If you’ve been denied standard auto insurance because of multiple traffic convictions, at-fault accidents, payment issues, or a serious driving offence, you may be considered a high-risk driver in Ontario. High-risk auto insurance provides the mandatory coverage you need to drive legally but often comes with higher premiums and fewer policy options. Here’s what you need to know about high-risk insurance, how long it lasts, and how you can work toward lower rates.
Key Takeaways
- High-risk drivers typically pay higher premiums because insurers consider them more likely to file a claim.
- Common reasons include multiple traffic convictions, at-fault accidents, impaired driving convictions, or policy cancellations for non-payment.
- High-risk insurance includes Ontario’s mandatory auto insurance coverage but may have higher deductibles and fewer payment options.
- Safe driving and continuous insurance coverage can help you return to the standard insurance market over time.
What Is High-Risk Auto Insurance?
High-risk auto insurance is designed for drivers who no longer qualify for standard auto insurance because they present a greater risk to insurers. While the required coverages are the same as those included in a standard Ontario auto insurance policy, high-risk policies generally cost more and may have stricter terms and conditions. Insurance companies assess risk by analyzing your driving record, using factors such as your driving history, claims record, insurance payment history, years of driving experience, and previous licence suspensions or convictions.
Who Is Considered a High-Risk Driver?
You may be considered a high-risk driver if you have one or more of the following:
| Common Reasons for High-Risk Status |
|---|
| Multiple traffic convictions |
| Several at-fault accidents |
| An impaired driving (DUI) conviction |
| A licence suspension |
| A history of policy cancellations for non-payment |
| Driving without insurance |
| A combination of the above |
Every insurer has its own underwriting guidelines, so the factors that result in a high-risk classification may vary. In general, the more driving convictions, accidents, or payment issues you have, the more difficult it becomes to qualify for standard insurance.
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Why Does High-Risk Insurance Cost More?
Auto insurance premiums are based on risk. Drivers with previous accidents, convictions, or insurance payment issues are statistically more likely to make future claims, so insurers charge higher premiums to reflect that increased risk.
High-risk policies may also include:
| Standard Auto Insurance | High-Risk Auto Insurance |
| Lower premiums | Higher premiums |
| More insurer options | Fewer insurer options |
| Flexible payment plans | Payment restrictions may apply |
| Lower deductibles | Higher deductibles may apply |
Although premiums are higher, maintaining continuous insurance coverage is important. Allowing your policy to lapse could make it even more difficult to obtain affordable coverage in the future.
How Long Will You Be Considered High Risk?
High-risk status isn’t always permanent. As your driving record improves, you may once again qualify for standard auto insurance.
Generally:
- Minor driving convictions typically affect insurance rates for about three years.
- At-fault accidents are commonly considered by insurers for up to six years.
- Serious driving offences, such as impaired driving, may affect your insurance eligibility for much longer.
The exact time depends on your driving history and each insurer’s underwriting guidelines.
How Can You Lower Your High-Risk Insurance Premium?
Although you can’t erase past driving incidents, there are steps you can take to improve your insurance profile over time.
Maintain a clean driving record. Avoid additional tickets, accidents, and driving convictions.
Maintain continuous insurance coverage. Paying your premiums on time and avoiding policy cancellations can help keep more insurance options available as your driving record improves.
Compare your options at every renewal. As your driving record improves, you may qualify for additional insurers or lower rates.
Consider bundling your policies. If you’re eligible, combining your home and auto insurance may help reduce your overall insurance costs.
Review your coverage annually. Your insurance needs may change over time. A yearly review with a broker can help ensure your policy still fits your needs.
Work with an insurance broker. Brokers compare coverage from multiple insurance companies and can help identify the most competitive option based on your current driving history.
Standard Insurance vs. High-Risk Insurance vs. Facility Association
| Feature | Standard Insurance | High-Risk Insurance | Facility Association |
|---|---|---|---|
| Who it’s for | Drivers with a clean or average driving record | Drivers with multiple convictions, at-fault accidents, or payment issues | Drivers who have been declined by both standard and high-risk insurers |
| Premiums | Generally the lowest | Higher than standard insurance | Typically the highest |
| Coverage | Mandatory coverages plus optional coverages | Mandatory coverages with optional coverages available, depending on the insurer | Meets Ontario’s mandatory insurance requirements; optional coverages may be limited |
| Payment options | Usually flexible | May require larger down payments or fewer payment options | Payment options vary |
| Availability | Offered by most insurers | Offered by insurers specializing in higher-risk drivers | Available only when other insurance options are unavailable |
| Goal | Maintain preferred insurance rates | Improve your driving record and return to the standard market | Obtain the legally required coverage while working toward qualifying for other insurance options |
Facility Association is designed as a last resort. If you’ve been declined by standard and high-risk insurers, it can help you obtain the auto insurance required to drive legally in Ontario. As your driving record improves, you may become eligible to move back to the high-risk or standard insurance market.
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Get a High-Risk Driver Auto Insurance Quote Today!
Frequently Asked Questions
Does one speeding ticket make me a high-risk driver?
Usually not. One minor traffic conviction alone does not automatically place you in the high-risk category. However, multiple convictions within a short period or more serious offences may affect your eligibility for standard insurance.
Can I return to standard auto insurance?
Yes. Many drivers move back to the standard insurance market after maintaining a clean driving record and allowing previous convictions or accidents to age off their insurance record.
Can I get insurance if I’ve been declined by another company?
Yes. Some insurers specialize in providing coverage for high-risk drivers. If you’re unable to obtain standard insurance, an insurance broker can help you explore alternative options, including insurers that specialize in higher-risk drivers.
What happens if I let my insurance lapse?
A lapse in insurance coverage can make obtaining affordable insurance more difficult and may result in higher premiums when you purchase a new policy. Maintaining continuous coverage is generally recommended whenever possible.
Bottom Line
Being classified as a high-risk driver doesn’t have to be permanent. By maintaining a clean driving record, paying your premiums on time, and reviewing your policy regularly, you can improve your insurance profile and work toward qualifying for standard auto insurance again.
If you’re looking for high-risk auto insurance in Ontario, an experienced insurance broker can compare multiple insurers and help you find coverage that fits your needs and budget.
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