Newly licensed drivers pay more for car insurance than experienced drivers. This page explains why, how the graduated licensing stages affect coverage, and the steps that bring the cost down. For how age alone changes the price over a lifetime, see car insurance cost by age; our other guides are in the car insurance hub.
What new drivers pay
The published provincial averages, which cover all drivers and are measured differently from province to province, are on the average car insurance by province page, and a new driver’s premium is typically well above them. Your own quote depends on your city, vehicle, record and insurer. In BC, Saskatchewan and Manitoba the basic premium comes from the public insurer (ICBC, SGI or MPI), each of which rates drivers on its own scale. In Ontario, where you live has a large effect on the price; see car insurance in Toronto.
Why new drivers pay more
| Risk factor | Why it matters |
|---|---|
| No driving history | Insurers cannot verify that you drive safely |
| Age and years licensed | Insurers rate by age and by how long you have held a licence |
| No claims-free discount | Earned over years of clean driving |
| Licence class | Your current licence stage is a rating factor |
| Vehicle choice | Make, model and safety features affect the price |
Graduated licensing and insurance
Every province licenses new drivers in stages, and each stage changes how you are insured.
| Stage | Typical restrictions | Insurance |
|---|---|---|
| Learner (G1 in Ontario, L in BC) | Supervised driving only | Check with the insurer of the car you practise in |
| Novice (G2 in Ontario, N in BC) | Can drive alone, with conditions | Must be listed on a policy or hold your own |
| Full licence (G in Ontario, Class 5 in BC) | Full privileges (in BC, drivers who reach Class 5 through the driving record assessment introduced on October 19, 2026 first have a 12-month restriction period) | Rated on your full driving history |
In BC, the novice stage lasts at least 24 months of safe driving with no prohibitions, or 18 months for a driver who completed an ICBC-approved driver training course in the learner stage. From October 19, 2026, BC novice drivers with a clean record move to a Class 5 licence with restrictions through a driving record assessment instead of a second road test, and drivers aged 25 or older need at least 12 months of safe driving in the novice stage. The assessment also requires no convictions for excessive speed or electronic device use, and no prohibitions or suspensions, during that time.
How to lower the cost as a new driver
1. Take an approved driving course
Some insurers take approved driver training into account when setting a price, and in BC an ICBC-approved course taken in the learner stage can shorten the novice stage. Whether a course earns a discount, and how much, depends on the insurer, so it is worth asking before enrolling.
2. Be listed on a parent’s policy
Being listed as an occasional driver on a parent’s policy is one option to price against a standalone policy. The listing has to be honest: naming a parent as the principal driver of a car you actually drive most (sometimes called fronting) misstates the application, and under Ontario’s standard policy an insurer can cancel a policy when information required in the application was knowingly misrepresented.
3. Choose a car that is cheap to insure
Insurers rate each vehicle on its make, model, year and safety features, so low theft rates, inexpensive repairs and good safety features bring the price down, while high-performance and frequently stolen models cost more. How insurers rate each model is explained in cheapest cars to insure in Canada.
4. Use telematics from day one
Many insurers offer usage-based insurance, an app or device that records how you drive and personalizes the premium. For a new driver, it can reflect safe habits before a claims-free history exists. Program names, eligibility and the size of any discount vary by insurer and province.
5. Keep the record clean
Every year without an at-fault accident or a major ticket builds the claims-free record insurers price on, and premiums generally fall with age and years of experience. How much, and when, depends on the insurer; in Saskatchewan and Manitoba, the public insurer’s safety rating scale sets the discount for each clean year. How premiums change with age is on car insurance cost by age.
6. Compare quotes
Insurers price new drivers differently, so comparing quotes for identical coverage matters as much for a new driver as for anyone. The general levers, including deductibles and bundling, are in our guide to lowering a car insurance premium, and Ontario-specific options are on cheap car insurance in Ontario.
Related reading
Back to: Canadian Insurance Guide
Sources
The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.