The Real Impact of Driving Infractions

Part of the Sutherland Insurance guide to Auto Insurance in Ontario.

Auto insurance is an essential expense for drivers in Ontario. While we all want the best coverage at the most affordable rate, it's crucial to understand the factors that can cause your insurance premiums to soar. One common misconception is that tickets without points won't affect your insurance rates. Today, we're debunking this myth and highlighting other key contributors that can result in higher auto insurance costs.

Driving Infractions: They Count Against You

Many people believe that if they receive a ticket with no demerit points attached, it won't have any impact on their auto insurance premiums. Unfortunately, this is not true. Insurers consider any driving infraction a risk factor, whether or not it comes with demerit points. Common infractions like speeding, running a red light, or failing to yield can signal to insurance companies that you're a higher risk to insure, which can result in a rate increase.

The Three Strikes Rule: High-Risk Markets Await

Another important aspect to consider is that any combination of a total of three cancellations for non-payment, tickets, or accidents within a specific time frame will qualify you for the high-risk insurance market in Ontario. Once you're in this category, you'll notice a substantial increase in your premiums.

What Qualifies as a "Strike":

• Cancellation for Non-Payment: If your insurance policy gets cancelled because you didn't pay the premiums, that counts as one strike.
• Tickets: As discussed earlier, any ticket is a mark against you, whether or not demerit points are involved.
• Accidents: At-fault accidents will also count as a strike and can significantly impact your premiums.

Factors that Can Also Increase Your Rates:

• Location: Living in an area with higher instances of theft or accidents can result in higher premiums.
• Vehicle Type: Sports cars and luxury vehicles generally come with higher insurance rates.
• Coverage Level: Opting for comprehensive coverage will increase your premiums compared to basic liability coverage.
• Age & Experience: New drivers or those under 25 are generally considered high-risk and will likely face higher rates.

Understanding how your actions on the road can impact your insurance premiums is crucial for every driver. Even seemingly minor infractions can accumulate and push you into the high-risk market, significantly increasing your rates. Always drive responsibly and stay informed about your insurance options to avoid any nasty surprises.

Interested in learning more about how you can protect yourself and your vehicle while keeping your premiums low?

Contact Sutherland Insurance today for expert advice or a quote tailored to your needs.