Ontario High-Risk Car Insurance Calculator

Every motorist in Ontario has to get car insurance as per law. There are many factors that are considered while arriving at the rate for insurance premiums. Based on those factors, insurance companies decide if a driver or vehicle is a high risk or low risk insured.

Once you fall into the category of high risk the going does get tough. The number of insurance companies who may want to provide you insurance may be fewer. It may take several years of clean driving record and claims free period for you to be considered to be low risk.

How Much Is High-Risk Car Insurance in Ontario

Car insurance premiums are calculated on criteria directly or indirectly related to the car or the driver. Some factors are simply beyond any one’s control. A not so good driving record reflects the insured’s driving practices. Be it impaired driving, traffic tickets or speeding tickets, they all end up on the abstract. So does the claims history. Any modifications to a vehicle that differentiates it from the stock version also attract higher premiums. Some modifications could make the car less safe and non-conventional. Road rage by over enthusiastic motorists also may lead to a risk-prone driving environment.

Apart from the car, the driver could also play a role in raising insurance premiums with their bad driving habits. By not paying insurance premiums on time, drivers often risk lapse of a policy.  Once the insurance policy lapses, then you may automatically get rated as a high risk. After the age of 55, even a driver with a clean driving record does carry considerable risk to the insurance companies. Based on how much risk you as a driver or your vehicle carries, the insurance premiums may be two times or three times higher than average.

How Does High-Risk Auto Insurance Work in Ontario

Insurance companies check the driver abstract and if it shows two or more accidents even in the last 10 years, you may be a high-risk driver. If you got two or more traffic or speeding tickets that will be a negative too. Each driver varies in the manner in which they are a risk to other drivers on the road.

If you already have car insurance, your provider may increase your premiums higher. But if you try to buy a policy elsewhere, there may not be many insurers who may want to take on your risk. That leaves you with the option of getting a policy through the Facility Association. This association works with a pool of insurance companies and also handles the claims process on their behalf.

What Is High-Risk Car Insurance Called

There is a new type of insurance used by certain approved insurance companies for insuring a high risk. This is called Usage Based Insurance (UBI)[1]. As per this insurance, those drivers with good driving habits that get monitored by a device could enjoy discounts up to 12%. This may change on each renewal. High-risk drivers may at least have an opportunity to better their driving habits and then move on to low-risk category gradually. As time passes and violations get off the abstract, the high risk drivers can again look to get better quotes.

[1] https://www.fsco.gov.on.ca/en/auto/autobulletins/2013/Pages/a-05-13.aspx

2018-09-16T21:41:51+00:00