How High Risk Car Insurance Works in Ontario

Insurance providers tend to charge higher premiums for high risk drivers as they anticipate filing more claims than average. You can avoid becoming high-risk by staying out of trouble while driving and keeping your rates as low as possible.

Standard auto insurers usually allow one at-fault accident before considering you high risk, however multiple traffic tickets or gaps in coverage could push you into that category.

What Is a High-Risk Car?

Auto insurance companies use risk analysis to determine the cost of providing car coverage. Drivers involved in at-fault accidents, DUI/DWI convictions or with past lapses in coverage could be considered high-risk and may pay more for auto coverage than drivers with spotless records.

On average, one at-fault accident will increase your car insurance rates by 50%; depending on its type and if there was bodily injury involved, premiums could go even higher. Receiving multiple speeding tickets may also raise premiums as each violation adds points towards becoming a high-risk driver and raising car insurance rates accordingly.

If you’re charged with a major traffic violation such as DUI or hit-and-run, such as these will appear on your driving record for several years.

Geico stands out as an insurer that consistently offers low rates to high-risk drivers with an at-fault accident, DUI charge or history of car insurance lapses. Other insurers such as The General, State Farm and Good2Go offer affordable policies as well. Some agents or brokers also provide nonstandard car policies which might provide more suitable solutions.

How Do You Identify a Risk Driver?

Insurance costs more for high-risk drivers because they are more likely to file claims. Exact rates will depend on your state and insurer; typically 10%-50% more than what a lower risk customer would pay.

An array of factors can determine whether or not you’re considered a high-risk driver, including age, multiple traffic violations or at-fault accidents and having low credit. Furthermore, newly licensed drivers or those without car insurance for extended periods could also be considered high risk drivers.

Your insurance rates can be significantly decreased and avoid being classified as high-risk drivers by taking steps such as improving your credit score and shopping around for cheaper rates. Furthermore, taking defensive driving courses or maintaining a clean record throughout your policy term may also help.

Geico and State Farm may offer high-risk policies; otherwise, nonstandard providers or residual market plans might provide better options. While these may be costly, these plans often offer tailored coverage according to your individual needs with provisions like step-down provisions that reduce liability coverage amounts in case another driver uses your car.

What Makes You a High Risk Car Driver in Ontario?

Being labeled as a high risk driver can have devastating repercussions for your car insurance. Being classed as such could mean higher premiums or even denial to renew. Although each insurance provider uses different criteria when classifying high risk drivers, there are certain common traits which could put you into this category.

Driving Record: Traffic tickets, at-fault accidents and other incidents on your record can impact car insurance rates significantly; more incidents equal higher risk.

Age: Young drivers, particularly those just getting their license, can often be considered high-risk drivers due to a lack of driving experience and the higher likelihood they face of making errors behind the wheel that could cause collisions.

Vehicle Types: Your type of car can also have an effect on your insurance rates, with luxury or modified performance vehicles likely costing more to insure than others.

Other factors that could land you in the high-risk category include criminal speeding, road rage and hit-and-runs. It is possible to move out of this category by adopting safer driving habits and maintaining a clean driving record; however, this process takes time. If traditional auto insurance cannot provide enough coverage for you, facility insurance may provide some financial relief; facility insurers pool funds together in an insurance pool exclusively designed to meet those with no access to traditional policies.

How Can I Reduce My High-Risk Insurance?

Car insurance is a necessity for most drivers, but finding affordable coverage can be more challenging if your driving history includes violations and accidents. Drivers needing high-risk auto insurance are usually required to sign up with assigned risk plans offered through their state Department of Insurance; this type of policy pools together other overly-risky drivers into an insurance pool to share premium costs among participants. Although assigned risk plans tend to cost more than standard auto policies, there may still be ways you can save money on premium costs.

Car insurers use multiple factors to evaluate how risky you are, including age, driving record, credit score and zip code – even your car’s safety ratings and theft protection features can have an effect. While you cannot control age or your tickets/accident history directly, there are things you can do to reduce premium costs:

Start by gathering quotes from multiple providers offering high-risk auto insurance. Compare rates for similar coverage levels so that you have an idea of what each provider can provide you. Also consider increasing your comprehensive or collision deductible in order to lower premiums – though be wary as this could increase out-of-pocket expenses should a claim occur.

Reach out to us at 1(905) 335-6925 for a free estimate.

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