Who Is A High-Risk Driver?
High-risk car insurance is a type of auto insurance that is designed for drivers who pose a higher risk to insurance companies than the average driver. This can be due to various factors, including a history of accidents, DUI convictions, poor driving record, multiple traffic violations, and so on.
High-risk drivers typically have a harder time finding affordable car insurance coverage, as insurance companies consider them more likely to file a claim. However, high-risk insurance policies are available from some insurance providers, which can help these drivers obtain the coverage they need. These policies typically come with higher premiums, but they can also provide drivers with peace of mind knowing they are protected on the road.
How Much Does High-Risk Car Insurance Cost In Canada?
The cost of high-risk car insurance in Canada can vary significantly depending on a number of factors such as the driver’s age, driving history, type of vehicle, and location. Additionally, insurance rates can also vary between provinces due to differences in regulations, coverage options, and other factors. However, to give you a rough idea of the average cost of high-risk car insurance in Canada by province, here are some estimates based on recent data:
- Ontario: According to the Insurance Bureau of Canada, the average cost of car insurance in Ontario was $1,505 in 2020. However, for high-risk drivers, rates can be significantly higher, with some estimates suggesting that high-risk drivers in Ontario may pay anywhere from $2,500 to $5,000 or more per year.
- Quebec: In Quebec, the average cost of car insurance in 2020 was $717. High-risk drivers in Quebec may pay higher rates, but they may also have access to a government-run insurance system that can provide more affordable coverage.
- Alberta: The average cost of car insurance in Alberta was $1,316 in 2020. High-risk drivers in Alberta may pay higher rates than this, with some estimates suggesting that rates could be as high as $4,000 or more per year.
- British Columbia: Car insurance rates in British Columbia are among the highest in Canada, with the average cost of insurance in 2020 estimated to be around $1,832. High-risk drivers in BC may pay significantly more than this, with rates potentially reaching $5,000 or more per year.
- Manitoba: In Manitoba, car insurance is provided by a government-run system, with rates determined based on a driver’s risk profile. For high-risk drivers, rates can be significantly higher than the average, with some estimates suggesting that rates could be as high as $3,000 to $4,000 per year.
Please keep in mind that these are just rough estimates based on recent data, and actual rates can vary depending on individual circumstances. It’s best to contact insurance companies or independent brokers to get a personalized quote for high-risk car insurance coverage.
Why Do High-Risk Drivers Have To Pay Higher Premiums?
High-risk drivers are considered to pose a greater risk of making a claim than other drivers, which means that insurance companies see them as a higher risk. As a result, high-risk drivers typically have to pay higher premiums to cover the additional risk they pose. This is because the insurance company needs to be able to cover the costs of any claims that may arise from an accident involving a high-risk driver.
The factors that can contribute to a driver being considered high-risk include having a poor driving record, such as several accidents, moving violations, or DUI convictions; being a young or inexperienced driver; and having a history of traffic law violations. In addition, certain factors such as the type of car driven and the location of the driver can also contribute to higher insurance premiums for high-risk drivers.
How Can I Get Cheap High-risk Car Insurance in Canada?
Getting cheap high-risk car insurance in Canada can be challenging, as high-risk drivers are typically charged higher rates than standard drivers. However, there are a few strategies that you can try to lower your insurance costs:
- Shop around: Compare rates from multiple insurance providers to find the most affordable coverage for your needs. Independent insurance brokers who specialize in high-risk insurance can help you find the best rates.
- Take a driver improvement course: Completing a driver improvement course can demonstrate to insurance providers that you are committed to improving your driving skills, which may lead to lower rates.
- Choose a less expensive car: High-performance or luxury cars often come with higher insurance rates, so choosing a more affordable car may lead to lower insurance costs.
- Increase your deductible: Raising your deductible (the amount you pay out-of-pocket before insurance coverage kicks in) can lower your monthly premiums. However, be sure to choose a deductible that you can afford in the event of an accident.
- Ask about discounts: Many insurance providers offer discounts for various reasons, such as bundling multiple policies, being a good student, or having a clean driving record. Ask your provider about any available discounts that you may qualify for.
- Improve your credit score: A better credit score can lead to lower insurance rates, as insurance providers often use credit scores as a factor in determining rates.
It’s important to note that high-risk drivers will still typically pay higher rates than standard drivers, but taking these steps can help to lower your costs. Additionally, it’s important to work with an insurance provider or independent broker who specializes in high-risk insurance to ensure that you are getting the right coverage for your needs.
The length of time that a driver is considered a high-risk driver in Canada can vary by province and by individual circumstances. In general, high-risk driver status is assigned to drivers who are considered to be at a higher risk of accidents or insurance claims due to factors such as a history of traffic violations, accidents, or other driving-related offenses.
Here’s a general overview of how long a driver may be considered high-risk in different provinces in Canada:
- Ontario: In Ontario, drivers who have been convicted of certain traffic offenses may be considered high-risk for up to 3 years, depending on the offense. For example, a DUI conviction can result in high-risk status for 3 years, while a speeding ticket may result in high-risk status for 3 years.
- Quebec: In Quebec, the SAAQ (Société de l’assurance automobile du Québec) uses a “driver record point system” to assess drivers’ risk levels. Depending on the number of points accumulated, a driver may be considered high-risk for up to 3 years.
- Alberta: In Alberta, high-risk status is generally assigned to drivers who have had multiple at-fault accidents or serious driving-related convictions within a 3-year period. The length of time a driver remains high-risk can vary based on the specific circumstances.
- British Columbia: In British Columbia, high-risk status is generally assigned to drivers who have been convicted of certain driving offenses, such as DUI or excessive speeding. The length of time a driver remains high-risk can vary based on the specific circumstances.
- Manitoba: In Manitoba, high-risk status is generally assigned to drivers who have had multiple at-fault accidents or driving-related convictions within a certain period. The length of time a driver remains high-risk can vary based on the specific circumstances.
It’s worth noting that high-risk status can have a significant impact on insurance rates and eligibility for certain types of coverage, and it’s important to work with an insurance provider or independent broker to understand the specific implications for your individual circumstances.
How Do I Get Out Of High-Risk Insurance?
If you’re considered a high-risk driver, there are a few steps you can take to try to reduce your insurance premium and eventually get out of high-risk insurance. Here are some tips:
- Improve your driving record: Avoid getting any more tickets or moving violations. The more violations you have, the more likely you are to be considered high-risk.
- Take a driving course: Taking a defensive driving course or a driver improvement course can demonstrate to insurance companies that you’re making an effort to improve your driving skills and reduce your risk on the road.
- Increase your deductible: By increasing your deductible, you’ll lower your monthly premium. However, you’ll also have to pay more out-of-pocket if you get into an accident.
- Shop around for insurance: Compare quotes from different insurance companies to see if you can find a better deal. Some insurance companies specialize in providing coverage for high-risk drivers, so it may be worth it to see if one of these companies will offer you a better rate.
- Consider usage-based insurance: Some insurance companies offer usage-based insurance programs that track your driving habits and reward safe driving with lower premiums.
Top 10 High-Risk Insurance Companies In Canada
When you are found to be a high-risk driver, it is highly recommended that you use an insurance company that specializes in high-risk car insurance policies. The agents within these companies are highly trained high-risk auto insurance specialists. They can help you to obtain high-risk auto insurance and guide you in getting back on track to establish a better driving record.
- Intact Insurance
- SGI Canada
- Facility Association
Impact Of Being A High-Risk Driver
Being considered a high-risk driver in Canada can have a significant impact on your car insurance premiums. High-risk drivers are often charged higher premiums because they are seen as a greater risk to car insurance providers. This is due to a variety of factors, such as a history of accidents, DUIs, speeding tickets, or other driving-related infractions.
If you are a high-risk driver, you may also have difficulty finding an insurance company willing to provide coverage. Some companies may refuse to insure you altogether, while others may offer you coverage at a significantly higher premium. In some cases, you may be forced to purchase insurance from a high-risk insurance provider, which can be more expensive than traditional car insurance.
Overall, being a high-risk driver can be a financial burden and make it more difficult to obtain adequate car insurance coverage. It’s important for high-risk drivers to take steps to improve their driving record and reduce their risk profile to lower their insurance costs.
How To Avoid Becoming A High-Risk Driver
Here are some tips to help you avoid becoming a high-risk driver:
- Obey traffic laws: Following the rules of the road and avoiding traffic violations can help keep your driving record clean.
- Be mindful of your speed: Speeding is a major cause of accidents, so make sure to drive at a safe and appropriate speed for the road conditions.
- Avoid distractions: Distracted driving is a major cause of accidents. Avoid using your phone, eating, or engaging in other activities while behind the wheel.
- Don’t drive under the influence: Driving under the influence of drugs or alcohol is illegal and can result in serious consequences, including a criminal record and a high-risk insurance rating.
- Get enough sleep: Driving while drowsy is dangerous and can impair your reaction time and judgement.
- Maintain your vehicle: Keeping your vehicle in good condition can help reduce the risk of accidents and breakdowns.
- Take a driver education course: Taking a driver education course can help you improve your driving skills and reduce your risk of becoming a high-risk driver.
By following these tips, you can help reduce your risk of becoming a high-risk driver and keep your insurance rates low.
Here are some frequently asked questions about high risk car insurance in Canada:
- What is high risk car insurance?
- High risk car insurance is insurance coverage for drivers who are considered to be at a higher risk of accidents or claims due to factors such as age, driving record, or the type of car they drive. Drivers who require high risk car insurance may have to pay higher premiums or have limited coverage options.
- What factors may make me a high risk driver?
- Factors that may make you a high risk driver include:
- A history of accidents or claims
- A history of traffic violations or driving offenses
- A lack of driving experience or a new driver
- A history of lapses in insurance coverage
- Driving a high-performance or modified car
- Being a young or senior driver
- How can I get high risk car insurance?
- To get high risk car insurance, contact your insurance provider and ask about their coverage options for high risk drivers. You may also want to shop around and compare rates from multiple providers to find the best coverage and price for your needs.
- Will I have to pay higher premiums for high risk car insurance?
- Yes, you may have to pay higher premiums for high risk car insurance because it is considered to be a higher risk for insurance providers. However, the specific impact on your premiums will depend on several factors, including your driving record, location, and insurance history.
- What type of coverage is available for high risk car insurance?
- The type of coverage available for high risk car insurance may vary depending on the insurance provider, but typically includes the same types of coverage as regular car insurance, such as liability, collision, and comprehensive coverage.
- Can I still get insurance if I have a DUI or other serious driving offense?
- Yes, you can still get insurance if you have a DUI or other serious driving offense, but you may have to pay higher premiums or have limited coverage options. Some insurance providers may also require additional documentation or an SR-22 form to verify your insurance coverage and ensure that you are meeting your legal requirements.
- How can I lower my high risk car insurance premiums?
- To lower your high risk car insurance premiums, consider taking a defensive driving course, installing safety features or anti-theft devices on your car, or choosing a car with a lower insurance rating. You may also want to compare rates from multiple insurance providers to find the best coverage and price for your needs.
- How long will I need high risk car insurance?
- The length of time you will need high risk car insurance may vary depending on the reason for being considered a high risk driver. For example, if you have a history of accidents or claims, you may need high risk car insurance until your driving record improves. If you are a new driver, you may need high risk car insurance until you gain more driving experience.
- Can I switch from high risk car insurance to regular car insurance?
- Yes, you can switch from high risk car insurance to regular car insurance if your driving record or other factors improve. However, you may have to provide proof of improvement and meet certain criteria to be eligible for regular car insurance.
- What should I do if I am having trouble finding high risk car insurance?
- If you are having trouble finding high risk car insurance, consider working with a specialized insurance broker who can help you find coverage options that meet your needs. You may also want to contact your provincial insurance regulator for information and resources on high risk car insurance.
- How can I improve my driving record and lower my risk level?
- To improve your driving record and lower your risk level, consider taking a defensive driving course, following traffic laws and regulations, maintaining a safe driving distance, and avoiding distractions while driving. Additionally, be sure to pay attention to your insurance coverage and make any necessary updates or changes as your driving record improves.
- Can high risk car insurance be cancelled or non-renewed?
- Yes, high risk car insurance can be cancelled or non-renewed by the insurance provider. However, there may be legal requirements or other considerations that affect the ability of the insurance provider to cancel or non-renew the policy. If you have questions or concerns about the cancellation or non-renewal of your high risk car insurance, contact your insurance provider or provincial insurance regulator for more information.
- Can high risk car insurance cover me for international travel?
- High risk car insurance may not cover you for international travel, as coverage may be limited to specific locations or jurisdictions. If you plan to travel outside of Canada, be sure to check your insurance policy or contact your insurance provider to verify your coverage.
- Can I get high risk car insurance if I have a suspended license?
- You may be able to get high risk car insurance if you have a suspended license, but the specific requirements and limitations may vary depending on the insurance provider and the reason for the suspension. Some insurance providers may require additional documentation or an SR-22 form to verify your insurance coverage and ensure that you are meeting your legal requirements.
- What should I do if I can’t afford high risk car insurance?
- If you can’t afford high risk car insurance, consider talking to your insurance provider about your options and any available discounts or incentives. You may also want to shop around and compare rates from multiple providers to find the best coverage and price for your needs. Additionally, consider adjusting your coverage or choosing a car with a lower insurance rating to help lower your premiums.
- How can I verify that my insurance provider is licensed and legitimate?
- To verify that your insurance provider is licensed and legitimate, check with your provincial insurance regulator to ensure that the provider is authorized to sell insurance in your province. Additionally, research the provider’s reputation and customer reviews, and be wary of any providers that require payments or personal information before providing coverage or documentation.
- What should I do if I have a claim while under high risk car insurance?
- If you have a claim while under high risk car insurance, contact your insurance provider immediately and provide all necessary documentation or information. Be sure to follow the claims process and any instructions or requests from your insurance provider. Additionally, be sure to review your policy and understand your coverage limits and any deductibles or other fees that may apply.
- What types of coverage are not available with high risk car insurance?
- The types of coverage that are not available with high risk car insurance may vary depending on the insurance provider, but typically include coverage for optional add-ons or features, such as rental car coverage or roadside assistance. Additionally, high risk car insurance may have limited coverage options for collision or comprehensive coverage.
- Can I get high risk car insurance as a young driver?
- Yes, you can get high risk car insurance as a young driver, but you may have to pay higher premiums or have limited coverage options. Young drivers are often considered to be a higher risk due to their lack of driving experience and may require additional training or certification to qualify for certain types of coverage.
- Can high risk car insurance cover me for business use of my car?
- High risk car insurance may cover you for business use of your car, but the specific requirements and limitations may vary depending on the insurance provider and the nature of your business use. Some insurance providers may require additional documentation or coverage options to ensure that you are properly protected while using your car for business purposes.
- How can I choose the best high risk car insurance provider?
- To choose the best high risk car insurance provider, consider factors such as the provider’s reputation, customer service, coverage options, and rates. Research multiple providers and compare rates and coverage options to find the best fit for your needs. Additionally, consider asking for recommendations from friends or family members who have had similar insurance needs.