Photo: Wiki.cullin, CC0, via Wikimedia Commons
This guide is for new Canadian drivers and the parents who insure them. It covers who sells car insurance in each province, whether a learner has to be on the policy, and why your driving record changes the price. It also lists the legal ways to keep premiums down. Four provinces run a public insurer. Everywhere else, you buy insurance from private companies.
Key facts
- Public auto insurers: ICBC in British Columbia, SGI in Saskatchewan and MPI in Manitoba. Quebec’s SAAQ covers bodily injury only.
- In BC, learners on your policy do not change your Basic premium. A separate learner premium applies instead.
- Insurers price each driver by experience and record, so list every regular driver truthfully.
- Tickets cost twice for new drivers: once in GDL penalties, then again in higher premiums or driver charges.
Which provinces have public car insurance?
| Province | Who provides compulsory cover | What the public plan covers |
|---|---|---|
| British Columbia | ICBC (Autoplan, sold through brokers) | Basic insurance through ICBC. Optional cover is also available |
| Saskatchewan | SGI (plate insurance, bought with your registration) | Damage to your vehicle from a collision or events such as hail, fire or theft (deductible applies), $200,000 liability, and injury cover (No Fault or Tort, your choice) |
| Manitoba | MPI (Basic Autopac) | Physical damage, third-party liability, and the no-fault Personal Injury Protection Plan |
| Quebec | SAAQ for injuries; private insurers for property damage | The SAAQ covers bodily injury whatever the fault. Owners must buy at least $50,000 of civil liability cover from a private insurer |
| Ontario, Alberta, Atlantic provinces, territories | Private insurers, through agents or brokers | Set by your policy and provincial law. Ontario’s handbook says every registered vehicle must be insured |
In the public provinces you can buy extra cover. In Saskatchewan, extension cover can raise liability above the $200,000 minimum, cover rentals and lower your deductible. Manitoba says its Extension products are optional and can be bought from any insurance provider in the province.
Does a learner driver need to be on the insurance?
Usually, yes. Insurers want to know everyone who regularly drives the car.
- British Columbia: ICBC asks you to list learner drivers. Learners have no driver factor, so they do not affect your Basic premium. One learner premium covers every learner who uses the car, and the amount depends on where you live. A crash caused by a learner does not go on the learner’s driving record. Driving experience only starts to build once they get their N.
- Everywhere else: how learners are rated depends on the insurer, and some may not charge until the road test is passed. Tell your insurer as soon as a household member gets a learner’s licence. Ask in writing whether they are covered and what it costs.
What if a regular driver is not listed?
ICBC requires you to list all regular drivers, including household members. That means anyone who drove the vehicle on 12 or more days in the past 12 months. If an unlisted regular driver causes a crash, the owner can be charged a one-time Unlisted Driver Accident Premium. In 2020, ICBC capped the Basic portion at $5,000, and the Optional portion has its own cap. Check the current figure with an Autoplan broker. ICBC says the charge exists so that customers do not choose to leave higher-risk drivers off their policy.
Fronting: why you should never do it
Fronting means insuring a car in a parent’s name as the main driver when the teen really drives it most. It can look like a cheap way to insure a new driver, but it gives the insurer false information about who drives the car. If that comes out after a claim, the policyholder pays the consequences. The legal way to save is to list the new driver correctly and use the discounts below.
How tickets and the GDL record raise the cost
| Province | System | What it means for a new driver |
|---|---|---|
| British Columbia | Penalty points, Driver Penalty Point premium, Driver Risk Premium | 4 or more points in a 12-month period brings a premium bill. The bill is separate from Autoplan, so you pay it even without a car. Serious convictions (excessive speeding, two device tickets, Criminal Code driving offences) can trigger the Driver Risk Premium |
| Manitoba | Driver Safety Rating (DSR) | New drivers start at base. Each clean year moves you up the scale and lowers your premiums. A phone conviction moves you down 5 levels |
| Saskatchewan | Safe Driver Recognition (SDR) | Your rating changes your vehicle insurance discount. Below zero you pay $50 a point, up to $1,000 per incident |
| Private-insurer provinces | Insurer rating | Insurers look at your driving record and experience. Each ticket and at-fault claim usually raises your premium at renewal |
The insurance cost is on top of your GDL penalties, which are listed in Canadian graduated licensing compared.
Legal ways for new drivers to lower premiums
- Take approved driver training. Alberta says completing licensed Class 5 driver training may qualify you for lower insurance rates. Ontario leaves any discount for its beginner course to the insurer. Get quotes with and without the course before you pay for it.
- Keep a clean record. In BC, Manitoba and Saskatchewan, a clean record builds directly into discounts.
- Drive less if you can. ICBC offers a discount if the vehicle is driven under 15,000 km a year.
- Choose the vehicle carefully. ICBC says a vehicle’s make, model, repair costs and safety or anti-theft features affect optional premiums.
- Raise the deductible. A higher deductible lowers the premium. Only do it if you could afford to pay that amount after a crash.
- Ask about every discount in writing. In the private provinces, insurers set their own discounts. Telematics (usage-based) programs are offered by some insurers, so ask before you buy.
Common questions
Do I need my own policy as a learner?
Usually not. Learners normally drive a car someone else has insured and are listed on that policy. In BC, the owner adds a learner premium.
Will my parents’ premium go up when I pass my road test?
Often, yes, because you become a rated driver with little experience. In BC, experience starts to count from the N licence.
Can I drive a friend’s car as a learner?
Only if your learner conditions are met and the car is properly insured for you to drive. Ask the owner to check with their insurer before you drive it.
Is car insurance cheaper in public-insurance provinces?
Rates are set differently, so no simple comparison is possible. Get a quote for your own vehicle and driver.
Does a learner’s crash go on their record in BC?
No. ICBC says crashes caused by learners do not go on the learner’s driving record. The policyholder’s premiums can still be affected.
I am a new driver. What is the single biggest saving?
A clean record. One conviction can wipe out years of discounts in Manitoba’s and Saskatchewan’s systems.
Related: learning to drive in Canada, cost of getting a licence in Canada, BC penalty points and Driver Risk Premium, Manitoba Driver Safety Rating, SGI Safe Driver Recognition.
Sources
- ICBC, “Listing a Learner on your policy” (icbc.com)
- ICBC, “What determines insurance costs?” (icbc.com)
- ICBC, “Drivers, experience and crash history” (icbc.com)
- ICBC, “Customers urged to list drivers on their insurance policy”, 9 July 2020 (icbc.com)
- SGI, “Saskatchewan Driver’s Handbook: vehicle registration” (sgi.sk.ca)
- SGI, “Saskatchewan Driver’s Handbook 2026-27” (sgi.sk.ca)
- Manitoba Public Insurance, “Guide to Autopac” (mpi.mb.ca)
- Manitoba Public Insurance, “Driver’s Handbook” (apps.mpi.mb.ca)
- Société de l’assurance automobile du Québec, “Québec’s Public Automobile Insurance Plan in Brief” (saaq.gouv.qc.ca)
- Société de l’assurance automobile du Québec, “Liability Insurance for property damage” (saaq.gouv.qc.ca)
- Government of Ontario, “Official MTO Driver’s Handbook: vehicle insurance and registration” (ontario.ca)
- Government of Alberta, “Class 5 driver training” (alberta.ca)