Getting your G1 and G2 licences are a significant milestone in anybody’s life! It opens up new doors to freedom, and lets you enjoy the open road. However, to fully enjoy and protect your car, you’re going to need the proper auto insurance coverage for these new drivers in your family. An important thing to keep in mind is that depending on whether you have your G1 or G2 licence, your auto insurance may be affected in different ways. Luckily, isure has everything you need to know when it comes to the ways a G1 or G2 licence affect auto insurance policies.
G1 licence and insurance
First and foremost, one of the major differences between G1 and G2 insurance is that G1 licence holders can’t carry their own insurance coverage. The rules with obtaining a G1 state that you need to 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, there is no need to fret. There really isn’t any financial effect for adding a G1 onto an existing insurance plan. It is also super important to check with your provider. Every company will have it’s own guidelines when it comes to adding a novice driver to an existing plan. With that being said, it’s always important to give your isure broker a heads up that a G1 driver in your family will be using your vehicle.
Additionally, it’s important to keep in mind 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 own vehicle. However, as mentioned earlier, it can be difficult to get that vehicle properly insured.
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 in comparison to a G1 driver. As you’re an independent driver now, you’re able to hold your own auto insurance plan. However, that doesn’t mean it’s smooth sailing! First, it’s always recommended to go for driving school courses during your G1 before moving to a G2. It’s excellent practice and insurance companies look favourably on this. Doing so can potentially lower your premiums!
It’s also best to keep in mind that you’re a beginner and a high-risk driver to most providers. They take this into account when deciding on insurance for you. With that being said, this can change over time in the form of lower rates. You just have to maintain a good driving record and gain regular experience. Once you move to a G-class licence, you’ll qualify for an insurance discount!
If you are the parent of a new G2 driver, you’ll need to add them onto your existing policy. This can be done by simply by contacting your isure broker, and from there, 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.
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, make sure it has both 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.
What happens next?
Once you surpass the 12 months of G2 training, you graduate to your G licence! A full licence that let’s you drive anywhere with any amount of passengers in the car. This 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, gradually decrease more if you maintain a clean record.
Any experienced driver knows the pain of high insurance rates when first getting that G1 and G2 licence. It’s important to maintain a clean driving record in order 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.