If you’ve been classified as a high-risk driver, you already know that high-risk car insurance can be expensive. Being labelled as “high risk” by an insurance company after several driving incidents can have a major impact on your premiums and limit your options for coverage. The good news is that there are still ways to reduce the cost of high-risk car insurance in Ontario. While discounts may not bring your premiums down to standard rates immediately, they can help you save money while you work to rebuild your driving record. Let’s explore the discounts and strategies that may help lower the cost of high-risk auto insurance.
What Qualifies Someone As A High-Risk Driver?
Insurance companies classify drivers as high risk when their driving history suggests they are more likely to file a claim. While each insurer uses its own rating system, drivers may be considered high risk if they have several convictions or a combination of incidents on their record.
Examples of convictions that may lead to high-risk classification include:
- Driving under the influence of alcohol or drugs
- Dangerous or reckless driving
- Multiple speeding tickets
- Stunt driving offences
- More than one recent at-fault collision
- Multiple insurance claims within a short period
Other factors that may cause insurers to classify someone as a high-risk driver include:
- A suspended licence
- Poor payment history or cancelled policies
- A lapse in insurance coverage
- Being a new or young driver with a limited driving history
- Never having been insured before
- The type of vehicle you drive
When drivers fall into this category, their access to lower-cost insurance becomes more limited. Instead, they must typically obtain coverage through insurers that specialize in high-risk auto insurance.
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High-Risk Car Insurance Discounts: What Do Drivers Pay?
High-risk insurance premiums are significantly higher than standard auto insurance rates. Depending on the insurer and the severity of your driving record, high-risk drivers in Ontario may pay 25% to 250% more than drivers with a clean record. While these premiums can feel discouraging, maintaining a clean driving record over time can eventually help drivers return to standard insurance rates.
Unfortunately, cheap insurance for high-risk drivers can be hard to find. Although cheap insurance for high-risk drivers is rare, there are still ways to reduce premiums through available high-risk car insurance discounts and smart insurance decisions.
1. Shop Around For Insurance
One of the most effective ways to find better rates is to compare quotes from multiple insurers. Insurance companies calculate risk differently, which means the same driver may receive very different quotes depending on the provider. Working with a brokerage like isure allows you to compare multiple high-risk insurers at once, helping you identify the most competitive option available.
2. Bundle Your Insurance Policies
Bundling your insurance policies with the same provider can lead to noticeable savings and high-risk car insurance discounts.
Many insurers offer discounts when you combine policies, such as:
- Auto insurance and home insurance
- Auto insurance and tenant insurance
- Multiple vehicles on the same policy
Depending on the provider and coverage, bundling policies can often result in savings of 5% to 15%. It is always important to talk to your insurance provider to ask about bundling your options when it comes to bundling.
3. Consider Usage-Based Insurance (UBI)
Some high-risk car insurance discounts can be offered by insurance companies through usage-based insurance programs, also known as telematics programs. These programs track driving behaviour through a mobile app or a small device installed in your vehicle.
They monitor factors such as:
- Distance driven
- Time of day you drive
- Acceleration and braking habits
- Speed and cornering
- Overall driving behaviour
Drivers who demonstrate safe driving habits may qualify for discounts over time. These programs can be especially helpful for high-risk drivers who want to prove they are improving their driving habits.
4. Increase Your Deductible
Raising your deductible is one way to lower your insurance premium immediately. A deductible is the amount you must pay out of pocket before your insurance coverage applies. For example, if your deductible is $1,000 and your claim is $5,000, you would pay the first $1,000, and the insurer would cover the remaining $4,000. However, it’s important to choose a deductible amount that you can comfortably afford in case you need to make a claim.
5. Reduce your driving
Driving less can lower your risk exposure and may help reduce your insurance premiums.
If possible, consider alternatives such as:
- Public transit
- Carpooling
- Walking or cycling
- Working remotely when available
Lower annual mileage can sometimes qualify drivers for lower insurance rates.
6. Pay Your Annual Premium On Time
Some insurers offer a small discount if you choose to pay your annual premium in full instead of making monthly payments. By paying upfront, insurers receive the full premium earlier, which can reduce administrative costs and allow them to offer a small discount in return.
When you consistently make payments on time, you also avoid late fees, maintain a good payment history and avoid any policy cancellation changes. Furthermore, when you pay your entire premium upfront, rather than monthly, you can save 7%-10% on costs by avoiding installment fees.
7. Work With An Insurance Broker
High-risk insurance brokers specialize in helping drivers with complicated insurance histories find coverage.
Because brokers work with multiple insurers, they can:
- Compare policies across several providers
- Help you find insurers that accept high-risk drivers
- Offer guidance on improving your insurance profile over time
A broker can also notify you when your driving record improves, and you may qualify for more affordable insurance. If you’re looking for a new broker, don’t hesitate to reach out to us at isure.
8. Choose An Insurance-Friendly Vehicle
The type of vehicle you drive can affect your insurance premium. Vehicles with higher repair costs or higher theft rates may cost more to insure. Choosing a vehicle known for lower insurance costs can help reduce premiums. Cars with strong safety ratings, moderate horsepower and lower repair costs are often cheaper to insure.
You may also make additions to your vehicle, such as installing safety features and anti-theft devices, to improve your insurance premiums. This can include GPS trackers, alarm systems and engine immobilizers. Remember, the system and devices must be active and functioning to potentially receive discounts.
High-Risk Car Insurance Discounts: Tracking Your Driving
Traffic tickets and driving violations can have a major impact on your insurance premiums. If you want to review your driving history, you can order a copy of your driver’s record (driver abstract) through Ontario’s licensing system. This document provides a record of convictions, suspensions and other driving-related information. By ordering a driving record, you can ensure you are on the right path to escaping high-risk insurance costs.
Is There Cheap Insurance For High-Risk Drivers?
In most cases, there is no such thing as truly cheap insurance for high-risk drivers. However, some insurers offer more competitive rates than others. By comparing multiple providers and applying available discounts, drivers can often find more affordable options while they work to rebuild their driving records.
At isure, we believe that drivers deserve a second chance. That’s why we work with a wide network of insurers across Canada to help drivers find coverage—even when other companies say no. Contact isure today to request a quote and explore your options for high-risk car insurance.
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