Over the past few years, we have noticed that many teens are choosing to delay obtaining their driver’s licence, well past the age of 16, when it once felt like a rite of passage.
Why Teens Are Waiting
- Cost pressures: Teens and families are facing rising costs—not just for cars, but also licence fees, lessons, gas, maintenance, and crucially, insurance. Data from a U.S. study shows 70% of teens delay licensure by at least a year, often due to affordability concerns.
- Life distractions: Between academics, part-time jobs, social media, and extracurriculars, driving can take a back seat. One teen admitted they didn’t need a car for socializing.
- Help from others and rideshares: Parents, older siblings, friends and ride shares can help get teens where they need to go.
- Anxiety and readiness: Driving anxiety and feelings of unpreparedness are real. poor teaching experiences or fear of making errors keep some teens off the road.
Better transit options:
- Walkable communities, cycling, and public transit offer viable alternatives—especially in urban and suburban areas.
- As a result, nearly 40% of teens delay getting licensed by 1–2 years, and around 30% delay by over two years (1)
Why It Matters (and Why Parents Should Care)
- While postponing licensure can save money short-term, it may carry hidden costs:
- Insurance surcharges: When teens eventually go to school or move out, they often need their own insurance policy. Without driving experience, they face significantly higher premiums than their peers who gained experience sooner.
- Missed safety benefits: Ontario’s multi-stage licensing system (G1, G2, G) is designed to help young drivers gain supervised experience and reduce risks at night and with passengers.
Teens delaying entry may miss these crucial risk-reducing steps.
How to Help Teens & Save on Insurance
- Shop around: Get quotes from multiple insurers early. Even with limited experience, rates can vary substantially.
- Enroll in driver training: Completing accredited programs can accelerate licensing (reducing G1 wait time from 12 to 8 months) and may earn insurance discounts.
- Stay on parents’ policies temporarily: As occasional drivers on a parent’s policy, teens may pay less, but only if parents are open to that option.
- Compare costs before switching to their own policy.
- Accumulate good history: Keeping a clean driving record for even a year can significantly cut future premiums.
- Embrace telematics: Some insurers offer apps or devices that track driving behaviour (speed, braking, time of day).
- Safe driving can yield real discounts.
Final Thought
Driving might not be an immediate priority, and that’s okay. Still, delaying to the point of skipping Ontario’s graduated system—or taking a lengthy path to licensure—can end up costing more in the long run. Helping teens earn experience early, under the right conditions, offers both safety and financial benefit.
At Gibb Insurance, we’re here to guide families through this evolving landscape, finding the best ways to protect new drivers and save on premiums. Interested? Get in touch with us today: 519-736-8228