DriveInOntario.caOntario has some of the highest car insurance rates in Canada, and new drivers pay the most of anyone — insurers price a driver with no history as higher-risk almost by definition. Here's how the pieces most new drivers ask about actually work.
This is general information to help you understand your options, not financial advice. Insurance pricing varies by company and by driver, so confirm current rates and discounts directly with insurers or a licensed broker.
How Beginner Driver Education (BDE) affects your rate
Completing a government-approved Beginner Driver Education course doesn't just shorten your wait time between G1 and G2 (see our G1 to G2 timeline guide) — most major Ontario insurers also give a discount to drivers who complete one, since it demonstrates structured training beyond the minimum required to pass the test. The exact discount varies by company, but Ontario insurance brokers commonly cite figures somewhere in the 5–20% range off the new-driver portion of a premium, and some insurers keep the discount in place for the first several years of your driving record. You'll usually need to show your BDE completion certificate directly to your insurer — some apply it automatically, others only if you ask.
One important catch: the discount only applies to courses from schools on the official Ontario government-approved driving school list. There have been cases of driving schools promising insurance discounts or fast-tracked certificates without actually delivering ministry-approved training — if a school's claims sound like a shortcut, check the official list before you pay.
Adding a new driver to a parent's policy
For most families, adding a new driver to an existing policy as a listed driver costs less than buying a brand-new, standalone policy for a teenager or young adult. A few things that commonly affect the cost:
- Which car they'll drive. Insurers price based on the specific vehicle a new driver is added to — a policy naming them as the primary driver of an older, lower-value car is often cheaper than adding them to a newer or higher-performance vehicle.
- Driving history on the household policy. A long claims-free history on the parents' policy can help keep the overall cost down, though the new driver's own inexperience still factors in separately.
- Multi-vehicle and loyalty discounts. Bundling a new driver onto an existing multi-car household policy sometimes qualifies for discounts that a standalone policy wouldn't get.
Because pricing depends on the insurer, the vehicle, the driver's record, and the household's own policy history, there's no single "right" number to expect — getting quotes from a few insurers or a broker is the only reliable way to see what applies to your situation.
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What actually helps, long term
Insurers gradually shift from pricing you as "no history" to pricing you on your actual record — typically over the first several years of driving. A clean record with no claims or convictions does more for your long-term rate than anything else, which is one more reason the fundamentals covered throughout this site (knowing the rules, practicing before your road tests, and driving cautiously as a new G2 driver) pay off well beyond just passing your tests.