Saving on car insurance with driver’s education

Navigating the road as a new driver often comes with the unwelcome surprise of higher insurance rates. It’s a discouraging reality for those who are just beginning to hone their skills behind the wheel. 

Enrolling in a driving school could be an excellent solution – both to lower your insurance rates and to sharpen up your skills.  

New drivers are typically viewed by insurance companies as being at higher risk of accidents than drivers with more experience behind the wheel. The risk is highest during the first year of driving and decreases with each year spent gaining driving experience.  

New drivers, especially teenagers, pay more for their insurance as a result. The best way to bring down your rates is to demonstrate to your insurance company that you’re a good driver. Experience takes time, but you can also enroll in a driver’s education course to show your insurer that you have what it takes to be a good driver.  

What if you’re not a new driver but are still seeking a way to demonstrate your skills? Unfortunately, if you’ve been licensed for several years and opt to take a driving course for any reason, you wouldn’t qualify for a credit (at least in Ontario) from your insurance company. The insurance credit is only applicable to new drivers who have been on the road for three years or less. 

Most, if not all, car insurance companies provide credit for driver training. This credit allows drivers with less than three years’ experience to start with a driving record equivalent to three years’ experience. They’ll maintain this status until they reach the actual three-year mark, at which point the years will increase normally.   

With the way the credit works, it makes the most sense for new drivers to take the course. Newly licensed teens are ideal candidates, as this can give them a head start on cheaper insurance but, again, it doesn’t apply for drivers who have already been licensed for four years or longer. 

Every province has different requirements, and some provinces don’t offer direct insurance discounts for completing driving school. British Columbia, Manitoba, Nunavut, Quebec, Saskatchewan, the Yukon and the Northwest Territories all do not offer formal discounts for completing driver’s education courses. 

Ontario drivers must complete a Ministry of Transportation (MTO) approved Beginner Driver Education course to qualify for an insurance discount. Insurance companies will likely want to see physical evidence of the driver’s history report from the MTO to ensure that the course was passed and that it was accredited. You can find a list of MTO-approved driving courses here.   

The way insurance companies price your insurance all relates back to risk. If you’re viewed as a driver likelier to get into an accident due to your individual statistics, like your age, driving experience, where you live, or even how often you’re on the road, you’ll pay more. Taking a driver’s education course or enrolling in driving school makes you safer from the perspective of an insurance company.  

Ontario’s G2 exam has a 50-60% passing rate, so many individuals who take it will end up doing so multiple times just to pass. Many of us who prepared for our G2 did so with friends and family, and while having lots of experience behind the wheel is always a good idea it’s not as beneficial as having a trained driving professional teaching you the best techniques. 

Drivers who complete an MTO-approved driver’s education course learn valuable skills that = help them avoid getting into/causing accidents and make the roads overall a safer place to be. Plus, did you know that completing an approved driver’s course allows you to take your G2 test sooner? You can get your G2 as soon as 8 months after completing a driver training program.  

It varies by insurance company. As the discount is less of a straight percentage from your current insurance premiums than it is a change in how insurers view your experience, it really depends on who your provider is and how they rate drivers with three years’ driving experience. You can expect a discount of between 10-20%.  

Be wary of driving schools and programs that boast a “superior insurance discount.” Driving schools and programs do not have any sway in the amount of savings a driver will receive, and oftentimes insurance companies won’t even differentiate between programs – so long as it’s MTO approved, and you have the evidence of your passing. Plus, these driving schools will likely charge you a lot more. 

Interested in learning more about potential discounts on your car insurance? Our team of insurance brokers is here to help. We have partnerships with dozens of car insurance companies in Ontario and can connect you with the one that best meets your needs. If you’re concerned about rates as a new driver, we can recommend all the best ways to save. Give us a call and request a free, no obligation quote today.