Does Car Insurance Go Down After Getting Your G Licence in Ontario?
Yes, most Ontario insurance companies reduce your premium when you upgrade from a G2 to a full G licence. The reduction varies by insurer, but a G licence signals full driving privileges and a completed learning period, which typically results in a lower risk rating and lower premiums.
Key Facts
- Call your insurer or broker immediately after getting your G
- Request a policy review and any applicable discounts
- Ask specifically whether a G licence changes your risk tier
- Check if you qualify for additional discounts (anti-theft, multi-car, etc.)
In this article
Does Insurance Generally Drop After Getting G?
According to the Financial Services Regulatory Authority of Ontario (FSRA), most Ontario insurance companies treat a full G licence as a lower-risk classification than a G2. The reasoning: a G licence holder has completed the full graduated licensing system, demonstrated safe driving for at least a year as a G2, and passed a more demanding road test. Insurers typically adjust premiums downward to reflect the reduced risk profile.
How Much Does Insurance Go Down?
The reduction varies significantly by insurer, your driving record, the vehicle, and your age. A young driver upgrading from G2 to G might see a 5 to 20 percent reduction in premium. Some insurers categorize new G licence holders in a slightly lower risk tier, while others offer a specific discount. Call your broker to ask what change to expect for your specific policy.
Do You Need to Report the Upgrade?
According to the Financial Services Regulatory Authority of Ontario (FSRA), most insurance policies require you to notify your provider when your licence class changes. Do not wait for renewal — call your insurer or broker as soon as you receive your G licence. Failing to report a licence upgrade can create a gap between your actual driving status and your policy terms.
- Call your insurer or broker immediately after getting your G
- Request a policy review and any applicable discounts
- Ask specifically whether a G licence changes your risk tier
- Check if you qualify for additional discounts (anti-theft, multi-car, etc.)
Do BDE Discounts Compound the Savings?
If you completed a BDE program before getting your G2, you may already be receiving an insurance discount for that. The G licence may provide an additional reduction on top of the BDE discount. Together, BDE completion plus a G licence can meaningfully reduce annual premiums for young drivers in Ontario.
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 answerDoes Your BDE Certificate Expire in Ontario?
No, a BDE (Beginner Driver Education) certificate does not expire in Ontario. Once you complete an MTO-approved BDE course, the certification is permanent. However, you must use it before your G1 licence expires to get the insurance discount and reduced wait time.
Read answerHow Much Does a BDE Course Cost in Ontario?
BDE (Beginner Driver Education) courses in Ontario typically cost between $600 and $1,000 depending on the school, location, and package. The course must include at least 20 hours of classroom instruction and 10 hours of in-car training. Completing an approved BDE course reduces your G1 holding period from 12 to 8 months and qualifies you for insurance discounts.
Read answerReady to Start Driving?
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