Insurance vs Traffic Convictions
Traffic Tickets Affect Insurance Rates
Some drivers will complete their driving career without ever being involved in a motor vehicle collision, or ever receiving a traffic ticket. Other drivers will have at least one collision during their driving career, which may include a traffic ticket(s). This one collision, and/or ticket(s), could be life altering. Owning an automobile is the second most costly expense we experience. All new drivers beginning in the Graduated Driver's Licence system are considered by the insurance industry as "High Risk". Upon graduating to a G licence, this risk gradually diminishes. If you have had the misfortune of being involved in a collision that is deemed your fault, or if you have received a series of traffic convictions, then your risk factor as a client to the insurance company, will increase. How does your insurance company compensate for this, by labeling you as a "High Risk" driver and increasing your insurance premium. The Ministry of Transportation allows the insurance companies access to your driving record enabling them to review the amount of convictions on your driving record. This also determines your risk factor, along with your age, sex and driving experience. Should your risk factor become too high, you are then placed into facility insurance, where the premiums drastically increase.
Insurance companies may penalize you for any violation of the Highway Traffic Act, the Criminal Code of Canada, the Compulsory Automobile Insurance Act, or any other Federal, Provincial, or Municipal driving law. Involvement in a motor vehicle collision will usually increase the likelihood of penalty which may include jail. Convictions remain on your insurance record for a minimum of 3 years from the date of the conviction, and accidents for a minimum of 5 years from the date of the collision. Offences fall into one of the following categories:
Minor Charges
All simple charges such as failing to wear a seat belt, lower level speeding charges, failing to produce either drivers licence, proof of insurance, vehicle ownership or vehicle equipment offences. Convictions for these type of charges may very well lead to a premium increase depending on your age, driving experience, and the number of allowable convictions by your insurer. Some insurance companies have a threshold of 2 allowable minor convictions, anything more, and they will not renew your policy. Some insurance companies are 3 or 4 minor convictions.
Major Charges
Charges of a more serious nature such as failing to report any accident, higher level speeding charges, and driving without insurance. Convictions of this nature will almost certainly cause a considerable insurance premium increase.
Serious Charges
The very serious charges such as careless driving, impaired driving, very high speeding charges, racing or stunt driving, and driving while disqualified or under suspension. Convictions of this nature will lead to cancellation from the regular insurance market, and transfer you to "facility" or "high risk" group of insurance companies. Premium increases in these cases range from 300% to 500% depending on your age, and driving experience. These higher insurance premiums can last from 3 to 6 years.
Duration of Conviction Record
All Highway Traffic Act convictions remain on your record for life. Demerit points remain on your driver's licence for 2 years from the date of the offence, then subtract. Everyone starts with 0 demerit points. The Ministry of Transportation of Ontario gives insurance companies access to your driving record that will reveal the number of convictions and demerit points that you have accumulated. It will also reveal whether you are presently licenced to drive, and if you have been suspended from driving by the court or ministry for any reason.
A Good Piece of Advice
It is vital that you investigate the nature of every offence before deciding on whether to dispute the charge. The level of seriousness may not always be clear from the type of ticket or the level of the fine. Always take advantage of our free consultation for an honest assessment of your situation, and professional advice on how to resolve the matter. You may also wish to see our stories of non-success for client predicaments and outcomes we have been told about.
Please note, insurance companies differ on their policies with each individual, and it is always best to contact your insurance agent/broker to discuss insurance ramifications in detail with them before you pay any ticket. Paying the ticket can be a short term relief, and a long term financial pain.
Can you afford to pay higher insurance rates?
How About A Free Quote?
Some drivers will complete their driving career without ever being involved in a motor vehicle collision, or ever receiving a traffic ticket. Other drivers will have at least one collision during their driving career, which may include a traffic ticket(s). This one collision, and/or ticket(s), could be life altering. Owning an automobile is the second most costly expense we experience. All new drivers beginning in the Graduated Driver's Licence system are considered by the insurance industry as "High Risk". Upon graduating to a G licence, this risk gradually diminishes. If you have had the misfortune of being involved in a collision that is deemed your fault, or if you have received a series of traffic convictions, then your risk factor as a client to the insurance company, will increase. How does your insurance company compensate for this, by labeling you as a "High Risk" driver and increasing your insurance premium. The Ministry of Transportation allows the insurance companies access to your driving record enabling them to review the amount of convictions on your driving record. This also determines your risk factor, along with your age, sex and driving experience. Should your risk factor become too high, you are then placed into facility insurance, where the premiums drastically increase.