Graduating from a G2 to a full G licence is a major milestone for any Ontario driver. It marks the end of the "probationary" phase and unlocks full driving privileges. But more than just freedom on the road, this transition brings significant savings on auto insurance.
In Ontario, insurers use your licence class to help determine your risk profile. When you move to a G licence, your auto insurance provider reassesses your file. This upgrade often results in lower premiums, better eligibility for standard insurers, and access to discounts.
Ontario introduced the Graduated Licensing System in 1994. It helps new drivers gain experience gradually before facing complex driving scenarios.
| Licence Class | Key Features | Restrictions |
|---|---|---|
| G1 | Written test only; must drive with a fully licensed driver. | No driving alone, no highway driving (unless with an instructor), zero alcohol, and no driving between midnight–5 a.m. |
| G2 | Road test completed; allowed to drive independently. | Zero alcohol tolerance, passenger limits for drivers under 20 during nighttime, still considered high-risk by insurers. |
| G | Full licence with complete driving privileges. | No restrictions; fully recognized by insurance providers. |
Each step offers more freedom and responsibility. Your insurance premiums reflect this progression.
Your licence class has a direct impact on how insurers evaluate your risk. More driving experience and fewer restrictions signal lower risk.
| Licence Class | Ownership/Insurance | Risk Rating | Average Annual Premium |
|---|---|---|---|
| G1 | Cannot insure a vehicle independently; can only be added under a family policy. | Low risk (supervised driving). | No surcharge when added to an existing policy. |
| G2 | Eligible to insure a vehicle and drive independently. | High risk (new solo driver). | $3,000–$6,000 annually for young drivers in urban areas. |
| G | Full ownership and driving privileges. | Moderate to low risk (proven driving experience). | Typically 10–20% lower premiums compared to G2 drivers. |
Most Ontario insurers offer a discount once you upgrade to a full G. You become eligible for standard-market policies, accident forgiveness, and reduced surcharges.
While your licence class gives insurers a framework, your driving history builds the real story. A clean record combined with a G licence can unlock some of the best rates available.
| Factor | How It Affects Premium | Potential Outcome |
|---|---|---|
| Clean record (3+ years) | Maintains a lower base premium and demonstrates responsible driving behavior. | Qualifies for preferred rates and additional discounts. |
| Minor ticket (e.g., 15 km/h over) | Removes conviction-free or safe-driver discounts. | Premium may increase by 10% or more. |
| At-fault accident | Adds a surcharge to the policy due to higher perceived risk. | Premium may increase by 25–50%. |
| Accident forgiveness | Prevents premium increases after the first at-fault accident. | Typically available to full (G) licence holders with a clean driving history. |
Insurers reward good behaviour. A G licence with no claims or convictions often earns the driver lower rates and long-term savings.
If you are preparing to move from G2 to G, certain strategies can help you reduce your insurance costs even further.
| Strategy | Description | Potential Savings |
|---|---|---|
| BDE Course | Complete a ministry-approved driver education program to improve driving skills and risk profile. | 10–15% discount on premiums plus 4 months reduced wait time for licence progression. |
| Telematics (Usage-Based Insurance) | Monitors driving behavior through a mobile app or device, rewarding safe driving habits. | Up to 25% savings for safe and responsible driving. |
| Bundling | Combine auto insurance with tenant or home insurance under the same provider. | 5–10% discount on both policies. |
| Vehicle Choice | Select vehicles with lower claim frequency, repair costs, and theft rates. | Varies depending on the vehicle, potentially saving hundreds annually. |
| Higher Deductible | Increase the claim deductible (e.g., from $500 to $1,000) to lower insurer risk. | 5–10% reduction in premium costs. |
Use these tools to create a layered approach to savings. Each discount may seem small alone, but together they can reduce your premium by over 30%.
To qualify for the G road test, you must wait at least 12 months after receiving your G2. If you completed an approved BDE course, this wait remains 12 months, but the G1-to-G2 waiting period shortens.
| Requirement | Details |
|---|---|
| Wait Time | Must wait 12 months after obtaining a G2 licence before becoming eligible for the next road test. |
| Test Focus | Evaluation includes highway merging, lane changes, defensive driving, and advanced road safety skills. |
| Declaration | Applicants must confirm they have sufficient highway driving experience prior to taking the test. |
| Time Limit | All licensing stages must be completed within 5 years from the date of obtaining the G1 licence. |
Failing to move to a G within the five-year window may force you to restart the process. Once you pass, contact your insurance provider immediately to report your upgrade.
Many drivers assume their insurer will automatically lower their premium once they get the G. That’s not always the case. You need to advocate for yourself and explore other options.
| Method | Advantage |
|---|---|
| Compare Quotes Online | Instantly view and compare rates from multiple insurers to find the most competitive pricing. |
| Use a Broker | Gain access to hidden or specialty insurance markets that may not be available directly to consumers. |
| Check for Life Changes | Events such as marriage, a new job, or a change of address may qualify you for additional discounts. |
| Annual Review | Regularly reassess your policy as your risk profile changes to ensure you receive the best coverage and rates. |
Getting your G is the perfect time to re-evaluate your policy and possibly switch insurers. Loyalty does not always pay in the insurance world—comparison does.
Upgrading from a G2 to a G licence in Ontario is about much more than passing a test. It is a signal to insurers that you are experienced, responsible, and lower-risk.
By completing this milestone, keeping a clean record, and using smart strategies, you can reduce your insurance premiums by hundreds—or even thousands—of dollars each year. Over a lifetime of driving, that adds up to significant financial gain.
At Begin Insurance, we understand that tackling the jump from a G2 to a G license can be confusing for new drivers. Whether you are a young driver looking for your first policy or a newcomer to Canada trying to understand the Ontario system, we are here to act as your bridge to better coverage.
Our team of licensed and insured insurance brokers compare the top insurance companies in Ontario and help you find the best coverage depending on your vehicle, lifestyle, requirements and budget. We offer a digital-first experience that helps you to buy auto insurance online with ease. We can help you buy the best coverage for high-risk vehicles, classic cars, motorcycles, commercial vehicles, luxury and vintage cars. We can help you find both the mandatory coverage and optional coverages that will be best for your driving habits.
Request a free quote today and consult with our team.
Posted May 29, 2025