What Will It Cost To Add My G2 Licensed Teenager to My Insurance Policy?
December, 6 2021
Having a licensed teenager in your home can be anxiety-inducing for any parent, especially when it comes to the price of your auto insurance. We have all heard horror stories of prices skyrocketing once your teenager gets their license and is added to your policy. But how bad is it, really? Read on for a breakdown of all you need to know about G2 drivers and auto insurance in Ontario.
What Is a G2 License?
To obtain a driver’s license in Ontario, an individual needs to pass a series of tests. There is a graduated license system where each license level provides certain privileges until the driver graduates to a full G class license.
The G1 class is the first type of license a driver obtains. They must be at least sixteen years old and pass a written test and eye test. This G1 license is usually carried for at least twelve months before a driver can schedule their first road test. Upon successful completion of this road test, a driver will then graduate to a G2 license.
A driver must hold the G2 license for twelve months before taking the second road test. The purpose of this second road test is to assess more advanced driving techniques such as parallel parking or highway driving. Once a driver passes this test, a full G class license is issued.
Do I Need To Add My Teenager to My Insurance?
Most auto insurance companies will allow you to add a G1 driver onto your policy at no cost to you. This will allow the driver to gain tenure at an insurance company which can potentially help with rates later on.
But once your teenager obtains their G2 license, they are required to be added as a driver on your auto insurance policy. This is especially true if they are using one of your cars.
How Much Will It Cost?
The price of auto insurance in Ontario will vary by company and the specifics of each policy, such as the type of car you own. But in general, the average cost of insurance for a G2 licensed driver is about $2,400 a year or $200 a month. The reason it will be more costly to add them onto your policy is due to their inexperience. Drivers with less experience on the road are more likely to get into accidents and are therefore more expensive to insure. But here are some things you can do to help with the cost.
More auto insurance carriers are starting to offer usage-based or telematics insurance. These types of policies base the price of your insurance on how well and how often you drive. Companies will typically offer you a discount at the start of your policy, and the discount can increase based on your driving behavior on the road. This is an excellent solution for G2 drivers since the discounts will give them an incentive to drive safer, and parents will love saving money!
There are a few reasons why a new driver may want to take an MTO-approved driver’s training course. The first and most obvious reason is that driver’s training courses will teach inexperienced drivers to be safer on the road. Fewer accidents or violations may mean lower insurance rates, especially in the case of usage-based or telematics-based policies.
Additionally, another benefit to driver’s training courses is that most insurance companies offer discounts for completing them. The discount can vary depending on the company, but it is generally about 10%.
Lastly, G1 drivers who take a driver’s training course approved by the Ministry of Transportation can take their first road test at eight months instead of waiting for the standard twelve. This is a considerable benefit since graduating to a full G class driver’s license can lower your insurance rates. The sooner you can get your G class license, the sooner your rates will go down.
Besides a driver’s training discount, most auto insurance carriers in Ontario will offer additional discounts for qualifying customers:
If you purchase and install winter tires for your vehicle, your auto insurer can provide you with a discount. The discount ends up being about 5% off your collision coverage but is worth looking into to save a little extra.
Some insurance companies also have affiliate programs through various groups. If you are a member of a specific group that offers this, you may be able to get discounts on your auto insurance. For example, the Electric Vehicle Society offers discounts for electric vehicle car owners in Ontario.
There are also some schools and employers who will offer group discounts for employees or alumni. The discounts can be significant in some cases, so they are a great way to save additional money with a G2 licensed driver on your policy.
Another factor in the price of your insurance is the type of car you drive. Once your teenager starts the process of getting their license, it is also a good idea to start looking at cars. The best cars for inexperienced drivers are rated highly for safety but are common enough where replacement parts are readily available if needed. Some examples of cars that will be less expensive to insure are the Hyundai Elantra, Nissan Versa, or Toyota Prius.
How Can I Learn More?
To learn more about G2 licensed drivers or how to save on your auto insurance in Ontario, contact the experts at Duliban Insurance. They are licensed and ready to help you determine the best insurance for your teenage driver. Call or email them today!