Car insurance in Ontario is hitting young drivers the hardest and there’s data to back it up. A recent conversation with Daniel Ivans, an expert at Rates.ca, shed light on why drivers in their early 20s could be paying up to $4,000 more per year for car insurance compared to older drivers.

The reason? Insurance premiums are based on risk, and statistically, younger drivers especially males under 25 are more likely to get into accidents or file costlier claims. “Insurance is based on past behavior,” Ivans explained. “New drivers are more likely to have accidents, so insurers charge more to cover those risks.”

Data also shows that by around age 35, driving habits tend to improve and claims go down. That’s why premiums begin to level off.

Gender also plays a role. Young men usually pay more than young women. “If you take 100 young men and 100 young women, you’ll find that men tend to have more or costlier claims,” Ivans said.

For those just starting out, there are ways to save:

• Take an approved driver’s training course : this can count as up to three years of driving experience and reduce premiums.

• Join a usage-based insurance program : these use mobile apps to track your driving habits, and good drivers can save up to 30%.

• Get added to a parent’s insurance policy : this can unlock multi-vehicle or multi-line discounts.

 While car insurance may feel unfair to safe young drivers, the system is based on statistics and past claims not individual driving records alone. The best advice: shop around and look for discounts, because every insurer calculates risk a little differently.