Every person is unique, and as such, their insurance needs are unique, too. You may have come across “high risk insurance” while shopping for insurance and wonder if it applies to you. We answer your FAQs about what classifies a high risk driver and what that means for high risk auto insurance.


You are considered a high-risk driver if you have a poor driving record and/or insurance payment history. As a high-risk driver, you will not qualify for standard auto insurance rates. Therefore, you will have to purchase non-standard auto insurance, otherwise known as “high risk auto insurance.”


Being classified as a high-risk driver usually means that most insurance companies will not insure you because:

How is high risk different from standard car insurance?

Essentially, there are three criteria that differentiates your standard car insurance policy from a high-risk insurance policy:

1. High risk insurance costs more

The difference can be substantial. Insurers calculate both in much the same way. However, insurance premiums vary depending on the company and their eligibility criteria. Typically, surcharges of 20% or more apply to any convictions and at-fault accidents that you have on your record.

2. Your payment options are reduced

A large portion of drivers are high-risk for financial reasons.  If you have one or more NSF (not-sufficient-funds) within your policy term, your insurer may cancel your policy.  This would launch you into the “High-Risk” bracket.

3.  Your insurance coverage is limited

As a high-risk driver, you will have several limitations placed on your policy, such as:

  • Your liability limits are usually capped at $1 million for your coverage
  • You will pay higher deductibles
  • Exclusions and specific conditions will be placed on your policy

Did you know that limitations on your high-risk policy will not only affect you, the policyholder? It also affects other listed drivers and anyone else living in your household with a valid Ontario driver’s license.


The good news is you will leave the high-risk category once previous tickets or accidents come off your record. In the meantime, it is essential to practice safe driving habits, such as:

  • Avoid distracted or impaired driving. Keep your smartphone and electronics out of sight. Never drive while under the influence of drugs or alcohol. These could lead to a major traffic ticket, license suspension or a serious accident.
  • Follow the rules of the road. Stay within the speed limit, keep a safe following distance and obey all traffic signs.
  • Review defensive driving habits. It may have been a long time since you received your license. So, it couldn’t hurt to review some tips for safe driving under all conditions.
  • Pay your insurance premiums on time. Payment issues and cancellations can keep you in the high-risk category. If you are worried about upcoming payments, your isure broker may be able to make accommodations with your insurance company.


High risk insurance in Ontario is expensive because insurers charge more for drivers with poor driving and/or payment history. The chances of your insurance company having to pay out a high-risk claim is a lot higher compared to a driver with a cleaner record. High risk auto insurance is more expensive than the average cost for car insurance. High risk drivers are more likely to have a claim under their auto policy. Insurance is a pool of money. If more payment comes out to pay claims, more money will have to go back in.


Most insurance companies target drivers with experience and low-risk drivers. If your driving record changes, you are no longer one of their target clients. You will likely find yourself without a policy offer at your next renewal date. In this case, you should seek out an independent insurance broker who represent multiple insurance companies (like isure!) Independent brokers should be able to offer you auto insurance with a high-risk insurer.

Here is a complete list of high risk insurance companies in Ontario, who insure high risk drivers:

  • Jevco Insurance: Jevco is a subsidiary of Intact Insurance.
  • Perth Insurance: Perth is a subsidiary of Economical Insurance.
  • Pafco Insurance: Pafco is a subsidiary of Allstate Insurance.
  • Echelon Insurance: Echelon is a subsidiary of CAA Insurance.
  • Portage Mutual Insurance: Headquartered in Portage La Prairie Manitoba
  • Pembridge Insurance: A division of All State Insurance
  • Intact Insurance: A well-known brand in personal lines insurance. Intact focuses on commercial high-risk auto.
  • Coachman Insurance: Coachman is a subsidiary of SGI.
  • Facility Association: Facility is essentially a risk-sharing pool for high-risk drivers. This is for drivers that are TOO high risk for ALL the high risk insurance companies. Facility is often referred to as the option of last resort. If you are under the highest risk driver category, Facility Association is often the only auto insurance option. Facility is an organization that guarantees insurance coverage for drivers who cannot get it elsewhere.

How long are you considered a high-risk driver in Ontario?

You are no longer a high-risk driver when some or most of your policy infringements fall off your record. Typically, your traffic tickets, suspensions and cancellations for non-payments are removed from your record after three years. At-fault accidents, however, will take up to five years before removal.

If you need high risk auto insurance, contact our isure brokers. They are extremely knowledgable and will shop the market and find you the best coverage for your situation. Some high-risk insurers may offer multi-vehicle discounts or home and auto bundles. This will keep you covered and help reduce premiums. Your broker will provide you guidance on how to improve your driving record and review your policy at each renewal. This will ensure your policy details are updated to move you out of this insurance market as soon as possible.

To learn more about high risk insurance, feel free to contact us any time! We are always happy to walk you through the types of insurance that will best suit your needs at the best rate possible.

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