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How Is Car Insurance Calculated For Teen Drivers In Ontario


A teen getting a novice driver’s license is an important milestone in his life and great news for his family. Then, the parents call the car insurer to notify them and start wondering about the policy changes. In Ontario, it is much more expensive to have car insurance for teenagers than adults. There is no single formula to calculate the costs of car insurance for a teen. Any collisions or speeding tickets that teens are likely to get are also a reason for high car insurance premiums.

There are many factors that insurance companies take into consideration to arrive at the car insurance premiums for the policy as per FSCO.

The Type Of Car You Drive:

  • The cost of the car, its maintenance, and replacement, the probability of the car being stolen or getting into a collision, etc. does matter. To get a risk score rating while shopping around for a car, it is a good idea to check out the “How Cars Measure Up” as per the Insurance Bureau of Canada based on the overall claims.


  • Teens up to the age of 25 years pay higher insurance premiums compared to those above the age of 25 years with a clean driving record.

Your Abstract:

  • Any accidents in which you may be more than 25% at fault, traffic violations, and citations on your driving record will also be considered while calculating the premiums.


  • The location of your work and living may change the math for your car insurance. If you live in an urban area you may pay higher rates than in small towns.

Coverage Amount :

  • As per law, teens also have to carry active insurance with mandatory coverage levels if they have to drive in Ontario. Optional coverage may be purchased too, but the more you buy you may end up paying more premiums.

Deductible :

  • It is a known fact that you may try to reduce your premiums by raising your deductibles. So while calculating your premiums, how much deductible you choose does matter.

Insurance Company :

  • The insurer you choose to get your car insurance from may also make a difference as the rates are not uniform and each insurer may vary in calculations. You may check our car insurance calculator to easily get the best deal as a teen in Ontario. Getting multiple quotes from our calculator will help you make an informed decision.

Average Car Insurance Cost for a 17-Year Old Male or Female in Ontario

As a matter of fact, the average insurance cost for teens in Ontario can range between unreasonable and outrageous. The statistics point out to teens are a high-risk category. Teenagers, male and female alike, may have aggressive driving habits that increase the risk of road accidents. According to (MADD), the leading factors for high teen-related motor accidents are a lack of experience, impulsiveness, and lack of sobriety while driving. Statistics show that 33% of teenage deaths are due to drunk driving. And most of these happen in the summer or during vacation. Young adults, male or female, at the age of 22, on average pay $2000 to $5000 annually on car insurance. Young people at the age of 17 are expected to pay more. The level of risk is matched against the price of the premiums.

Males are considered more aggressive drivers than females. 87% of teen fatalities involve male teenage drivers. Of those who received injuries but survived a crash, 89% were males. These numbers are alarming and as a result, teenage car insurance rates are very high. On average, teenage boys may pay around $4000 annually for car insurance while females may pay around $2700 annually for the same coverage in Ontario.

How Can Teens Save on Car Insurance in Ontario

There are many ways to reduce car insurance rates for teens.  It is a very good option to let the teenager gain training through a reputed driver’s education program. Below are the other options.

Good Academic Records

Insurance companies in Ontario may give you significant discounts if a teen maintains good scores both in high school and college. You may discuss with your insurer as some may require at least 12 credits. This is due to the reason that a good grade denotes responsibility and maturity that may also reflect on safe driving practices.

Drive A Safe Car

A teen may prefer to drive a trendy car to school but at the cost of high insurance. Instead, it may be wise to choose a car that has all the safety features like dual airbags, side airbags, an anti-lock brake system, and all the bells and whistles. Insurance companies offer a premium discount for high-quality and safe cars because the likelihood of a crash is much less.

Bundle Policies To Get Multi-Product Discounts

Insurance companies may reduce your teenager’s insurance rates if you may be able to bundle your car or home insurance policies through the same insurer. It is also very important to note that you may also have to share some risks along with the discount when you add a teen.

Increase Collision Deductibles

If you increase the collision deductibles, your insurance company may reduce your rates. This amount assures your insurer that you may not file a claim for petty amounts. This may also foster safer driving habits in the teen.

Changes When You Add a Teenager to Your Car Insurance Policy in Ontario


On average, adding a teen to your policy may raise the insurance cost. Some laws require you to purchase specific insurance coverage. Your teen is bound to have liability insurance coverage. Comprehensive coverage may also be a requirement if you will add your kid to your policy, particularly if your car is leased or financed. If you paid for the vehicle, it is your call to add or remove collision and comprehensive coverage. Again, if your child totaled your car, it is better to have this coverage so when you file a claim there are no surprises.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.