Getting your G1 and G2 licenses is a significant milestone in anybody’s life! It opens new doors to freedom and lets you enjoy the open road. However, to fully appreciate and protect your car, you will need the proper auto insurance coverage for these new drivers in your family. An important thing to remember is that depending on whether you have your G1 or G2 licence, your auto insurance may be affected differently. Luckily, isure has everything you need to know regarding how a G1 or G2 licence affects auto insurance policies.
G1 licence and insurance
First and foremost, one of the significant differences between G1 and G2 insurance is that G1 licence holders can’t carry their insurance coverage. The rules for obtaining a G1 state that you must be in the car with a fully insured and licensed driver. Because of this, they will need to be covered by another driver’s coverage. However, you don’t need to worry about faking. Adding a G1 to an existing insurance plan has no financial effect. It is also super important to check with your provider. Every company will have its guidelines for adding a novice driver to an existing plan. However, it’s always essential to let your isure broker know that a G1 driver in your family will use your vehicle.
Additionally, it’s important to remember that your insurance premiums may be affected if the G1 holder gets into an accident. It’s always crucial to make sure the licence holder knows their limits. The G1 holder is also able to buy their vehicle. However, as mentioned earlier, getting that vehicle adequately insured can be difficult.
To learn more about G1 licence restrictions in Ontario, click here.
G2 licence and insurance
When you eventually graduate to a G2 licence, you have fewer restrictions than a G1 driver. As you’re an independent driver, you can hold your auto insurance plan. However, that doesn’t mean it’s smooth sailing! First, going for driving school courses during your G1 is always recommended before moving to a G2. It’s excellent practice, and insurance companies look favourably on this. Doing so can lower your premiums!
It’s also best to remember that you’re a beginner and a high-risk driver to most providers. They take this into account when deciding on insurance for you. This can change over time in the form of lower rates. You have to maintain a good driving record and gain regular experience. You’ll qualify for an insurance discount once you move to a G-class licence!
In Ontario, G2 drivers pay about 10% more for car insurance than G1 drivers. This is because it indicates more driving experience and a lower risk to insurance companies:
- Insurance rates: Insurance rates are based on several factors, including age, driving experience, and the type of car you drive.
- Licensing system: Ontario’s graduated licensing system includes G1, G2, and full G license levels.
- Risk factors: New drivers are considered higher risk and pay more for insurance.
- Discounts: Some providers offer discounts for driver training and safe driving.
If you are the parent of a new G2 driver, you’ll need to add them to your existing policy. This can be done by simply contacting your isure broker, and price adjustments will be made accordingly. This is done so that if an accident occurs, everyone will be protected. Additionally, listing your child as an occasional driver can save you even more.
Driving Training Discounts
As a G2 driver, there are some ways to save money. Some providers offer driving training discounts, which can help offset higher premiums for those under 25. If you buy a new car, ensure it has a reputation for safety and ease of repair; this also helps lower insurance. Finally, it’s always recommended to maintain the cleanest driving record possible.
How much of a discount is available?
isure.ca offers discounts on auto insurance for drivers who complete a Ministry-approved driving school in Ontario.
- Discounts can range from 5–30% but are typically between 10–20%
- The exact amount depends on your insurance company and policy
- Insurance companies view driving school as an indication of more experience and a lower risk of accidents
How do I get the discount?
- You’ll need to show your driver training certificate to your insurance company
- You’ll receive a notation on your driving record confirming course completion
Additional benefits of driving school
- G2 drivers who take driving school can get their G license after eight months instead of the usual 12 months
- Driving school can save new drivers thousands of dollars over a few years
Other ways to save on car insurance are to bundle home and auto insurance, install winter tires, install safety features like anti-theft devices, and use usage-based insurance.
What happens next?
Once you surpass the 12 months of G2 training, you graduate to your G licence! This is a full licence that lets you drive anywhere with any number of passengers in the car. It will grant you full freedom to cruise wherever you’d like. If you maintain a clean driving record while having your G2, you can potentially see a decrease in your insurance premiums. Usually, they will decrease by around 10%, and with each year, they will gradually decrease more if you maintain a clean record.
Experienced drivers know the pain of high insurance rates when getting that G1 and G2 licence. Maintaining a clean driving record is essential to keep everybody safe and save you money in the years to come! Get the best insurance rates in Ontario with isure. From home to auto insurance, over 25 insurance companies compete for your insurance needs, giving you the best competitive results possible.
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