If you own a vehicle, chances are it’s one of your prized possessions. In addition to this, owning a car entails a significant responsibility: maintaining a clean insurance record. This is achieved by avoiding risks and minimizing the likelihood of accidents. These mishaps are not only costly but can also cause severe damage to both you and your vehicle.
In Ontario, being involved in a car accident can result in various types of consequences. These consequences can be both immediate and long-term. Not only do you risk injury and damage to your vehicle, but you also risk making a mark on your driving record that will stick around. So, how long does an accident stay on your record in Ontario? Let’s get into it.
What is the Difference Between a Driving Record and an Insurance Record?
Contrary to popular belief, an insurance record and a driving record are distinct entities. A driving record or abstract is an official summary of a driver’s history on the road, including traffic violations, accidents, licence status, and demerit points. Your insurance record is a history of all of the accidents and claims you have made over a specific time frame. Insurance companies primarily use this record to help them determine your risk level and calculate your premiums.
Generally, a car accident will stay on your insurance record in Ontario for roughly six years. However, depending on the severity of the accident, some providers will keep an accident on your insurance record as long as 25 years. The aftermath and effects of the accident itself will likely cause your insurance rates to increase for at least three years after the accident. This is due to the Ontario Highway Traffic Act (HTA).
What Factors Influence Accidents and Your Insurance Record?
Several key factors will play a role in determining how long an accident will stay on your insurance record. The two main ones are whether or not you are at fault, or if any changes occur to your driving record. Let’s take a further look.
1. Determining Fault
Fault determination is used to assign responsibility to whichever driver, or drivers, are responsible for the accident. If you are at fault in an accident, your insurance record will likely be impacted greater.
A lot of different methods are used to determine fault by insurance companies. This can include looking at police reports, talking to witnesses and reviewing any available evidence or the crash site. Once this is all taken into consideration, a decision will be made regarding who is at fault. This will typically result in an increase of insurance rates for whoever it applies to.
2. Changes In Your Record
Your driving habits overall will play a big part in how long an accident tends to stick on your record. If, after an accident, you keep a clean record with no accidents or claims, you will be seen as less of a risk. However, if you continue to show high-risk driving habits, such as speeding tickets, not wearing a seatbelt, or receiving a DUI after your previous accident, you will likely be labelled a high risk driver.
How Long Do Demerit Points Stay on Your Insurance Record?
Every time you receive a driving offence in Ontario, you’ll receive a certain number of demerit points. These points will show on your licence and driving record, and will stay there for up to two years from the date of the event’s occurrence. It is important to minimize the number of demerit points you receive. This is because after a certain amount, you may lose your licence or face other, more extreme, penalties.
How Much Do Car Accidents Affect Premiums?
If you’re at fault for an accident in Ontario, you can expect your premiums to increase by roughly 20-40%. However, an increase of up to 200% is sometimes a necessary step for insurance providers. This will largely depend on the severity of the accident, as well as any other factors that may be in play.
If you are at fault for more than one accident, this will result in an even bigger increase, often tripling the original premium. This is because insurance providers will see multiple at-fault accidents and label you as a high-risk driver. Any subsequent tickets or accidents on your insurance record can result in an even bigger premium boost. This is because insurance companies will deem you as likely to get into another accident.
Can You Remove an Accident from Your Insurance Record in Ontario?
If you’re in a car accident in Ontario, you may be wondering if there’s a way to remove it from your insurance record early. Unfortunately, accidents generally remain on your insurance record for up to six years, depending on the severity and your insurance provider’s policies. However, there are steps you can take to lessen the impact on your car insurance premiums. Some Ontario insurance companies offer accident forgiveness programs, which may prevent your first at-fault accident from increasing your rates.
To qualify, you typically need a clean driving history and several years without prior claims. Other ways to help reduce your premium include maintaining a clean driving record after the accident, bundling your home and auto insurance, and shopping around for competitive car insurance quotes. Speaking with an experienced isure broker can help you explore all available options to manage and potentially reduce your insurance costs after an accident.
Insurance Records In Ontario: Conclusion
At the end of the day, keeping a clean insurance record is critical to keeping low premiums. On top of this, it makes sure you and those that matter most are kept safe and sound on the road. If you have any questions regarding auto insurance, don’t hesitate to reach out to us at isure! Contact us or request a quote today!
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