PEI Stage 2 and Stage 3 Rules: Passengers, Curfew and G Decal
What are the Stage 2 and Stage 3 rules in PEI?
In Stage 2, you can carry only one passenger who is not immediate family, and if you are under 21 you cannot drive from 1 a.m. to 5 a.m. without a qualified driver beside you or a written exemption. In Stage 3, you can carry as many passengers as there are seat belts. Both stages last one year and need zero alcohol, zero drugs and a G decal.
Where these rules come from
This guide uses the Prince Edward Island Highway Traffic Act (current to May 29, 2026), the Graduated Driver Licensing Regulations, the Highway Safety Division Graduated Driver Licensing booklet (updated August 2023) and its Co-pilot brochure for parents (updated January 2023). The rules are as of 2026. Where a booklet and the law differ, this guide follows the law. Confirm the rules with Access PEI (princeedwardisland.ca) before you drive.
How many passengers can a Stage 2 driver carry in PEI?
One passenger who is not immediate family, and every passenger needs a seat belt position. All other passengers must be immediate family. Under the Highway Traffic Act, immediate family means your spouse, your parents and their spouses, your children and your spouse's children, your grandchildren, your brothers and sisters, your grandparents, your spouse's parents, and any other relative who lives permanently with you or with whom you permanently live. A friend is not immediate family, so you can drive only one friend at a time.
What changes for passengers in Stage 3?
Stage 3 is a Class 5 licence with reduced restrictions, and the Stage 2 limit of one non-family passenger is lifted. You can carry as many passengers as the vehicle has seat belt positions. Each passenger who sits in a seat with a seat belt must wear it, and you, as the driver, must make sure of this. Zero alcohol, zero drugs, the G decal and the ban on hand-held devices stay in place.
Can I drive between 1 a.m. and 5 a.m. in Stage 2 or Stage 3?
How to get a written exemption for night driving
- Only a Stage 2 driver under 21 can ask for an exemption.
- Apply on the form that the Registrar approves. The exemption forms are at all Access PEI locations.
- The law gives three kinds of reason: travel between your home and your place of work, employment-related duties, or any other reason that the Registrar considers appropriate.
- If you are under 18, a parent or legal guardian must complete and sign a written consent for you.
- The Registrar can add conditions, such as no passengers during the exemption hours, or that you carry the written exemption while you drive in those hours.
- The Registrar can cancel an exemption for any reason.
How long are Stage 2, Stage 3 and the whole PEI program?
You reach Stage 2 when you pass the practical driving examination after 365 days in Stage 1, or after 275 days if you completed a driver education program in the province. Stage 2 is a Class 5 licence with restrictions, and it lasts one year. After that year, you are automatically deemed to hold a Stage 3 licence. Stage 3 is the last year of the program and lasts 365 days. The whole program takes at least three years, or two years plus 275 days with a certified driver education program. Suspension time is added to the stage, so the program takes longer.
PEI Stage 2 and Stage 3 side by side
| Rule | Stage 2 | Stage 3 |
|---|---|---|
| Length | One year, plus any suspension time | One year (365 days), the last year of the program |
| Passengers | One passenger who is not immediate family, and a seat belt position for each passenger | No more passengers than seat belt positions, and each passenger wears the belt |
| 1 a.m. to 5 a.m. | Under 21: only with a qualified driver beside you or a written exemption | Night limit lifted |
| Blood alcohol and drugs | Zero | Zero |
| Hand-held phone or headphones | Not allowed while driving | Not allowed while driving |
| G decal | Display on any vehicle that you drive | Keep the same G decal on the windshield |
Zero alcohol and zero drugs in Stage 2 and Stage 3
Your blood alcohol concentration must be zero at all times while you drive, and your blood drug concentration must be zero. The Highway Traffic Act also makes it an offence for any driver under 22 to drive with alcohol in the blood, so the zero rule stays until 22 even if you finish the program sooner. Test yourself with the free question on the blood alcohol limit in the three licence stages.
Phones and headphones in Stage 2 and Stage 3
As a Stage 2 or Stage 3 driver (a newly licensed driver in the law), you must not use a hand-held cellular phone, headphones, an mp3 player or any other hand-held electronic device while driving. Hands-free mode is allowed. The fine for holding or using a hand-held device while driving is $500 to $1,200 (CAD) for any driver. Hands-free is not risk-free: see the question on why a hands-free call is still risky.
Suspensions for Stage 2 and Stage 3 drivers
- A conviction for a seat belt, passenger or hand-held device offence: a one-month licence suspension for a first offence, and three months for a second or later offence.
- Stage 2: six or more demerit points in the first year bring a one-month suspension and probation.
- Stage 3: nine or more demerit points in the second year bring a one-month suspension and probation.
- More demerit points during probation bring a further suspension, for a length that the Registrar sets.
- The guide to new driver penalties and demerit points has more on demerit points and other penalties.
The G decal
The G decal has a yellow background and a black capital G. You get it free when your photo is taken for your Class 5 licence. Put it on the inside of the windshield, just above the motor vehicle inspection sticker, and display it on or in any vehicle that you drive. In Stage 3 you keep the same decal on the windshield.
Key takeaways
- Stage 2: one passenger who is not immediate family, and a seat belt position for every passenger.
- Stage 2 under 21: no driving from 1:00 a.m. to 5:00 a.m. without a qualified driver beside you or a written exemption.
- Stage 3: no more passengers than seat belts, and each one wears a belt.
- Each stage lasts one year, Stage 3 starts automatically, and the whole program takes at least three years.
- In both stages: zero alcohol, zero drugs, no hand-held devices, and the G decal on the vehicle.
- Next step: practise on the free Prince Edward Island Class 7 practice test.
PEI Stage 2 and Stage 3: common questions
I am 21 or older. Which Stage 2 rules still apply to me?
All of them except the 1 a.m. to 5 a.m. rule. You can drive at night without a qualified driver, but you still carry only one passenger who is not immediate family, keep zero alcohol and zero drugs, use no hand-held devices and display the G decal.
Can an older friend be my qualified driver between 1 a.m. and 5 a.m.?
Yes, if your friend meets the conditions of the law. These include: your friend is fully licensed, has held a valid licence in PEI or another jurisdiction for at least four years, has blood alcohol below 50 mg in 100 mL of blood, and sits beside you while you drive.
What happens to my Stage 2 time if my licence is suspended?
The length of each suspension is added to the time that you must hold the Stage 2 licence, so Stage 3 starts later. For example, after a one-month suspension you need one year and one month in Stage 2 before you move to Stage 3.
What if I lose my G decal or drive a rental car?
You can get a replacement decal at any Access PEI location at no charge. The Registrar can also issue a temporary decal when your decal is lost or destroyed, or when you drive a loan or rental vehicle. Display the temporary decal on or in that vehicle.
Do I get a new licence card when Stage 3 ends?
No. Your Stage 2 licence is already a Class 5 licence, and you do not need a replacement Class 5 licence at the end of Stage 3. When your time in Stage 3 ends, you can take the G decal off the vehicles that you drive.
Practise for your Prince Edward Island Class 7 test
3 free practice tests with 60 questions, answers and explanations.
Start free Practice Test 1Share or ask AI about this article
Continue the conversation or send this guide to someone who needs it.
Related guides
How to Get a Class 7 Learner's Licence in Alberta (2026 Steps)
You can apply for an Alberta Class 7 learner's licence at 14. See the four steps, the knowledge test fee, the temporary licence and what you may drive.
Florida Learner's License at 15: Requirements, Hours and Rules
How to get a Florida learner's license at 15: the tests, the course, parental consent, who must ride with you, when you can drive and what comes next.
Can International Students Drive in Michigan? License Rules
Yes, if you are temporarily in the U.S., you may drive on your home license, with a translation or IDP if it is not in English. See the F-1 and J-1 documents.