Car insurance isn’t cheap for anybody, but new or young drivers are considered higher-risk, so they pay even more than other drivers. It’s a lot to swallow when you’re looking at quotes in the thousands of dollars. Here’s what you can expect to pay as a young or new driver and some of our tips to save money on insurance.
The premiums are drawn from MyChoice’s database of thousands of Ontario auto insurance quotes collected in 2026, with Alberta figures included where noted.
Average Car Insurance Rates For New & Young Drivers In Ontario And Alberta
New and young drivers pay more for car insurance because insurers consider them higher risk.
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 |
Age isn’t the only driver of price. The type of licence you hold is also a factor.
| 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, new and young drivers may want to consider these extra coverages.
Collision
Collision coverage may be worth considering for a new driver, particularly when paying for the vehicle’s repairs after an at-fault accident would create financial difficulty.
Accident Forgiveness (Ontario’s OPCF 39)
If you are eligible to add accident forgiveness, it may protect you against a premium increase after a qualifying accident, subject to the endorsement terms.
Loss Of Use (Ontario’s OPCF 20)
Useful if you rely on your car for work or school. Optional, but practical.
Waiver Of Depreciation (Ontario’s OPCF 43)
Waiver of Depreciation, or Ontario’s OPCF 43, may be worth considering if your car is new or recently purchased. It generally is not intended for an older vehicle.
How You Can Lower Your Rates
There are a few things you can do to offset high premiums:
- Stay on your parents’ car insurance as an occasional driver for as long as you can, provided you actually use the vehicle occasionally. You’ll likely pay less than you would as the primary driver on a vehicle in your name, and it’ll help you build up your driving history.
- Consider telematics or usage-based programs that monitor driving behaviour and may adjust your premium based on the program terms.
- Choose a car that’s less expensive to repair and less likely to be stolen.
- Shop around and compare quotes often. There’s no one insurance company that will be the best or cheapest option for everybody. Prices vary based on each person’s circumstances, so it’s important to get quotes from several insurance companies.
Which Insurance Company Is Best For New & Young Drivers?
There’s no single “best” insurer for new drivers. The price depends on your exact age, licence stage and car.
Compare several quotes side by side each year, which you can do on MyChoice in a few minutes.
Read More: Top 15 Car Insurance Providers in Ontario