Frequently Asked Questions
Frequently Asked Questions About High-Risk Car Insurance
If your insurance provider has cancelled or non-renewed your policy due to your driving record or history, you are now considered a high-risk driver. Read below to help understand why you have this designation and what it means for your auto insurance coverage going forward.
While the definition of a high-risk driver can vary slightly by insurance provider, in general, a high-risk driver has had accidents, tickets or even a major driving conviction. You can also be labelled a high-risk driver if you’ve missed insurance payments.
Top four Reasons for Becoming a High-Risk Driver
- Speeding tickets
- At-fault accidents
- Missed payments
- Impaired driving convictions
Statistically, drivers with missed payments, infractions and suspensions are more likely to make a claim on their insurance policy. Therefore, they are more costly to insure. 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.
Driving without insurance is illegal. If convicted of driving without insurance, it is considered a serious offense and comes with a fine of $5,000, plus a surcharge of approximately 20%.
You can expect to pay up to 25% more for high-risk insurance in Ontario. However, this amount can vary by provider. Calling a broker with expertise in high-risk insurance can help 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 6 years. So, if you continually practice good driving habits, you can eventually return to a standard insurance policy.
We can also provide you with high-quality coverage once you are no longer considered high risk. Learn more about how NFP’s insurance specialists are here to help you obtain the coverage you need at a reasonable price, with deductible levels you’re comfortable with.
Remember: Only convictions can affect your premium. In Ontario, payment of a ticket is an admission of guilt, and the infraction will appear on your driving record. So, if you choose to fight a traffic ticket in court and win, your insurance rate will remain the same.
However, if you fail to fight the charge, here’s how your conviction can impact your insurance:
- Tickets: Up to 3 years
- Missed payments: Up to 3 years
- At-fault accidents: Up to 6 years
- Suspensions: Up to 6 years
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.
Leave plenty of time for your commute
Avoid driving drowsy
Don't drink and drive
Avoid aggressive driving
Consider defensive driving school