Whether you’re a new or young driver, or even a parent quietly footing the bill for their child, you probably need a guide that explains how much the cost will be and how to get a lower premium.
Read this article to find out how much new and young drivers actually pay, how age and licence class change the price, which coverages are worth adding, and the practical moves that lower your rate.
The premiums in this article are drawn from MyChoice’s own database of thousands of Ontario auto insurance quotes collected in 20,26 with Alberta figures included where noted for comparison.
Average Car Insurance Rates for New & Young Drivers in Canada
New and young drivers pay more for car insurance because insurers consider them higher risk. Most accidents happen in the first few years of driving, but the risk drops as drivers gain experience.
Here are average yearly car insurance premiums by age, based on data from Ontario and Alberta.
| Age | Average Annual Car Insurance Premium for a New Driver in Ontario | Average Annual Car Insurance Premium for a New Driver in Alberta |
|---|---|---|
| 18–20 | $6,118 | $5,015 |
| 21–24 | $3,156 | $2,569 |
| 25–34 | $2,430 | $2,056 |
Insurance premiums usually drop in your early 20s and keep going down through your 30s, then level off later in life. Although the exact price depends on your province, car, and driving record, this pattern is the same across Canada.
Age isn’t the only driver of price. The type of licence you hold is just as big a factor. Learners and probationary drivers pay well above fully licensed drivers:
| Licence class | Average Annual Car Insurance Premium for a New Driver in Ontario |
|---|---|
| G2 | $6,296 |
| Full G licence | $3,156 |
What Coverages Should I Get as a New Driver?
Besides the mandatory minimum coverage, which varies by province, we suggest that new and young drivers also consider these extra coverages.
How You Can Lower Your Rates
- Try to avoid making claims when you’re just starting out. An accident at 19 will raise your rates more than one at 39.
- Consider telematics or usage-based insurance. Safe driving can earn you discounts.
- Pick a practical car. Insurance costs are based on repair expenses and theft risk, not how your car is performative or stylish.
- If you can, stay listed as an occasional driver. This helps you build your driving history before you take on full responsibility.
- Shop around and compare insurance companies every year. Rates change as you get older, and being loyal doesn’t always help new drivers.
Which Insurance Company is Best for New & Young Drivers?
There’s no single “best” insurer for new drivers. The cheapest company shifts constantly and depends on your exact age, licence stage, and car. The reliable move is to compare several quotes side by side each year, which you can do on MyChoice in a few minutes.
The single highest-leverage move for a new driver is to stay on a parent’s policy as an occasional or secondary driver for as long as you honestly can, and re-shop at every renewal. According to our internal data, the jump from G2 to full-G pricing alone is worth roughly $3,000 a year. Your goal should be to get through the graduated licensing system with a clean record as soon as possible.
Read More: Top 15 Car Insurance Providers in Ontario