Does Car Insurance Go Down After Getting Your Full G Licence?
Yes, getting your full G licence typically reduces your car insurance premium. Fully licensed drivers are seen as lower risk than G2 holders, and you lose the novice driver surcharge. The reduction varies by insurer and your driving record, but most drivers see a meaningful decrease.
In this article
Why Does a Full G Mean Lower Insurance?
According to the Financial Services Regulatory Authority of Ontario (FSRA), insurance companies use your licence class as a risk indicator. G2 drivers are statistically more likely to be involved in collisions than fully licensed drivers, so insurers charge higher premiums. When you upgrade to a full G licence, this novice driver risk category no longer applies. Your rate reflects your actual driving record instead.
How Much Can You Save on Insurance?
The savings vary significantly between insurance companies and depend on your driving record, the car you drive, your age, and where you live. For young drivers in Ontario, where premiums can be $3,000-$6,000 per year on a G2, upgrading to a full G can reduce premiums by 10-25% in many cases. Ask your insurance provider for a quote comparison before and after your G test.
Does BDE Add Savings on Top of the G Licence?
According to the Financial Services Regulatory Authority of Ontario (FSRA), if you completed a BDE course, you already receive an insurance discount of 10-15% as a G2 driver. When you upgrade to a full G licence, the BDE discount continues to apply. The two savings stack: you get the novice driver surcharge removed plus retain your BDE discount, resulting in a lower overall premium than either savings alone.
When Does the Reduction Take Effect?
Contact your insurance company as soon as you receive your full G licence and ask them to update your policy. Some insurers update your rate at your next renewal period, while others can apply the change immediately. Do not wait for the insurer to contact you. Proactively reporting your upgraded licence ensures you start saving as soon as possible.
What Are Other Ways to Lower Your Rate?
Beyond getting your full G, several other factors help reduce your insurance costs. Maintaining a clean driving record (no at-fault accidents or convictions) has the biggest impact over time. Adding winter tires also qualifies for a discount with most insurers in Ontario. Shopping for better rates at renewal and bundling home and auto insurance can generate additional savings.
Related Questions
Is Driving School Worth It in Ontario?
Yes, driving school is worth it in Ontario for most new drivers. A BDE course reduces your G1 waiting period from 12 to 8 months, provides a 10-15% insurance discount that saves thousands over time, and significantly improves your chances of passing the road test on the first attempt.
Read answerHow Much Does Driving School Cost in Ontario?
Driving school costs in Ontario range from $500 to $1,200+ depending on the program. A full BDE course costs $600-$1,000. Individual driving lessons cost $45-$70 per hour. Road test escort services are typically $100-$200. Prices vary by school and region.
Read answerWhat Is the Difference Between the G2 and G Road Test?
The G2 test covers residential driving and basic manoeuvres at lower speeds. The G test adds mandatory highway driving, including merging, lane changes at highway speed, and exiting. The G test is approximately 30 minutes vs 20 minutes for the G2 and requires a 12-month wait after getting your G2.
Read answerReady to Start Driving?
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