New Report Details Why Young Drivers Face Steep Insurance Premiums

A new report published by Rates.ca, a website specializing in insurance quotes, highlights shocking data concerning young drivers.

Male drivers under 25 are 73% more likely to have a major traffic violation on their record than older drivers. Among young female drivers, the proportion decreases but remains high at 53%.

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Overall, young drivers under 25 are 66% more likely to have received a speeding ticket than older ones and 17% more likely to have been involved in an accident (among reported accidents).

As a result, their car insurance premiums can be insanely steep. According to Rates.ca, a 20-year-old male in Toronto with very little driving experience and no claims can pay up to $13,418 per year to insure a late-model Honda Civic (about half that for the same person living in Montreal, according to our research). For a young female with a similar profile, it's up to $9,607 per year.

The premiums can be substantially reduced by completing driver training, which is not mandatory in Ontario but is in Quebec, for instance. That young Toronto driver we just talked about? Rates.ca says they could save around $2,000 just by completing a MTO-approved drivers training course.

Car insurance experts recommend avoiding sporty and/or modified vehicles, which pose a greater risk, as well as cars frequently sought after by thieves. As we saw last week, the Civic is among the top 10 most stolen vehicles in Canada.

The best scenario for a young driver who cannot or does not want to use public or alternative transportation is to be insured on a parent's vehicle and accumulate driving experience, without any infractions or claims, until the age of 25.

“For every year you can demonstrate you’ve been driving, that’s an indication to an insurance company that you’re a much lower risk,” Rates.ca’s insurance expert Daniel Ivans told CTV News.