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A restricted or conditional driver’s licence is when you have special conditions attached to your licence. This could include the type of vehicle you can drive or restrictions on what time of day you can drive, among others. Your car insurance rate will depend on the reason for your restricted licence, among other factors.
The most common restricted licences are learner’s permits and provisional licences, but there are other situations where you might also have a restricted licence. Two other common situations include suspensions or medical conditions that affect your ability to drive.
Yes. If it increases the likelihood of a claim occurring, you are legally obligated to let the insurer know about it. The only exception is if they already know about it, in which case you have nothing to lose by telling them anyway.
Premiums depend on a variety of factors. Factors like your location, age or the type of car you drive will dwarf the direct impact of a restricted licence on your premiums. It’s the factors related to your restricted licence, rather than the licence itself, which affect your premiums.
The effect of a restricted licence on your car insurance depends on the reason behind the restriction. In many cases, the effect might not be as substantial as you think. This is because the licence restrictions are designed to help ensure that you can drive safely rather than to penalize you.
For example, the following restrictions help protect new drivers:
Similarly, most learner and provisional licence holders have a zero alcohol limit, and depending on the province, might have conditions regarding the number of passengers and driving at night.
Considering new drivers’ lack of experience on the roads, these restrictions make driving a lot less dangerous than it would be otherwise. The same principle applies to other conditional and restricted licence types, even when the restrictions are for driving with dementia or for traffic violations. Overall, this means that licence restrictions will often have minimal effects on your car insurance premiums compared to other factors like driving history or choice of vehicle.
Note that the information in this guide is general in nature. It may not necessarily be accurate for all car insurance providers or in all locations. Conditions placed on restricted licences vary between provinces and different providers will often employ their own risk models.
As relatively inexperienced drivers, those with learner’s permits or provisional licences can expect higher car insurance premiums. However, a great deal of this is related to age more than licence status. Drivers under 25 can expect significantly higher car insurance premiums simply because they will (almost) never have more than a few years of driving experience.
It’s not unusual for someone to be placed on a restricted licence following a driving suspension. The following are some of the licence restrictions that may apply, depending on your location:
The impact of the offense on your premiums will depend on the nature of the violation, the insurer, and the conditions of the restricted licence. Since restrictions can vary and are often applied on a case by case basis, they will rarely have a direct effect on your insurance premiums. Instead, it’s the peripheral factors that you should be aware of.
For example, someone with previous DUIs might be required to install an alcohol interlock in their vehicle, theoretically preventing them from driving at all when over the limit. An insurer might consider this to mean there is zero risk of future DUIs but will still raise your premiums. The raise is not because of the restricted licence, but because the insurer thinks that people with previous DUIs are more likely to get into accidents.
The same might also apply to other offenses. There’s no denying that both speeding and alcohol have significant impacts on driver safety and increases the insurer’s risk.
Depending on the insurer and the type of policy, a restricted licence may or may not directly lead to higher premiums.
Often, these won’t have a major impact on your premiums.
If your medical condition does affect your car insurance premiums, it is likely for reasons not directly related to your restricted licence. For example, some medical conditions might require you to drive a more expensive modified vehicle, and your premiums might be higher as a result of that.
You can still get car insurance with a restricted licence, but you might pay higher premiums depending on the reason for your restriction. Compare your car insurance options to find the best rate for you.
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