How does Ontario’s graduated licencing system work?
Before we dive into mandatory car insurance coverage for G2 drivers in Ontario, let us first explain how the province’s graduated licencing system works. Ontario has three levels to its licencing program: G1, G2, and G.
- Level one: After you pass a written test that tests your knowledge of the road, you will be granted a G1 license.
- Level two: You will be granted a G2 licence only once you successfully complete the G2 road test, which can be taken no sooner than eight to twelve months after you obtain a G2 licence.
- Level three: You will receive a full G licence once you pass your second road test, the G road test (which includes highway driving).
The G2 road test
Passing the G2 road test requires regular practice and careful preparation. The first step to taking the G2 road test is booking it. This can be done over the phone, online, or in person at a DriveTest Centre in Ontario. Keep in mind that you are only eligible to book a G2 road test if you are a G1 licence holder that received your G1 twelve months prior (or eight months prior if you completed an approved driving program).
On the day of the test, bring a car with you (it can be a family member’s car or even a driving instructor’s car) and arrive at the DriveTest Centre 30 minutes before your scheduled appointment. Have the necessary documents ready and wait for your name to be called.
When your name is called, you will follow the examiner outside and lead them to your vehicle. From there, the examiner will explain what to expect and the test will commence. The purpose of the G2 road test is to assess your basic driving skills and comfort level at driving on non-highway roads.
Therefore, during the test, you should expect to perform maneuvers like parking, reversing, parallel parking, turning (including three-point turns), stopping, passing, changing lanes, and more. As you complete these maneuvers, the examiner will assess your ability to follow the rules of the road and practice safe driving behaviour.
The G2 road test will last approximately 20 minutes, and once you’re safely back in the parking lot and the engine is off, the examiner will inform you of your grade (pass or fail). Please note that the fee for the G2 road test is included in your G1 licence packaging, which is valid for six years from the date of payment. If you fail your first G2 road test, you will need to pay $53.75 each time you need to retake it.
G2 driver’s licence restrictions
By now, you are probably familiar with Ontario licence restrictions, especially since you would have been subject to several as a G1 driver. Now that you are a G2 licence holder, there are fewer restrictions but still some to be aware of.
As with your G1 licence, your blood alcohol level must be zero at all times while driving. Similarly, you are prohibited from driving with any cannabis or drugs in your system. G2 drivers are also personally responsible for ensuring that all passengers in their vehicles are wearing seatbelts while the car is on.
Furthermore, during the first six months of holding your G2 licence if you are 19 years old or younger, you can only carry one passenger who is 19 years old or younger. After six months or when you turn 20, whichever comes first, you can carry up to three passengers in your vehicle who are 19 years old or younger.
What to do after you pass the G2 road test
Congratulations - you’ve passed the G2 road test! Now you’re officially a G2 driver. What you should do is as follows. First, carefully read through the restrictions and limitations for G2 licence holders to ensure you comply with them at all times. Second, notify your insurance provider that you’ve completed your G2 test, as you might receive a discount on your premium for achieving this milestone.
Once you’ve notified your insurance company and confirmed you are covered, it’s time to hit the road. With this new level of freedom, driving has probably never been more exciting. Driving regularly can help you hone your skills while allowing you to practice before you take the final G road test.
Is car insurance mandatory for G2 drivers?
Yes, car insurance is mandatory for G2 drivers in Canada. If you failed to purchase insurance after passing your G1 test, make sure you purchase insurance this time around. If you don’t own your own vehicle but live in a household with one, you can probably be added to their existing auto insurance policy. Before hitting the road as a G2 driver, make sure you have the necessary coverage. Remember that driving without car insurance is illegal in Canada. Contact BrokerLink to learn more about car insurance requirements for G2 drivers in Ontario.
How much does car insurance cost for G2 drivers?
The cost of car insurance for G2 drivers varies significantly in Ontario. This is because insurance providers consider many factors when calculating insurance premiums, such as a driver’s age, claims history, gender, marital status, annual mileage, driving experience, driving record, the make, model, and year of the vehicle they drive, and more.
Furthermore, whether the G2 driver is insuring their own vehicle or being added to another driver’s policy can also impact the cost of insurance. That said, you can generally expect your insurance premium as a G2 driver to be relatively high since drivers under the age of 25 tend to pay the most for car insurance. The good news is that your insurance premium will likely drop by a small percentage (usually around 10%) when you graduate from a G2 licence to a G licence.
How much can I expect my insurance premium to drop when I go from a G1 to a G2 licence?
There is no set amount that your insurance premium will drop. However, most G2 drivers enjoy insurance savings of up to 10% as they progress through the system. The same goes for when you graduate from a G2 to a G licence holder.
Mandatory car insurance coverage for G2 drivers
Car insurance is mandatory for all drivers in Ontario. So once you’ve earned your G2 licence, you will need to ensure you are covered. And not just any coverage will do. Rather, your auto insurance policy must comply with the minimum coverage requirements set by the province. In Ontario, four types of coverage are mandatory and they are detailed below:
Third party liability coverage
Third party liability coverage provides legal protection if you injure someone else or cause property damage to another person’s property on the road. This type of coverage can help pay for medical expenses associated with bodily injuries or repairs of damaged cars, as well as any applicable legal fees and settlements up to the coverage limit. In Ontario, G2 drivers are required to hold a minimum of $200,000 in third party liability coverage at all times.
Direct compensation - property damage coverage
Direct compensation - property damage coverage protects an insured vehicle and its contents against property damage, so long as the policyholder is not at fault for the collision that caused said damage. Under this type of coverage, the insurance provider typically pays for the repair or replacement of your car directly.
Note that to be eligible for direct compensation coverage, the collision must meet the following circumstances: it occurred in Ontario, it involved more than one vehicle, and it involved at least one vehicle that participates in the province’s car insurance program.
Uninsured automobile coverage
Uninsured automobile coverage is designed to protect you and any passengers in your vehicle if you get into a collision with an at-fault driver who is either uninsured or underinsured. This type of coverage can also protect the policyholder in the event of a hit-and-run.
Accident benefits coverage
If you, a passenger, or a pedestrian requires medical attention following a collision, accident benefits coverage can help. This type of coverage is provided no matter who was at fault for the accident and it can help cover a wide range of medical expenses like prescription medications, physical therapy, or rehabilitation, as well as loss of income.
Optional auto insurance coverage for G2 drivers
You only need to purchase a standard car insurance policy to hit the road in Ontario. But G2 drivers might find additional coverage worthwhile. Below is a list of some of the most popular optional coverages for G2 drivers:
If you get into an accident with another vehicle or object on the road, no matter who is at fault for the accident, collision coverage can help cover the costs. Under the collision coverage section of your policy, you can receive compensation to help pay for any property damage that resulted from the accident, such as a damaged car.
G2 drivers may find comprehensive coverage worthwhile. This optional type of coverage protects against a wide range of circumstances other than collisions. Sometimes referred to as parked car insurance, comprehensive coverage will compensate you in the event of damage caused by an insured peril. Examples of insured perils are theft, vandalism, water damage, fire, riots, falling objects, and more.
Accident forgiveness coverage
One final type of optional car insurance coverage popular among G2 drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim.
Note: coverage varies by province.
Get G2 car insurance with BrokerLink
Are you ready to purchase G2 car insurance? Contact BrokerLink today. We know the ins and outs of the auto insurance industry and will ensure you find a policy that is both affordable and complies with Ontario law. We can also let you in on the industry’s best-kept secrets for saving money on new driver car insurance. Give us a call or request a free car insurance quote online to get started.
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