High-risk drivers in Ontario may face challenges in finding affordable car insurance coverage, as insurance companies consider them to be a higher risk for accidents or claims. However, there are still options for high-risk drivers in Ontario to obtain car insurance coverage.
One option is to work with a high-risk insurance specialist, who can help you find insurance coverage that fits your needs and budget. Another option is to consider insurance companies that specialize in high-risk coverage, such as Facility Association or Insurance Company of Prince Edward Island (ICPEI).
It’s also important to work on improving your driving record and reducing the risk factors that led to you being classified as a high-risk driver. This may include taking a defensive driving course, reducing the number of accidents or traffic violations, or reducing the amount of time spent on the road.
Keep in mind that the cost of high-risk car insurance in Ontario can be significantly higher than regular car insurance, so it’s important to compare quotes from multiple insurance companies and look for ways to reduce your risk and lower your insurance costs. An insurance broker can also help you find the best coverage for your specific needs and budget.
What Is Considered to Be a High-Risk Driver?
A high-risk driver is typically considered to be a driver who poses a greater risk of getting into an accident or making a claim than the average driver. This increased risk can be due to a variety of factors, such as:
Poor driving record: Drivers with multiple traffic violations, such as speeding tickets, DUIs, or at-fault accidents, are often considered to be high-risk.
Young age: Younger drivers, particularly those under 25, are often considered to be high-risk due to their lack of driving experience and higher rate of accidents.
High-risk vehicle: Driving a high-performance or luxury car can make you a higher risk for accidents and claims.
Poor credit history: Insurance companies may consider drivers with a poor credit history to be high-risk, as they believe that a person’s credit history is an indicator of their likelihood of making a claim.
High annual mileage: Drivers who log a lot of miles each year are often considered to be high-risk, as they are on the road more and therefore have a greater chance of getting into an accident.
Keep in mind that the factors that determine a high-risk driver can vary depending on the insurance company and the policy. To avoid being classified as a high-risk driver, it’s important to maintain a good driving record and reduce other risk factors, such as reducing your annual mileage or improving your credit score.
Can an Insurance Company Deny Me Insurance As a High-Risk Driver?
Yes, an insurance company can deny coverage to high-risk drivers in some cases. Insurance companies are in the business of managing risk, and if they determine that a driver poses too great a risk of getting into an accident or making a claim, they may choose not to offer coverage.
However, it’s important to note that insurance companies cannot deny coverage to high-risk drivers arbitrarily. In Ontario, the Insurance Act requires insurance companies to offer coverage to all drivers who apply, regardless of their driving record or other factors. If an insurance company denies coverage to a high-risk driver, it must provide a reason for the denial, such as a poor driving record, a history of at-fault accidents, or a history of making excessive claims.
If you have been denied coverage by one insurance company, it’s important to shop around and compare quotes from other insurance companies to find coverage that fits your needs and budget. You may also consider working with an insurance broker, who can help you find insurance coverage from a company that specializes in high-risk coverage. Additionally, you can take steps to improve your driving record and reduce the risk factors that led to you being classified as a high-risk driver.
How Expensive Is Insurance for High-Risk Drivers?
On average, high-risk drivers in Ontario can expect to pay several hundred dollars per year for insurance coverage, but this can range from a few hundred to several thousand dollars, depending on the driver’s specific circumstances.
The exact cost of insurance for high-risk drivers can vary widely depending on a number of factors, including:
- Driving record: The number and type of traffic violations, at-fault accidents, or other incidents on your driving record will impact the cost of your insurance.
- Age: Younger drivers, particularly those under 25, are often considered to be high-risk due to their lack of driving experience and higher rate of accidents.
- Vehicle: The type of vehicle you drive can also impact the cost of your insurance, particularly if it is a high-performance or luxury car.
- Coverage: The amount and type of insurance coverage you need, such as liability coverage or collision coverage, can also impact the cost of your insurance.
- Location: Insurance rates can vary based on where you live, as certain areas may have higher rates of accidents or theft.
How Do I Save Money As a High-Risk Driver?
As a high-risk driver, it can be more challenging to find affordable car insurance, but there are several steps you can take to help reduce your insurance costs:
- Shop around: Compare insurance rates from several different companies to find the best coverage and rates.
- Improve your driving record: High-risk drivers can work to improve their driving record by avoiding traffic violations and accidents. This may help to reduce the cost of your insurance over time.
- Take a defensive driving course: Completing a defensive driving course can demonstrate to insurance companies that you are a responsible and safe driver, which can help to reduce your insurance costs.
- Consider a telematics program: Some insurance companies offer telematics programs, which track your driving habits and provide discounts based on safe driving.
- Bundle your insurance: Combining your car insurance with other types of insurance, such as home insurance or life insurance, can help to reduce your overall insurance costs.
- Choose a car with lower insurance costs: The type of vehicle you drive can impact the cost of your insurance. Consider purchasing a car with lower insurance costs to help reduce your overall insurance expenses.
- Choose a higher deductible: Increasing your deductible, or the amount you pay out of pocket before your insurance kicks in, can help to reduce your insurance costs. Just be sure to choose a deductible amount that you can comfortably afford to pay in the event of an accident.
By taking these steps, high-risk drivers can find more affordable car insurance that fits their budget and provides the coverage they need.