How could your teenager’s G1 license impact your insurance premiums in Ontario?


Young drivers aged 16 to 25 usually pay more for auto insurance than any other age group. So, if you are the parent of a teenager, it’s easy to assume that your teen’s G1 license might affect your own car insurance rate. But this is not necessarily the case. In fact, adding a driver with a G1 license to your auto insurance policy likely won’t increase your premium or require you to buy a separate high-risk auto insurance policy to cover them.

Here’s why your teenager’s G1 license might not impact your car insurance premiums in Ontario:

1. A G1 license is only a learner’s permit

The primary reason why your teen’s G1 license is unlikely to increase your insurance rate is because a G1 license is only a learner’s permit. As the first level in Ontario’s graduated licensing program, the G1 has many restrictions and conditions attached to it.

2. A G1 license demands constant supervision

Amongst other things, G1 license conditions clearly stipulate a fully licensed driver (someone who holds a class G license or higher) be seated in the front passenger seat of the car at all times. This companion must be sober, over the age of 18, have at least four years of driving experience as a fully licensed driver and must have a valid license that has not been suspended. This person also must be in a position to take over if the teen in question is unable to drive or is experiencing difficulties on the road.

3. A G1 license holder can buy a car, but not insure it in their name

Although there is nothing holding back a teen with a G1 license from buying a car, the listed primary driver for the car on any insurance agreement must be fully licensed. In the case that your teen is saving up for a car, keep in mind that this primary driver might be you.

4. A G1 license is the only level which may not affect your premium

Your teen affects your car insurance premiums once he or she obtains a G2 license level. Since they are now allowed to drive on their own, your auto insurance company treats a G2 teen as an independent driver. Factors like your teen’s age, limited driving experience and driving record are used when determining your new premium. Even one driving infraction could negatively impact this new premium, which is one more reason to encourage your teen to be a safe and conscientious driver at all times.

Here are some ways to prepare your teen for driving after their G1 license:

1. A G1 license is all about learning

The best thing you can do to help ensure that your auto insurance premiums don’t skyrocket when you add your teen to your auto insurance policy is to enroll him or her in a reputable driver education program. Successfully completing a driver education course can help secure a better insurance score and will in turn positively impact how your new rate is calculated., licensed by the Ministry of Transportation of Ontario, can tell you more about Ontario’s graduated licensing program.

2. Consider what car your teen plans to drive after their G1 license

Check with your car insurance company to learn more about the types of cars which will help keep your premium low when it’s time to add your teen to a policy. This information is of particular use to parents who own multiple cars or plan to purchase a car for their teen.

3. Consider shopping around while your teen has their G1 license

Just because your current car insurance policy works well for you doesn’t necessarily mean it is designed to accommodate your teen once they move on from their G1. Speak with a PC® insurance broker to explore options for insuring both you and your teen.

How to make a claim

Call 1-877-251-8656 to speak with a Claims Advisor.

Renewing your policy

Call 1-877-251-8652 for information regarding policy renewal.

Buying a new policy

Call 1-866-660-9035 for information on obtaining a quote.

Need help?

Take a look at the top 5 FAQs:

  • What are my choices in terms of auto coverage?

    What are my choices in terms of auto coverage?

    If you own or drive a vehicle in Canada, you must be insured. Different provinces have different requirements, but the four mandatory elements of auto insurance are:

    1. Liability - if you cause an accident and someone sues you
    2. Accident benefits - if you or someone in your vehicle is hurt in an accident
    3. Direct compensation – property damage (Ontario only)- if your vehicle gets damaged (and it's determined you're not at-fault or only partly at-fault)
    4. Uninsured motorist - if you're in an accident with an uninsured or hit-and-run driver
  • How do I reduce my insurance costs?

    How do I reduce my insurance costs?

    There are several things you can do to reduce your insurance premium costs:

    1. Work on your driving record
      Here's an easy, yet effective way to bring down your insurance costs: build a consistent accident and conviction-free track record with an insurance company.
    2. Choose your automobile wisely
      Do your research before you invest in a new car. Read consumer reports, and check with your insurance company to find out which cars tend to be targets for theft and vandalism. Remember, if you buy a car with a high theft rate, your premium will be higher.
    3. Adjust how you use your car
      By adjusting the way you use your vehicle, you can also bring down the cost of your insurance rates. If you live in a metropolitan area:
      • can you take the subway, train or bus to work?
      • has your job changed, or have you moved recently?
      • do you use your automobile to drive a short distance to work?
      • does your vehicle get used for low annual kilometers?
        If you answered yes to any of these questions, you may be entitled to lower insurance costs. Another consideration is whether you let others use your car. It is sometimes possible to exclude certain high-risk drivers from your policy so that good drivers are not penalized with a higher premium.
    4. Choose a higher deductible
      If you choose a higher deductible up front, your premiums will be lower.
    5. Review your coverage
      Take a closer look at your coverage to make sure you're not paying for things you don't need.
  • How can I earn PC Optimum points?

    How can I earn PC Optimum points?

    When you use your President's Choice Financial Mastercard to pay your PC auto insurance premium, you'll get 20 PC Optimum points per dollar of your premium.

  • Are other drivers insured to drive my car?

    Are other drivers insured to drive my car?

    Yes, as long as he/she has your permission to drive the vehicle, has a valid driver's licence and has not been specifically excluded from driving the vehicle. However, all licensed drivers in your household must be listed on your policy—regardless of how often they use your vehicle.

  • What is a deductible?

    What is a deductible?

    A deductible is the amount that you agree to pay towards the repair or replacement of your vehicle before your insurance pays the rest. You choose your deductible amount when you purchase your auto insurance. The higher your deductible, the lower your premium.

See all Auto Insurance FAQs


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