How much is insurance for a new driver?
New drivers in Ontario can expect to pay a significant premium for car insurance in their first few years behind the wheel. Our data shows an average annual premium of $2,260 for first-year drivers, gradually decreasing to $2,106 by year eight.
Across the eight-year period, the average annual premium for new drivers in 2025 sits at $2,205, highlighting the substantial initial investment new drivers face, although this cost can decrease with accumulated driving experience and a clean driving record.
| Years licenced |
Average annual premium |
| 1 |
$2,260 |
| 2 |
$2,258 |
| 3 |
$2,249 |
| 4 |
$2,233 |
| 5 |
$2,210 |
| 6 |
$2,180 |
| 7 |
$2,142 |
| 8 |
$2,106 |
| Average rate |
$2,205 |
*
Cost for new drivers by age
New driver car insurance costs decrease with age. The most expensive insurance is for those aged 20-30 (around $2,646 annually), gradually dropping to $1,830 for drivers 50 and older.
Here is an overview of costs for new drivers by age who have been licenced for one year:
| Age |
Average New Driver Insurance Cost |
| 20-25 |
$2,646 |
| 25-30 |
$2,643 |
| 30-35 |
$2,504 |
| 35-40 |
$2,367 |
| 40-45 |
$2,288 |
| 45-50 |
$2,107 |
| 50+ |
$1,830 |
*
New driver rates by driver types
Car insurance premiums vary significantly depending on driver characteristics. Young drivers (25 and under) pay the most, at $2,813 annually ($234 monthly), while mature/senior drivers (50+) pay the least, at $1,763 annually ($147 monthly).
Gender also impacts cost, with women paying less ($2,061 annually) than men ($2,293 annually).
A clean driving record is cheapest ($2,217 annually), while accidents and tickets significantly increase premiums, with accidents costing the most ($2,834 annually).
| |
Premium |
Monthly payment |
| Driver type |
| All drivers new drivers |
$2,217 |
$185 |
| Young drivers (25 and under) |
$2,813 |
$234 |
| Middle age (26 - 50) |
$2,348 |
$196 |
| Mature/senior drivers (50+) |
$1,763 |
$147 |
| Demographics |
| Male |
$2,293 |
$191 |
| Female |
$2,061 |
$172 |
| Married |
$2,200 |
$183 |
| Single |
$2,255 |
$188 |
| Driving record |
| Clean driving record |
$2,217 |
$185 |
| 1 ticket within first year |
$2,551 |
$213 |
| 1 accident within first year |
$2,834 |
$236 |
| 1 cancellation within first year |
$2,597 |
$216 |
| 1 suspension within first year |
$2,417 |
$201 |
**
New driver rates by city
Car insurance premiums for new drivers in Ontario vary considerably by city. Brampton has the highest average annual premium at $2,996 annually, while Burlington has the lowest at $1,777 annually.
Other cities with relatively high premiums include Mississauga ($2,456 annually) and North York ($2,638 annually), while Ottawa ($1,686 annually), Guelph ($1,980 annually), and Oakville ($1,908 annually) offer some of the most affordable rates.
| City |
Avg Premium |
Monthly |
| Ontario |
$2,217 |
$185 |
| Toronto |
$2,235 |
$186 |
| Ottawa |
$1,686 |
$141 |
| Hamilton |
$2,239 |
$187 |
| Mississauga |
$2,456 |
$205 |
| London |
$2,066 |
$172 |
| Kitchener |
$2,038 |
$170 |
| Brampton |
$2,996 |
$250 |
| Guelph |
$1,980 |
$165 |
| Markham |
$2,398 |
$200 |
| Barrie |
$2,187 |
$182 |
| Oshawa |
$2,238 |
$187 |
| Burlington |
$1,777 |
$148 |
| St. Catharines |
$1,793 |
$149 |
| Newmarket |
$2,018 |
$168 |
| Richmond Hill |
$2,411 |
$201 |
| Milton |
$2,214 |
$185 |
| Cambridge |
$2,061 |
$172 |
| Oakville |
$1,908 |
$159 |
| Whitby |
$1,999 |
$167 |
| Ajax |
$2,399 |
$200 |
| North York |
$2,638 |
$220 |
**