Your driving record is one of the most crucial factors that insurance providers look at when deciding whether or not to renew your auto insurance policy. Understanding your driving record and how it affects your vehicle’s coverage is crucial for every driver on the road. Here is a breakdown on how your driving record impacts renewals and how you can protect it going forward.
Why Your Driving Record Matters
When your car insurance comes up for renewal, your insurance provider will review your driving record to determine whether to continue your coverage and at what rate. Everything on your driving record tells your insurer how much of a risk you are as a driver, and how to handle your coverage (and its cost) accordingly. A clean record typically will earn you lower rates and a smooth renewal process. However, a record with repeated offences or at-fault claims can result in higher premiums or even non-renewals.
How is Your Driving Record Reviewed?
Insurance providers usually review your driving history at each renewal, which is typically annual. If your record shows multiple convictions, like distracted/careless driving, DWIs, or speeding, your provider may consider you a higher risk.
Each renewal period, your insurer accesses your driving records from the provincial transportation authority (MTO in Ontario). This report will have a list of your traffic violations, accident history, and accumulated demerit points. As mentioned before, insurers will use this information, along with claims data and other risk factors, to set your renewal rate.
- 1-2 minor convictions, such as small speeding tickets, may lead to a slight increase.
- 3+ convictions or serious offences, such as careless/impaired driving, often result in a more substantial increase.
- Multiple at-fault accidents can result in non-renewal or being moved to high-risk insurance coverage.
Moreover, your driving record directly affects your insurance, and a higher incident rate leads to a higher-risk classification of coverage. Therefore, you will need to find coverage elsewhere, often through a high-risk insurer, which will come with higher premiums.
What Happens if Your Policy Isn’t Renewed?
If your insurance provider decides not to renew your policy, there are a few reasons why. Common reasons include your record having multiple at-fault accidents, unpaid premiums, and a collection of serious driving convictions. When your policy is not renewed, insurers in Ontario must give at least 30 days written notice before issuing a non-renewal. In the event of non-renewal, you will need to obtain coverage from another insurance provider or a high-risk provider. High-risk insurance tends to be more expensive, but it will help keep the coverage you need in place.
Accidents, Claims, and Your Driving Record
Accidents, especially those in which you are at fault, play a significant role in renewals. Most provinces allow insurers to look back at your driving records for the past six years. So, an at-fault accident can increase your rate for multiple renewal cycles. However, it is worth noting that everything is on a case-by-case basis. While an at-fault accident can increase your rates, a not-at-fault accident may not impact your premium rate at all.
Moreover, some insurers also offer accident forgiveness programs that protect your first at-fault accident from impacting your record. If you would like to learn more, you can read our article on the subject linked above.
How to Protect Your Driving Record
Drive Carefully
Safe driving is the simplest and most effective way to protect your insurance record. Remembering to follow the speed limit, keep a safe distance from other drivers, and stay alert while driving helps reduce the risk of tickets and collisions. Careful driving not only avoids costly claims but also builds a consistent history of responsible driving. Not only is that great for maintaining good driving habits, but it’s also something insurers reward with lower premiums and smoother renewals.
Pay Your Fines Promptly
Unpaid tickets can quickly become more serious issues. Overdue fines may lead to license suspensions or additional penalties, both of which can appear on your driving record. Even if the ticket itself doesn’t directly affect your insurance, a suspended license or collection notice will. Paying fines on time helps maintain a clean record and prevents complications when your insurer reviews your renewal.
Check Your Driving Record Regularly
It’s always a good thing to stay informed. So, reviewing your driver’s abstract every year or two through your provincial licensing authority is a great habit to create. However, errors do occur, and the record can have discrepancies. For instance, a ticket may remain listed after it has been withdrawn or paid. Confirming that your record is accurate ensures your insurer isn’t basing renewal decisions on incorrect information.
Ask About Accident Forgiveness
As mentioned before, many Canadian insurers offer accident forgiveness or conviction forgiveness programs to reward long-term safe drivers. These programs can protect you from a rate increase after your first at-fault accident or minor violation. While eligibility requirements vary by company, adding forgiveness coverage can be a worthwhile safeguard if you’ve maintained a clean record for several years.
Final Thoughts: Protecting Your Driving Record and Keeping Auto Insurance Costs Low
Your driving record plays a major role in your Ontario car insurance renewal and the rates you pay each year. Maintaining a clean record by avoiding tickets, collisions, and claims not only ensures smoother renewals but can also help you qualify for lower premiums and additional discounts. If your insurer reviews your record and sees consistent safe driving, you’re more likely to benefit from stable or reduced rates. However, multiple violations or at-fault accidents can lead to higher costs or even non-renewal. To stay ahead, regularly review your driver’s abstract, pay fines promptly, and consider adding accident forgiveness to your policy. For personalized advice on how your driving history affects your auto insurance rates in Ontario, speak with an isure insurance broker today — we’ll help you find the best coverage and savings options for your needs.
Drive with Confidence
Request your free car insurance quote now and get the coverage you deserve.
Ordering a copy of your driving record or abstract can Read more
A common misconception when drivers discuss their driving record and Read more
Don't let an at-fault accident tarnish your driving record. An Read more
