Being labelled a High Risk driver can be a major inconvenience on your schedule & your wallet. High Risk Driving can leave you searching for a new policy and you will have higher insurance rates as a result.
Understanding what it means to be a “High Risk Driver” can help you avoid costly mistakes so that you can get back to standard insurance and avoid returning to the High Risk category.
While the definition of High Risk Driving can vary slightly by insurance provider, in general, a High Risk driver has had accidents, tickets or even a major driving conviction. You can even be labelled a High Risk driver if you’ve missed scheduled insurance payments.
Top 4 Reasons for Becoming a High Risk Driver:
Once you are High Risk, your standard insurance provider may cancel or non-renew your policy. They do this because statistically, missed payments, infractions and suspensions indicate that you’re more likely to make a claim on your policy. If your insurer cancels or non-renews your policy, you will need to obtain a new policy with a non-standard insurance provider before you can get back behind the wheel.
Remember, driving without insurance is illegal. If convicted of driving without insurance, it is considered a serious offence and comes with a hefty fine of $5,000.00, plus a surcharge of approximately 20%.
The average cost of high risk insurance varies by insurer. You can expect to pay up to 25% more for High Risk Insurance in Ontario. Calling a professional high risk insurance broker can ensure you get the best price and coverage as a high risk driver.
While it can be discouraging, being a High Risk driver doesn’t mean you will always be High Risk. On average, infractions affect your insurance premiums for 3 years from the date of your conviction. More serious convictions may affect your insurance for up to 5 years. So, if you continually practice good driving habits and keep a clean driving record, you can eventually return to a standard insurance policy.
It’s important to remember, only convictions can affect your premium. If you’re charged with a traffic violation, it’s important to know your options. In Ontario, payment of a ticket is an admission of guilt and the infraction will appear on your driving record. However, if you choose to fight a traffic ticket in court and win, your insurance rate will remain the same.
Many drivers wrongly assume that demerit points affect their insurance. In truth, individual demerit points do not affect your insurance. However, the infractions that caused those demerit points or a license suspension due to an accumulation of too many demerit points can impact your insurance. As a result, you could end up in the High Risk Car Insurance category.
If you have questions about High Risk Insurance, contact an Easyway Insurance broker today. We can help get you back on your path to lower rates.