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How much does driver's education cost? And how much will it save on insurance?

By HUB SmartCoverage Team on March 27th, 2018

Statistics say that teen drivers get into more accidents than those aged over 25. Younger drivers have less road experience and get into more accidents than you would assume, as their age group makes up a small portion of all road-users.

Since insurance coverage is all about statistics, drivers of higher risk will pay more for their policy. People under the age of 25 often face painfully high insurance rates, and the rate will only increase if you live in a dense, urban environment. On top of that, your gender will play a role in the cost of your insurance premium, too.

Driver's ed.

Young drivers under the age of 25 can look to pay insurance premiums upwards of thousands of dollars per year, but how can a young driver try to limit some of that financial burden while legally gaining road and insurance experience?

Driver’s education programs are an easy way to gain road experience. If you graduate one of these provincially-approved programs, insurance providers will look at you as someone who wants to be a good driver and one who has taken the right steps to become just that.

Below, we’re going to look at how much driver’s education courses cost and how much you could save on insurance as a young driver. The conclusion will also give you some more ways to save even more on your insurance premiums.

Standardized driving schools

We used perhaps the most recognizable driver’s education school in the province: Young Drivers of Canada. The program offers in-class and in-car training so that you can take what you learned at the desk behind the wheel.

There are other driver’s education programs all over the country, so head to your Ministry of Transportation website if you’re interested in finding an approved driving school near you. The more recognizable the program, the more likely your insurance provider will offer a discount.

Tell your teen to take advantage of after-school driver’s ed. classes; at some large schools, they will have seasonal sessions at a discount.

Young Drivers offers a few different packages that give students a great overview of driver’s instruction-from defensive driving techniques to road test prep and interactive driving modules.

What it costs

At Young Drivers, as an example, a full course includes 20 to 25 hours of in-class instruction and testing, plus 10 to 15.25 hours private in-car training, while some options include the road test while others don’t. It depends on the package you choose.

The prices for these full courses are tiered. The most basic course without a road test costs $925, the middle of the line costs $1225, while the most expensive and extensive package that includes night and gravel driving comes in at $1395.

As expensive as it may seem, parents should realize that they’re sending their teens to a professional driving school with a proven track record of success. The experience and wisdom that these teachers pass on to the youth will be stuck in their heads for their life on the road.

In order to take advantage of the driver’s education discount, the student must graduate!

How much can you save?

Once you graduate from driver’s education, first-time drivers are often confused about the insurance process. You can get quotes for insurance, as a 22-year-old for example, of up to $5,000 per year! It’s quite daunting and downright unaffordable.

An insurer has the option of reducing the cost of a first-time driver’s insurance premium if they have graduated from an accredited driving school. The savings come down to the insurer since every company is different. You will need to obtain a copy of your Driver’s Licence History report from the Government Services office particular to your province before you start the process.

Your License History acts as proof to the insurer that you graduated the driver’s ed. program. Since driver’s education courses have proven to reduce the number of accidents for young drivers, statistically, you will be in a more favourable position than a young driver who decided against the program.

The savings for a driver’s education graduate can be as high as 10%, but you need to talk to your provider and shop around to see if you can get a better deal.

Let’s say you were quoted at the low end of the scale: $1,000 for your premium when you first got behind the wheel at 16, after successfully completing driver’s education which brought you a discount of 10% per year.

Your rate stays the same until your 25th birthday, and you’ve just saved $900 over nine years.


Again, your rate will depend on where you live, who you are and what you have chosen to drive. To save even more money, ask your parents to add you to their policy instead of purchasing one on your own; this is the easiest way to score a cheaper insurance rate.

Being an occasional driver on your parent’s insurance policy will also build your insurance history, and lead you to discounts down the road. You need to build driving experience and choose the right vehicle. Sports cars, trucks and big SUVs will cost more to insure while used cars will cost less.

What else can a teen do? Combine the driver’s ed. discount with a ‘good grades discount.’ Some providers offer this to students who can maintain a 3.0 GPA. Next, if you’re using a separate car on your parent’s policy, there should be a multiple-car discount available.

Keep your driving record as clean as possible until your 25th birthday and beyond, and you should start seeing your insurance rates level off.

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