Many drivers in Ontario are classified as high risk due to factors like past accidents, traffic violations, lack of driving experience for young drivers, and more. This can make finding affordable car insurance challenging. Car insurance for high risk drivers ontario has higher premiums to match the increased risk, but there are still options to find cheaper high risk auto insurance in Ontario. This guide covers what high risk car insurance entails, how to shop for the best rates, and tips to save on premiums.
- What Makes a Driver High Risk in Ontario?
- Comparing Quotes from Auto Insurance Companies
- Getting the Minimum Mandated Coverage in Ontario
- Using Winter Tires for Savings on Ontario Auto Insurance
- Tips to Find Cheaper High Risk Car Insurance in Ontario
- Using High Risk Auto Insurance Facilities
- Maintaining Good Driving Habits
- Understanding How Insurance Risk Works
- Conclusion
What Makes a Driver High Risk in Ontario?
There are certain criteria in Ontario that will cause you to be labeled as a high risk driver when applying for car insurance. Some major factors that determine your risk level and premium prices include:
- Less than 6 years driving experience
- Speeding tickets, accidents, impaired driving charges on record
- Lapses in previous insurance coverage
- Poor credit score
- High-risk vehicle – sports cars, modified cars
Car insurance companies determine risk based on these attributes. The more infractions or negative marks on your history, the higher your auto insurance rates will be. High risk car insurance ontario is pricier because insurers consider you more likely to file a claim.
Comparing Quotes from Auto Insurance Companies
The best way to find cheaper car insurance for high risk drivers ontario is to compare quotes from multiple providers. While one company may charge extremely high premiums due to your risk factors, another insurer may offer better high risk auto insurance rates.
When getting quotes, provide the same coverage details to each company this includes your driving record, vehicle details, address, desired coverage types and limits. This creates an apples to apples comparison to accurately see which insurer offers the most competitive high risk car insurance ontario pricing.
As high risk drivers have more limited options, get quotes from these top providers in Ontario:
- Facility Association
- CAA
- Belairdirect
- Certas Home and Auto
- Traders Insurance
Some smaller insurance companies also specialize in non-standard auto insurance policies made for high risk drivers. Checking with experts or brokers can help uncover additional options.
Getting the Minimum Mandated Coverage in Ontario
As auto insurance is mandatory in Ontario, finding the cheapest way to get insured is key for high risk drivers. Ontario requires you carry a minimum of $200,000 third party liability, accident benefits, direct compensation property damage, and uninsured auto.
Car insurance for high risk drivers ontario starts at around $350 per month for basic minimum coverage. By focusing on just mandatory coverage instead of adding extras like collision, comprehensives, or endorsements, high risk drivers can find cheaper overall rates. Then you can slowly work to improve your record over the years to access cheaper insurance down the line.
Using Winter Tires for Savings on Ontario Auto Insurance
As auto insurance rates in Ontario are partly determined based on risk factors like weather conditions, using winter tires can lead to savings on your car insurance.
The use of winter tires (between October and May) leads to better control, braking, acceleration, and handling on snow and ice covered roads. Statistics show winter tires reduce collisions and fender benders.
Therefore, car insurance companies reward customers in Ontario who install four winter tires on their vehicle. You can save 5-10% per year through winter tire discounts, saving high risk drivers hundreds of dollars annually on car insurance for high risk drivers ontario.
Checking driving records twice per year for any improvements is also recommended, as your risk level may be lowered leading to better insurance rates over time.
Tips to Find Cheaper High Risk Car Insurance in Ontario
Along with getting quotes from several insurers and only paying for mandatory coverage, here are some additional tips to save on car insurance for high risk drivers ontario:
- Ask about group insurance rates if you belong to any alumni associations, employer groups, unions, or clubs. These partnerships lead to exclusive discounted pricing.
- Consider adding an experienced secondary driver with a good driving record to your policy. This can balance out your risk level.
- Pay premiums annually instead of monthly to avoid added service fees.
- Increase deductibles to $1,000+ to lower rates at the expense of more out-of-pocket costs in an accident.
- Take an approved defensive driving course for a discount on premiums.
- Research insurers not using your credit score or accidents older than 6 years to determine your rates.
While high risk auto insurance ontario will still be more expensive than standard policies, following the above tips can lead to significant savings for dangerous drivers needing mandatory coverage.
Using High Risk Auto Insurance Facilities
Each province has a special insurance agency meant as an insurer of last resort for the highest risk drivers unable to find affordable coverage on the regular market.
In Ontario, Facility Association provides basic auto insurance policies at the highest rates available by law. While expensive, it guarantees road coverage so drivers can legally operate vehicles.
Facility Association should be seen as a temporary option until policyholders improve their records enough over the years to access cheaper standard insurance companies again in the future.
Maintaining Good Driving Habits
The best way for high risk auto insurance ontario policyholders to save money over time is by improving their driving habits and records. This means:
- Not getting into any at-fault accidents
- Avoiding traffic tickets for speeding, distracted driving, etc
- Never driving impaired
- Taking defensive driving courses every few years
Careful driving allows you to keep a clean abstract over the years. Most insurers only look back 6 years for infractions and claims when calculating rates.
So remaining conviction-free and accident-free for over 5 years in a row can dramatically lower your auto insurance risk profile. Then insurers will offer you cheaper standard insurance instead of high risk policies.
Understanding How Insurance Risk Works
While it may seem unfair to pay higher premiums, Ontario’s car insurance system works by placing drivers into different risk profiles. People statistically more likely to get into accidents or file claims are placed in higher risk categories.
Higher premium prices account for the increased likelihood of paying out insurance claims. Over time as drivers behave safer on roads, they build up a track record showing they are actually low risk. Then cheaper standard insurance becomes accessible.
So when you are first hit with expensive car insurance for high risk drivers ontario, remember it is meant to be temporary. Maintaining good driving habits over the years earns back your access to affordable auto insurance rates.
Conclusion
Finding affordable car insurance in Ontario gets much harder for drivers labeled as high risk. But understanding what factors determine your risk level, comparing quotes from severalproviders, and sticking to just mandatory coverage keeps rates as low as possible.
The keys are to always drive safely, take advantage of winter tire savings, and be patient until your record can earn you cheaper standard auto insurance once again. Check twice annual abstract updates for progress.
Focus on maintaining good habits behind the wheel, while comparing insurers to find the best high risk car insurance ontario rates for your current situation.
