Navigating the complex landscape of automobile insurance in Ontario can be a daunting task, particularly if you’ve been labelled a ‘high-risk’ driver. This status can significantly impact your insurance premiums and the availability of coverage options. But how long does this ‘high-risk’ label stick with you, and more importantly, what can you do about it?
This blog post aims to demystify these questions and provide pragmatic advice for ‘high-risk’ drivers in Ontario. Buckle up as we delve into the intricacies of high-risk auto insurance and help you navigate the road ahead.
Understanding High Risk Status in Ontario
In Ontario, a driver can be labelled as ‘high-risk’ due to several reasons, each carrying its own weight in determining the length of time you retain this status. Here’s a quick rundown:
- Traffic Violations: Serious or repeated traffic offences can place you in the ‘high-risk’ category. This can include speeding, reckless driving, or driving under the influence. The severity and frequency of these violations play a significant role in determining the duration of your high-risk status.
- At-Fault Accidents: Being at fault in multiple accidents in a short period also tags you as a ‘high-risk’ driver. The more at-fault accidents you’re involved in, the longer you may remain in this category.
- Insurance Lapses: A history of insurance policy cancellations or lapses is another contributing factor. Insurers view consistent coverage as a sign of a responsible driver, so any gap in your insurance history could raise red flags.
Remember, the duration of the ‘high-risk’ status depends heavily on your subsequent behavior on the road and adherence to traffic laws. Demonstrating a consistent pattern of safe driving can help you move out of this category and back into standard coverage.
Reasons for Becoming a High Risk Driver in Ontario
- Young or New Drivers: Inexperience on the road can also factor into a high-risk designation. Young or new drivers are statistically more likely to be involved in accidents due to their lack of experience. Insurance companies often classify these drivers as high-risk, especially if they have other violations or at-fault accidents on their record.
- Poor Credit History: In some cases, your financial behaviour can influence your risk status. Insurance companies may consider drivers with poor credit history as high-risk due to a perceived lack of responsibility.
- High Performance Vehicles: Owning and driving a high-performance or luxury vehicle could potentially place you in the high-risk category. These cars are more likely to be involved in speed-related accidents and are also more expensive to repair or replace, making insurance companies wary.
- Living in High Crime Areas: Your residential location can also impact your risk status. If you live in an area where car theft or vandalism is common, insurance companies may consider you a high-risk driver.
The Time Frame for Being Classified as a High Risk Driver
The time frame for being classified as a high-risk driver in Ontario largely depends on the reason you’ve been assigned this status. For instance, convictions for severe traffic violations like impaired driving can keep you in the high-risk category for up to six years. For less severe convictions like speeding or other moving violations, the duration may range from two to three years.
If you’re deemed high-risk due to at-fault accidents, this status typically lasts for six years. Young or new drivers are usually considered high-risk until they have accumulated enough experience, often a period of about six to ten years with a clean driving record.
Lastly, a poor credit history or living in a high crime area can affect your risk status until the underlying issue is resolved. Always remember, the duration is not set in stone and varies depending on your actions and improvement over time.
Steps To Take to Reduce Your Insurance Premiums When You Are High Risk
While being labeled as a ‘high-risk’ driver can be disheartening, there are several proactive steps you can take to reduce your insurance premiums:
- Improve Your Driving Record: The most effective way to lower your risk status and, subsequently, your insurance premium is by driving safely. Avoid speeding, reckless driving, and other traffic violations. The cleaner your record, the more likely you are to shed the ‘high-risk’ tag.
- Attend a Driver’s Training Course: Completing a recognized driver’s training course can demonstrate your commitment to safe driving. Insurance providers often consider this when determining your risk status and premium.
- Maintain Continuous Insurance Coverage: Avoid lapses in your insurance coverage. Consistent coverage can be seen as a sign of responsibility, which can influence your risk status and premium cost.
- Pay Your Bills On Time: Having a good credit history can also help. By paying your bills on time, insurance companies may deem you as being responsible, which can positively impact your risk status.
- Change Your Vehicle: If you own a high-performance or luxury vehicle, consider switching to a more modest, safer one. This can significantly reduce your risk status and hence, your insurance premium.
- Install Safety Devices: Installing safety devices such as anti-theft alarms or dash cams in your car can help reduce your premium as it lessens the risk to the insurance provider.
Remember, the key is to demonstrate responsible and safe behavior consistently. Over time, this can lead to a reduction in your ‘high-risk’ status and subsequently, lower your insurance premiums.
Finding Affordable Car Insurance When You Are High Risk in Ontario
- Shop Around: Different insurance companies may have different criteria for what constitutes a ‘high-risk’ driver. It’s worth taking the time to compare quotes from various providers to find the most affordable option.
- Consider High-Risk Insurance Companies: Some insurance companies specialize in providing coverage to high-risk drivers. These providers might offer more competitive rates than standard insurance companies.
- Opt for Higher Deductibles: Choosing a higher deductible could result in lower premium costs. However, this means you’ll have to pay more out-of-pocket if you’re involved in an accident, so it’s essential to strike a balance that fits your budget.
- Take Advantage of Discounts: Many insurance companies offer discounts for various reasons, such as completing a driving course, installing safety devices in your vehicle, or bundling your auto insurance with other types of insurance from the same provider.
- Maintain a Clean Driving Record: Ultimately, the best way to secure affordable insurance as a high-risk driver is to improve your driving habits. A clean driving record can significantly reduce your premiums over time.
About Youngs Insurance Brokers Burlington
At Youngs Insurance Brokers Burlington, we understand that navigating the world of high-risk auto insurance can be overwhelming. Our team of experienced insurance professionals is dedicated to helping you find affordable options and providing personalized advice every step of the way. Contact us today to learn more about our services and how we can help you get back on track as a responsible driver in Ontario.
