insure for G2 drivers in Ontario, data from online insurance quote providers, along with their average monthly and yearly insurance rates, for a 30-year-old driver with a clean driving record and a G2 license:
- Honda Civic – $140 per month or $1,680 per year
- Toyota Corolla – $145 per month or $1,740 per year
- Hyundai Elantra – $148 per month or $1,775 per year
- Mazda3 – $150 per month or $1,800 per year
- Volkswagen Jetta – $154 per month or $1,850 per year
- Kia Forte – $156 per month or $1,870 per year
- Chevrolet Cruze – $157 per month or $1,880 per year
- Ford Focus – $160 per month or $1,920 per year
- Nissan Sentra – $163 per month or $1,960 per year
- Subaru Impreza – $166 per month or $1,990 per year
Here are the average monthly and yearly insurance rates for these cars in 10 major cities in Ontario, based on the same driver profile and coverage:
- Toronto: $185 per month or $2,220 per year
- Ottawa: $145 per month or $1,740 per year
- Mississauga: $198 per month or $2,375 per year
- Brampton: $216 per month or $2,590 per year
- Hamilton: $136 per month or $1,630 per year
- London: $148 per month or $1,775 per year
- Markham: $191 per month or $2,290 per year
- Vaughan: $194 per month or $2,325 per year
- Kitchener: $142 per month or $1,710 per year
- Windsor: $130 per month or $1,560 per year
Actual cost of auto insurance can vary depending on the specific driver profile, insurance provider, and coverage options selected. It’s always a good idea to shop around for coverage from multiple providers and compare rates to find the best coverage at the best price.
List of best insurance companies for G2 drivers
Insurance companies vary in how they assess and price risk, especially for G2 drivers who are often seen as higher risk due to their limited driving experience. The “best” insurance companies for G2 drivers often offer competitive rates, good customer service, and additional benefits or discounts tailored to newer drivers.
Here’s a list of insurance companies that have historically been considered good options for G2 drivers in Ontario, based on various factors:
- Why: They have competitive rates for young drivers and offer discounts for combining auto and home insurance. They also have a user-friendly online platform, allowing you to manage your policy easily.
- Desjardins Insurance:
- Why: Desjardins offers various discounts, including a telematics program that rewards safe driving habits. They also have a reputation for good customer service.
- TD Insurance:
- Why: Known for offering student and alumni discounts, TD caters well to younger drivers. They also have a strong reputation for reliable claims service.
- State Farm:
- Why: Often praised for their customer service, State Farm also offers a Drive Safe & Save program, where good driving can lead to discounts.
- Why: They offer a “Drivewise” program that rewards safe driving. Plus, bundling multiple policies can lead to significant savings.
- Why: They offer a range of discounts, including ones for good students and for completing a certified driver’s training course. Their claims process is also seen as straightforward and reliable.
- Sonnet Insurance:
- Why: An entirely digital platform, Sonnet provides quick online quotes and policy management, making it easy for tech-savvy G2 drivers.
- Intact Insurance:
- Why: Intact offers a “My Driving Discount” program where drivers can save by demonstrating safe driving. They’re also one of the largest insurers in Canada, known for their comprehensive coverage options.
- Why: Aviva is one of the largest insurers in Canada and offers a range of coverage options and discounts. They have a reputation for reliability and have various tools and services available online.
- CAA Insurance:
- Why: Besides being known for their roadside assistance, CAA also offers auto insurance. Members might get additional discounts, and they have a pay-as-you-go insurance option for those who drive less.
- Economical Insurance:
- Why: A well-established company, Economical provides diverse coverage options and often has promotions or discounts available.
- Travelers Canada:
- Why: Originating from the US, Travelers has established a strong presence in Canada and offers comprehensive auto insurance policies. They’re known for their efficient claims service.
- Wawanesa Insurance:
- Why: Wawanesa has a long-standing reputation for customer satisfaction and offers competitive rates, especially for those with a clean driving record.
- Pembridge Insurance:
- Why: Pembridge offers a variety of coverages and is known to provide discounts for drivers who have completed accredited driving courses.
- Gore Mutual:
- Why: As one of Canada’s oldest insurance companies, Gore Mutual has a long-standing reputation for reliability. They offer a modern digital experience paired with personalized service.
- Johnson Insurance:
- Why: Known for their customer-centric approach, Johnson often offers discounts and benefits for members of specific organizations or professions.
When considering any of these companies, always:
- Get Multiple Quotes: Rates can vary significantly from one insurer to another.
- Check Reviews: Look for reviews or testimonials regarding customer service and claims handling.
- Ask About Discounts: Always ask about potential discounts, whether for safe driving, bundling, or other factors.
The insurance landscape is competitive, so taking the time to research and shop around can result in significant savings and better coverage tailored to individual needs.
Yes, a G2 driver in Ontario can legally drive someone else’s car. However, there are important considerations to keep in mind:
- Insurance: The car must be insured. When a G2 driver drives someone else’s car, it’s typically the car’s insurance that comes into play in the event of an accident, not the driver’s personal insurance (if they have one). The car owner’s insurance policy should have liability coverage for other drivers.
- Owner’s Permission: The G2 driver must have explicit permission from the owner of the car to drive it.
- Driving Restrictions: G2 drivers must still adhere to the restrictions of their license, such as maintaining a zero blood alcohol level and following restrictions about young passengers during certain hours.
- Potential Impact on Premiums: If a G2 driver is involved in an accident while driving someone else’s car, it could affect the car owner’s insurance premiums.
- Insurance Limits: The car owner’s insurance will cover up to the policy’s limits. If the G2 driver is at fault in a significant accident that exceeds those limits, the driver could be personally liable for the additional amount.
If a G2 driver plans to drive someone else’s car regularly (e.g., a parent’s car), it’s a good idea for the car owner to inform their insurance company and ensure the G2 driver is listed as an occasional driver on the policy. This might adjust the premium, but it ensures clarity in the event of a claim.
Q: Do G2 drivers need their own insurance to drive? A: Not necessarily. G2 drivers can either be added as occasional drivers on someone else’s policy (like a parent’s policy) or have their own insurance. If driving someone else’s car, the car’s insurance typically covers them, but the car owner should inform their insurance company.
Q: Is car insurance more expensive for G2 drivers? A: Generally, yes. G2 drivers are often considered higher risk due to their limited driving experience, especially if they are young. However, rates vary based on various factors, including location, vehicle type, and more.
Q: Can G2 drivers get discounts on car insurance? A: Yes. Many insurance companies offer discounts for completing a driver’s education course, maintaining good grades (for students), installing safety devices, and demonstrating safe driving through telematics programs.
Q: What happens if a G2 driver gets into an accident in someone else’s car? A: Typically, the insurance of the car being driven will cover the damages, up to the policy’s limits. However, if the G2 driver is at fault, it could impact the car owner’s future insurance premiums.
Q: Are there any restrictions for G2 drivers when insuring a high-performance or luxury car? A: While there aren’t specific legal restrictions, insuring a high-performance or luxury car can be very expensive for G2 drivers. Some insurance companies might even be hesitant to provide coverage given the combination of an inexperienced driver and a high-powered vehicle.
Q: How long do G2 drivers have to wait before they can take the test for a full G license? A: G2 drivers must wait at least 12 months before taking the G driving test. This waiting period can be reduced if the driver has taken an approved driver’s education course.
Q: Does a G2 license affect car rental options? A: Yes. Many car rental agencies require drivers to have a full G license. Additionally, those that do allow G2 drivers often charge higher rates and may have age-related restrictions.
Q: If a G2 driver violates their license restrictions, how does it affect their insurance? A: Violations can result in increased insurance premiums, as they indicate higher risk. Serious violations or repeated offenses can also result in difficulty obtaining insurance in the future.
Q: Can G2 drivers be the primary policyholders for a car insurance policy? A: Yes, G2 drivers can be the primary policyholders. However, premiums might be higher than if they were added as an occasional driver on an experienced driver’s policy.
Q: Do G2 drivers need to notify their insurance company if they progress to a full G license? A: Yes, it’s a good idea. Moving from a G2 to a full G license might result in reduced insurance premiums due to increased experience and completion of the graduated licensing program.
Q: If a G2 driver gets a speeding ticket, how will it affect their insurance? A: Any traffic violations, including speeding tickets, can increase insurance premiums. The impact varies based on the severity of the violation and the insurance company’s policies.
Q: How does the location (city or town) affect insurance rates for G2 drivers? A: Location plays a significant role in determining insurance rates. Cities with higher traffic densities, like Toronto or Brampton, often have higher insurance rates than more rural areas.
Q: Is there a difference in insurance rates for male and female G2 drivers? A: Historically, gender was a factor in determining insurance rates. However, several provinces, including Ontario, have moved towards gender-neutral pricing to prevent discrimination.
Q: Can G2 drivers use usage-based insurance programs to save on premiums? A: Yes, many insurance companies offer telematics or usage-based insurance programs. These programs monitor driving habits, and safe driving can lead to discounts on premiums.
Q: How often should G2 drivers review their insurance policy? A: It’s a good practice to review insurance policies annually or when there’s a significant change, like moving to a new location, buying a new car, or progressing to a full G license.
Q: Are G2 drivers eligible for multi-vehicle discounts if they insure more than one car? A: Yes, if a G2 driver is the primary policyholder for multiple vehicles, they may qualify for multi-vehicle discounts. However, the specifics vary by insurance company.
Q: What happens to the insurance policy if a G2 driver is involved in an at-fault accident? A: An at-fault accident can result in increased premiums. The exact increase depends on the severity of the accident, the insurance company’s policies, and whether the driver has accident forgiveness protection.
Q: Can G2 drivers be denied insurance due to high risk? A: While rare, insurance companies can deem some drivers too high risk to insure at standard rates. In such cases, drivers might have to seek out specialized high-risk insurance providers, which typically charge higher premiums.