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Understanding Age and the Cost of Car Insurance in Ontario

Driving is a privilege, an expensive privilege. Especially in Ontario. Yet in most areas of Ontario, you need to drive to get where you’re going. And, obviously, to drive you need insurance.  So what factors come into play that affect your car insurance rates? The car you drive for one. Also, where in Ontario you call home. And, of course, your driving history and your age. 

One of the advantages of getting older is that you pay less for auto insurance (generally), and one of the disadvantages of youth is that you pay (a lot) more for car insurance. But that doesn’t mean you can’t afford to drive – not with a Hero on your side!

In this post, we’ll look at how and why your age affects the amount you pay for auto insurance policy and what you can do as a young driver to lower your costs (hint: by being here, you’re already off to a good start!).

The Cost of Auto Insurance for Adults

When it comes to determining auto insurance rates and analyzing all the contributing factors that go into calculating those rates, the bottom line of what’s being assessed and what the insurance companies are trying to figure out can be boiled down to one thing: risk.

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When an insurance company takes all your information into account including the type of vehicle you drive, your driving record, where you live, the amount of driving you do, your marital status, gender and your age, they use all that information to create a ‘risk profile’ that helps them determine how likely it is that they will have to pay out a claim on your behalf. 

This risk profile is then compared to driving statistics that are gathered every year throughout the insurance industry by associations and each individual insurance company. These statistics help insurance companies pinpoint where it is they spend the most money and, by extension, who they should be charging the most for their vehicle damage protection.

 When determining the cost of auto insurance for adults, over the years insurance companies have learned that, generally speaking, as people age and mature, they make fewer claims. This is based on a number of factors like:

  • With age and number of years on the road, we become more mature drivers and less likely to be involved in an accident.
  • Older Canadian drivers tend not to drive as recklessly as younger inexperienced drivers as they are generally less impulsive.
  • As people become older, they get married and start families which makes them more cautious and less likely to take risky chances when driving.

Click here and get an online quote for Ontario Car Insurance in minutes or call us at 1 (855) 777-4376

For those reasons, you’ll find that insurance rates drop dramatically once a driver turns 25 years of age and that insurance rates for drivers over 40 years old are usually even cheaper.

The Cost of Car Insurance for Youth Drivers

On the flipside, when it comes to young drivers, the statistics show the opposite is true when considering potential risks and the likelihood of claims.

Young and newly licensed drivers have less driving experience and the statistics show that:

  • Teenagers are more likely to be involved in a car accident risk
  • Younger drivers have a higher percentage of accident-related injuries
  • Youth drivers are more likely to drive under the influence of alcohol and/or drugs
  • Younger drivers tend to be more impulsive, reckless and aggressive behind the wheel
  • Young adults are less likely to wear seatbelts
  • Young drivers are more likely to use cell phones when driving

Clearly then, the cost of classic car collision insurance for youth drivers will be higher, significantly higher, than they are for older adult drivers. If you are a young driver, however, there is hope! Our Heroes are experts at scouring the earth (or at least the province) to find you auto insurance rates you can afford and saving you from the high prices of standard auto insurance.

Click here and get an online quote for Ontario Car Insurance in minutes or call us at 1 (855) 777-4376


  1. What’s the minimum legal driving age in Ontario?

The current minimum legal driving age in Ontario is 16 years of age. Although this hasn’t changed in a very long time you might want to double-check at this Ministry of Transportation page just in case.

  1. What should I know about car insurance in Ontario for students?

If you’re a student and are looking for tips on car insurance claim in Ontario, like how you can reduce the amount you pay for auto insurance as a student, here a few things you can do:

    • Take a valid driver’s training course.
    • Get your full G license. 
    • Get listed on your parents’ policy even if you’re not driving or only driving occasionally. The longer your history of having auto insurance without a claim, the lower your rates will eventually be. Also, auto insurance for an occasional or a secondary driver is generally cheaper than it is for a primary driver.
    • If you are buying your own car, check out our page on Cars with the Lowest Insurance Rates.
    • If you buy an older car, say a car over 10 years old, consider only getting the mandatory insurance coverage.
    • Ask your Insurance Hero about discounts – like a Good Student discount and discounts for winter tires.
    • Consider signing up for telematics, aka usage-based insurance, which is an app or a device that measures your driving behaviours like acceleration, braking and cornering and can save you money for good driving.
  1. What should I know about car insurance for high-risk drivers?

The first thing you should know is that you’re in the right place! The Insurance Hero mission is to save drivers from the high cost of auto insurance – including high-risk drivers. Not every liability insurance company can provide insurance for high-risk drivers, or offer it at good rates, but we can. Visit our High Risk Auto Insurance page for more information.


  1. Is usage-based insurance available in Ontario?

Yes it is! Telematics, or usage-based insurance, is available in Ontario and it can help you reduce the average cost of your valid auto insurance. When you sign up for a telematics program, you download an app or install a device in your vehicle that monitors how you drive by measuring acceleration, braking and cornering speeds, among other things. It goes without saying (or it should) that if you drive safely, you can be rewarded with lower insurance rates.

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