Why is car insurance for new drivers so expensive?

Did your jaw hit the floor when you saw what your annual insurance premium would be after getting your first car? You’re not alone. Car insurance for new drivers is much higher than for older, more experienced drivers.

This is why new drivers often pay higher premiums than their older counterparts on the road—but don’t get discouraged! We have solutions to lower your premiums as well.


Yahoo! You’re licensed, but what will it cost?

For several years now, Ontario has been ranked as one of the most expensive provinces in Canada when it comes to car insurance, and particularly among young drivers. Car insurance for young driversand in some cases males more than femaleswill often reflect steep premiums based on statistical probabilities instead of personal history (at first).

Some would argue that these young drivers are being penalized and treated unfairly considering they have no driving history, since they are being rated for a non-existent history of driving convictions. Unfortunately, it is true that young drivers do cause a disproportionate amount of damage, statistically. Drivers between the ages of 16 and 24 represent about only 13% of the total driving population, yet account for 24% of all fatalities and 26% of serious injuries.



Thankfully, there are ways in which young drivers can save themselves money on car insurance. An accredited Driver Training Course (DTC) is always recommended not only to teach young drivers invaluable skills when it comes to road safety, but it will also entitle candidates to discounts upon successful completion.

Another discount young drivers may be eligible for is when they are occasional drivers and living away from home while at college or university. Discuss this with your insurance broker to make sure you’re taking advantage of all discounts available.


“New drivers” aren’t necessarily young drivers

One of the great things about Ontario is our diversity. On average, we welcome over 100,000 new immigrants every year according to Ontario Immigrationthat’s half of Canada’s total annual immigration. Of these newcomers, many drivers may come with years of experience driving in their country of origin. Despite their years of experience, each insurance company may consider this past experience differently. In some cases they will be considered a “new driver,” as they are essentially a new driver in Ontario.

If you do have experience driving elsewhere, ask for a letter of experience from the company that insured you at the time.

Winter driving in Ontario is a huge factor in crashes even for drivers who have lived here their whole lives, so it stands to reason that newcomers would need an adjustment period as well. Car insurance for new drivers in Ontario would be higher for many new Canadians as a result.

Depending on the country you’re coming from, you may have options to provide documentation that can count towards your driving history. It’s recommended to have a discussion with your insurance broker to review your options.

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