How novice drivers can save on Ontario car insurance premiums

How novice drivers can save on Ontario car insurance premiums


The cost of living in Ontario is soaring due to inflation, and auto insurance accounts for a large part of it. New drivers who have just arrived in Ontario, since they do not have local driving and insurance experience, the cost of car insurance is much higher. So today we discuss how novice drivers can effectively reduce the cost of car insurance, helping you to save more on living expenses.

1. Plan Your Housing Location and Vehicle Type/Model

If you have just arrived in Ontario and are planning to move to a new residence and buy a new vehicle, you can compare the premiums of different options before buying a new car and moving. The place of residence and the model of car have a great impact on the premium, including the accident rate and crash rate of different regions and car models. Therefore, before buying a car, you can try to compare and choose a car with a lower premium, or consider moving to a location/area with lower insurance costs.

2. Beginner Driver Education Courses

Before enrolling in driving lessons, novice drivers can take Beginner Driver Education Courses, which are sometimes called “General Course Certificate” or “Insurance Class” in Chinese. After obtaining the course certificate, not only can you get a premium discount of up to 15% from the insurance company, but also the waiting time for G1 to G2 exams can be shortened from 12 months to 8 months, and novice drivers can start driving faster.

3. Consider “Third Party Insurance” Only on Used Vehicles or Older Vehicles

If a novice driver buys a used car, and the value of the car is low, he/she can choose to buy only “third party insurance”. The difference between full coverage and third party insurance can be found in What are Full Coverage and Third Party Insurance? for a detailed introduction.

4. Install the Mobile App

Some auto insurance companies provide mobile applications for driving habits. Installing these mobile applications not only get a 10-20% discount on auto insurance premiums, but also remind drivers of bad driving habits, such as frequent braking and speeding. . If the novice driver has good driving habits, some insurance companies can offer a bigger discount when the driver renews his car insurance in the coming year.

5. Install Winter Tires

It snows frequently in Canada during winter season. Installing winter tires can effectively ensure the safety of cars and drivers and you can also get a discount from insurance companies.

6. Increase the Deductible

If you don’t want to buy third party insurance and want to get more affordable full coverage car insurance, you can choose to increase the deductible. The higher the deductible is, the lower the premium will be. For details, you can ask your insurance broker.

7. Buy Home and Auto Insurance from the Same Insurance Company

If a novice driver buys home insurance and auto insurance from the same insurance company, they can get a “Multi-line Discount”. You can build a good score for future home insurance by buying home insurance or tenant insurance early. Keep in mind, the better your credit score, the more affordable your home insurance will be. Multi-line Discount can get up to 15% discount, which is cheaper than buying car insurance separately, so it is recommended to buy car insurance and home insurance from the same company at the same time to save more on premiums.

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