A new analysis from Rates.ca has revealed just how costly car insurance can be for young drivers — especially young men — with premiums topping $13,000 a year for some new male motorists in Ontario.
According to the report, a 20-year-old male driver with no claims history and no formal driver training could pay $13,418 annually to insure a recent-model Honda Civic. For a female driver of the same age with identical circumstances, the annual cost drops to $9,607 — still steep, but nearly $3,800 less.
Insurance experts say the gap boils down to risk. Statistics show young drivers — especially those under 25 — are far more likely to take risks behind the wheel. Drivers in that age group are:
- 66% more likely to receive speeding tickets
- 53% more likely to receive any type of ticket
- 17% more likely to be involved in an accident
“All the data demonstrates that younger or inexperienced drivers are not only more likely to have a claim, but more likely to have a costly claim,” insurance specialist Daniel Ivans told CTV News.
Location, driving record, vehicle type and driving experience all play major roles in shaping premiums. For young drivers, the most effective strategy is simple: stay ticket-free, avoid accidents and accumulate experience.
“For every year you can show you’ve been driving safely, insurers see you as a lower risk,” Ivans added.
Experts also recommend that families choose the right vehicle. Consumer Reports notes that teens have crash rates nearly four times higher than drivers over 20, making safety features — and vehicle choice — critical. The ideal car should be:
- Not too big
- Not too small
- Not too fast
Safer choices are also often cheaper to insure. For young drivers with a budget near $20,000, Consumer Reports recommends used models such as the Honda Civic, Toyota Corolla and Hyundai Tucson, all of which perform well in safety evaluations.
With rates this high, shopping around is essential. Consumer Reports stresses that “loyalty doesn’t pay” in the current market, with insurers often offering lower rates to attract new customers.
Other ways young drivers can reduce costs include:
- Completing recognized driver training programs
- Signing up for telematics-based insurance that tracks driving habits
- Comparing offers between multiple insurers
- Benefiting from rate reductions that sometimes kick in at age 25 (though policies vary by company)
For now, though, the message is clear: young drivers — especially young men — are facing some of the highest insurance premiums in the country, making careful shopping and safe driving more important than ever.