When a new driver has obtained their G2 licence they will want to also get the proper vehicle insurance. Here they are going to learn that this can be costly and how much it will be will depend on the specific circumstances of the individual
How Much Is Car Insurance For A G2 Driver?
The average cost of car insurance for G2 drivers in Ontario is $2,400 yearly. It’s $200 per month.
Other metrics besides driver experience is taken into account when determining the cost of premiums for any driver. This amount of $2,400 is based on adding 25% to the average cost of vehicle insurance in Ontario. The average cost is $1,920 yearly. Some insurance companies may increase this by as much as 50%.
Insurance companies use many different metrics and data for determining how much they are going to charge an insurance applicant for premiums. For new drivers, the main focus is their experience which is indicated by their licence grade as well as their age. In addition to this, there will be other things that are taken into account.
The insurance company will want to know if the new driver will be insuring their own vehicle. Or will they be added to their parent’s vehicle insurance? Which in this case means they will be insured while driving their parent’s car. They are listed on the policy as an occasional driver. This means it is assumed they will not be driving this vehicle as much as they would if they owned the car. The insurance companies recognize this and will give a lower rate for the new driver.
Can You Drive Without Insurance With A G2?
No. You cannot.
Throughout the Canadian provinces, vehicle insurance is mandatory. This is applicable to anyone that is going to drive a vehicle.
Can A G2 Driver Buy A Car?
Yes. Anyone can buy a car.
You do not need insurance or a licence to buy a vehicle. However, you will not be able to drive that vehicle without having both.
How Much Does Insurance Go Down From G2 To G?
There is no rule that specifically says that insurance rates will go down when a G2 driver has graduated, to a G licence. However many insurance companies will give a discount when there is a change in the licence. The graduation to a G license indicates that the driver now has additional knowledge and experience. This helps to reduce the risk of the Insurance company providing insurance coverage.
G2 Requirements and Restrictions
Once you have had the G1 license for 12 months, or 8 months after you successfully complete a driver’s training course where the driver must pass an advanced road test, the driver will be issued a probationary license (referred to as the G2). With the G2 license, the driver can drive whenever he or she wishes, alone or with passengers.
Although G2 drivers have more privileges than G1 drivers, they do have some restrictions. These include the following:
- G2 drivers cannot drive between 12:00 a.m. and 5:00 a.m.
- Cannot drive on high-speed freeways (including 400-series highways)
- They must have a blood alcohol level of zero
- They are limited, on the number of travellers under the age of 19 between midnight and 5 a.m.
- The number of passengers must be the same as the number of seatbelts in the vehicle
The G2 driver will gain experience as he or she complies with the restrictions and avoids traffic violations and accidents.
In Ontario, it is relatively cheaper to add an inexperienced driver to your policy, especially compared to purchasing their own vehicle. Although, your insurance company will charge additional premiums for adding another driver onto your auto insurance policy.
The Graduated Licensing Program
Insurance companies pay a great deal of attention to the driving experience that their clients have. This helps to determine what they are going to charge for the premiums.
In Ontario vehicle driving licensing is done through a graduated program.
Everyone applying for a driver’s licence in Ontario will have to be sixteen or over. They will need to pass a general knowledge test of the rules of the road along with the recognition of traffic signs. Then also successfully pass a vision test. Once these criteria are met they can now go into the graduated licensing program.
- G1 Level will require the passing of a road test to move onto level two
- G2 Level requires another road test to move onto the final level
- G level is the final level required to drive independently in Ontario.
Insurance companies will take into account these different levels. The company should be notified when the driver has moved up to another level as this will affect the premiums. Even if a G licenced driver has a change in their licence they too should notify their insurance company.
Keeping The Cost Of Insurance Down For G2 Drivers
With the cost of Insurance being substantial for G2 drivers it is worth taking a look at what can be done to keep the costs down.
As mentioned it will be cheaper for these drivers to be insured under their parent’s insurance. It may be worth taking a close look at the current insurance coverage for the parents. They may be getting a good rate for their insurance but are they getting a good rate for the new G2 driver? It might be worth getting some quotes for new insurance to see if another insurance company can still meet the needs of the parents with good rates but also offer better rates for the new driver.
Getting quotes is quick and easy if the right resources are used like the different quote finders that are available on the web. This exercise will only be worth it if the new driver is going to remain on the parent’s policy for at least a year. If they intend on buying their own vehicle once they have obtained their G licence then they will need to shop for their own insurance. The quote finders can also be beneficial for them as well. Not all insurance companies charge the same premiums, so better rates may be found.
Insurance Education For The New Driver
Quite often the G3 driver is super excited about being able to drive. They may not be held responsible for paying for their insurance. It is common for the parents to take on this expense at least until the new driver is able to afford the insurance payments.
A mistake that can be made here is not educating the new driver about the way that insurance works. They may take things for granted as they are not currently paying for this. The new driver has to be prepared for when they will be taking over the payments. They need to be educated about ways that they can reduce their costs. They should be told that:
They will bet lower rates if they take a driver’s education course.
As a student, they maintain a GPA.
That they are diligent about building a clean driving record. Which means no accidents or driving infractions.
Driving and vehicle insurance is a new experience for the new driver. If they are informed about the costs of insurance and how they can work towards reducing these costs it will help them to develop good driving habits.