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Car Insurance for G2 Drivers: What you need to know

If you’ve passed your G2 test, first off, congratulations! You’ve passed Ontario’s second phase of licensing and you’re ready to hit the road. But, before you do, it’s important to make sure you have a great car insurance policy. A G2 license is the second phase of this process where candidates are expected to pass a road test. This license level is different from the G1 in many ways. Firstly, it comes with much more freedom than the G1. Furthermore, unlike the G1, a G2 license also requires drivers to be insured.

This page will explore what car insurance means for G2 drivers. This includes the types of insurance rates G2 drivers can expect, what it means to be a secondary driver on someone else’s policy and the rules you’ll have to follow in order to remain eligible for your insurance coverage.

 

What are the rules for driving with a G2 license?

While a G2 license gives you more freedom than a G1 license, there are still restrictions. To obtain lower car insurance rates and stay in good standing with your insurer, there are rules G2 drivers need to follow.

If you’re 20 years of age or older and hold a G2 license, you must abide by three legal restrictions:

  • Your blood alcohol level must be 0%.
  • You cannot carry more passengers in the vehicle than there are seat belts.
  • You can only drive G-class vehicles (this excludes motorcycles and transport trucks, which have their own licensing processes).

If you’re 19 years of age or younger and hold a G2 license, you must abide by these legal restrictions:

  • You must drive with a blood alcohol level of 0%.
  • You cannot carry more passengers in the vehicle than there are seat belts.
  • You can only drive G-class vehicles.
  • In the first six months of holding a G2 license, drivers are only allowed to carry one passenger ages 19 or under if driving between midnight and 5 a.m.
  • After the first six months of holding a G2 license or after reaching age 20, drivers are allowed to carry three passengers aged 19 and under if driving between midnight and 5 a.m.
  • Passenger rules don’t apply if a fully licensed driver (G license) with more than four years of experience accompanies the G2 driver or if the other passengers are family members.

How can I get cheap car insurance as a G2 driver?

While insurance rates for G2-level drivers will probably still be more expensive than experienced drivers, there are some things you can do to get a more competitive rate.

Take a driver’s education course: Many insurance companies will give young drivers a better rate if they take a driver’s education class prior to being licensed. This indicates to insurance companies that you’re taking responsibility for learning the rules of the road.

Maintain a high GPA: If you’re still in school, maintaining good grades goes a long way toward showing insurance companies that you’re responsible in the other areas of your life. To insurers, this makes it more likely that you’ll be a responsible driver too.

Be a safe driver: Driving safely when you’re younger will always benefit you down the line. Your premiums will begin to go down once you hit 25, but you’ll see greater savings if you’ve been a safe driver throughout your young adult life.

What are the average insurance rates for G2 drivers?

Overall, new G2 drivers pay higher insurance rates because of their lack of driving experience—especially if you’re under age 25. However, your exact insurance premiums will also depend on where you live, your gender, how much you drive, the make and model of the vehicle, and the type of coverage and limits you choose for your policy.

If you’re a parent of a G2 driver who uses your car, you’ll need to add your child to your car insurance policy. Failing to do so could mean that if your child gets into a car accident, damages and medical costs won’t be covered under your policy. Failing to inform your insurance company that a driver with a G2 license—or any additional driver—will be using your vehicle could also result in a cancellation of your policy altogether.

Unfortunately, adding a G2 driver to an existing policy will likely increase your premiums. This is because a G2 driver is still in the learning phase, and insurance companies take driving history into account when calculating car insurance premiums.

The make and model of a vehicle also affects the cost of auto insurance premiums. Insurance companies get very granular, and analyze existing claims data to determine how likely it is that your exact make and model of vehicle will be involved in a claim, and how much it will cost. Because insurance for G2 drivers can be more expensive, you’ll want to compare quotes from different providers to make sure you’re getting the right coverage for your budget.

Your questions about car insurance for G2 drivers, answered.

What does it mean to have a G2 license?

In Ontario, there are three stages to the licensing process. These stages include the G1, G2 and G licenses. You earn your G1 license when you pass the written portion and the first stage of the licensing exam. A year later, or shorter if you’ve enrolled in a driver’s education course, candidates are allowed to take the second portion of the licensing exam, the road test. Upon passing this exam, drivers will be awarded a G2 license.

After you’ve held your G2 license for a year, you’ll be eligible to take your stage three driving test. After passing this exam, you’ll be awarded a full, unrestricted G license.

Do G2 drivers need car insurance?

Yes, it’s required by provincial regulations that you must hold car insurance, even if you drive infrequently. If a child in your household has recently attained their G2, your insurance company must be notified and they must be listed on your car insurance policy as a potential driver.

In addition, the sooner you’re listed on an insurance policy as an occasional driver, the more time you’ll have to build up an insurance history. This may help you down the line when it comes time to get your own car insurance policy.

What is a secondary or occasional driver?

An occasional or secondary driver is an individual who regularly drives a vehicle, but isn’t the most frequent driver. An occasional driver is often a child of an adult driver who is added to a car insurance policy after obtaining their G2 license. Other examples of a secondary driver include a spouse who uses the vehicle to drive errands, roommates who regularly use the vehicle, other family members, etc.

Secondary drivers are protected under the same coverage as the primary driver on the policy. The main change policy-holders will see is an increase in their insurance premiums as a result of adding an additional driver to the contract. Whether or not this increase is large will depend on the experience of the driver being added. An experienced driver with a clean record, for example, will result in a smaller increase in your insurance premiums than a G2-licensed driver.

All drivers in a household who hold active licenses and share one vehicle should be listed as occasional drivers on that family auto insurance policy.

Are the licensing systems of other provinces and territories different?

Yes, the licensing system differs from one province to the next. For more information on how the licensing system works in different provinces, feel free to check out our auto insurance provincial pages here.

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