Young, new male drivers in Toronto could face insurance premiums of over $13,000 a year: report

Statistics show that young drivers may take part in riskier behaviors, which is why they're more expensive to insure. Pat Foran reports.

If you’re a young driver or you’re a parent with young drivers in your home in Ontario, you know it can be expensive paying for car insurance.

Statistics show that young drivers may take part in riskier behaviours, which is why they’re more expensive to insure.

A report from Rates.ca found that a 20-year-old male driver in Toronto with no claims and no driver training could have to pay $13,418 annually to insure a recent model Honda Civic.

A 20-year-old female driver with the same experience and car would have to pay $9,607 annually, nearly $3,800 less.

Rates will also depend on where you live in the province and other factors.

“The data demonstrates that young drivers or otherwise new drivers are more likely to have a claim and, not only that, are more likely to have a more expensive claim,” Daniel Ivans, an insurance expert with Rates.ca, told CTV News.

The survey found drivers under 25 are 66 per cent more likely to have speeding tickets, 53 per cent more likely to have any type of ticket, and 17 per cent more likely to have an accident.

The best thing for young drivers to do is gain experience and remain accident and ticket free.

“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,” said Ivans.

Consumer Reports also took a look at insurance costs for young drivers and said the type of car matters, because according to the Insurance Institute for Highway Safety, teens have crash rates nearly four times those of drivers 20 and older.

“You’re going to want to choose a car that isn’t too big, isn’t too small, and (isn’t) too fast,” said Keith Barry with Consumer Reports. “Not only is it going to be cheaper to insure but it’s also going to give that teen driver a better sense of their speed.”

Consumer Reports said young drivers need a car with features designed to keep them out of a crash, but that also have high levels of protection if an accident does happen.

They recommended three used models that are available for around $20,000 or less, giving top marks to the Honda Civic, Toyota Corolla, and Hyundai Tucson.

With insurance rates so high, it can also pay to shop around.

“As we found and as we find over and over loyalty doesn’t pay,” explained Barry. “Shop around because insurance companies want to attract you with lower rates.”

New drivers may want to take driver training and use milage-based telematics insurance programs that monitor your driving habits.

Premiums may also drop as soon as you turn 25, but different companies have different polices so it can pay to shop around.