Home/Car Insurance Resources/DUI Insurance Rates Ontario & Toronto

DUI Insurance Rates Ontario & Toronto

A common question is what are the auto insurance rates after DUI. Car insurance can be expensive even for those who have been able to take advantage of the different types of discounts that may be available for it. Most drivers do not want to do anything that is going to increase the cost. However, there are some who make the mistake of driving under the influence and get charged with a DUI. As a result besides the legal repercussions that can come with costs, now this driver is going to face an increase in their insurance.

How Much Will My Car Insurance Go Up After A DUI?

Increase Auto Insurance Cost

A driver convicted of a DUI can expect to pay three to five times more than their usual car insurance premium.

The Insurance Company will discover the DUI charge and will then make a decision as to what is going to happen with the insurance. It is almost certain the premiums are going to increase significantly. Each company will have its own criteria for how much the insurance costs will increase by. Other factors will be taken into account. They will factor in the region in which you live. They will look at the previous driving history to see if any other claims have been made.

Not Telling Insurance About DUI

If an individual is applying for insurance from a new insurance company after six years they do not have to disclose the DUI.

Does DUI Show Up On Insurance?

To begin with, the Insurance companies could learn about DUI from the driving record.

How Long Does It Take For Insurance To Find Out About A DUI?

When insurance is applied for or renewed this record could be checked. How long a DUI remains on the driving record will depend on the province. In Ontario for example the conviction will be on it for three years. If the licence has been suspended as a result of the DUI then it will remain on the record for six years. This is pretty well standard across Canada.

During this period of six years, it is critically important that the driver maintains a clean driving record during this time. If they do then after this period of time the rates should go back to what is standard at the time.

It does not mean just keeping a clean record from DUI convictions either. There are lots of other factors that go into maintaining a clean driving record. For example speeding convictions. A demerit point system is used to determine the degree of seriousness in a driving infraction in Ontario.  These demerit points will show on the driving record as an accumulation. If too many demerit points are collected it can cause a driver to lose their licence.

For insurance purposes and getting the rates lowered after a DUI it is important not to accumulate any demerit points.

How to Lower Car Insurance After DUI

Save Piggy Bank Money

Car insurance can be lowered after six years of a DUI conviction. Provided the driver maintains a clean record.

Although it is discouraging to have to deal with high insurance premiums, there may be some steps that can be taken to help lower the costs over time.  The big factor here is time. Insurance companies are wary that a DIU won’t happen again, and this could affect the claims that the insured makes. Therefore it is time that is going to determine when the insurance costs are going to come back to the normal range. The question is how much time?

To begin with, the Insurance companies could learn about DUI from the driving record. So when insurance is applied for or renewed this record could be checked. How long a DUI remains on the driving record will depend on the province. In Ontario for example the conviction will be on it for three years. If the licence has been suspended as a result of the DUI then it will remain on the record for six years. This is pretty well standard across Canada.

During this period of six years, it is critically important that the driver maintains a clean driving record during this time. If they do then after this period of time the rates should go back to what is standard at the time.

It does not mean just keeping a clean record from DUI convictions either. There are lots of other factors that go into maintaining a clean driving record. For example speeding convictions. A demerit point system is used to determine the degree of seriousness in a driving infraction in Ontario.  These demerit points will show on the driving record as an accumulation. If too many demerit points are collected it can cause a driver to lose their licence.

For insurance purposes and getting the rates lowered after a DUI it is important not to accumulate any demerit points.

If an individual is applying for insurance from a new insurance company after six years they do not have to disclose the DUI.

Does Insurance Cover Your Car If You Get A DUI?

drunk-driving

It depends on the specific insurance company.

If you have insurance which is mandatory in Ontario your car is insured up until the time you have a DUI charge levied against you. Once the Insurance company becomes aware of this then things will change. It won’t be a matter of a slight increase. There are a good number of Insurance companies that would cancel the policy immediately and refuse to provide coverage in the future.

If you do not disclose your DUI to the insurance provider there could be additional problems. If you had to put a claim into your insurance company and you didn’t disclose the DUI, they could refuse to pay the claim. Even if it was not related to the DUI.

How Long Does A DUI Affect Your Insurance

In Canada, the impaired driving conviction will affect your insurance for a period of six years. Even though the conviction is removed from the driving record after three years. Some insurance companies feel that the driver is still considered high risk therefore will keep the premiums higher.

Every Insurance Company is different but a DUI conviction puts the driver into a high-risk category when it comes to vehicle insurance.

An individual may be insured with a Company that has set a mandate that they will not cancel a policy if one of their insured is convicted of a DUI. Nor will they refuse to renew the policy. There are very few companies that have adopted this approach. However, what they will most likely do is base the premiums on a high-risk scale.

If the Company does cancel the insurance coverage then another option is to apply for insurance with a high-risk insurance provider.

Best-Case Scenario After a DUI

results options

In the best-case scenario for car insurance rates after a DUI, you will see a modest premium increase. This is increasingly unlikely. Your insurance company is not automatically informed when you receive a DUI conviction. However, if you fail to inform them of the conviction and continue to drive, you may not be covered in the event of an accident. When it emerges that you have a conviction, the company is within its rights to void your policy.

Most Likely Scenario After DUI

Most likely, you’ll see a steep insurance increase. Drivers with drunk driving convictions are statistically very likely to be repeat offenders within the next 10 years, and insurance companies are very aware of this. Most have internal rules that they must follow under their charter to sell insurance in Ontario. If your conviction exceeds the company’s guidelines, approved by the FSCO, they have no choice but to deny you coverage.

Worst-Case Scenario

If your driving record isn’t sparkling clean, you could be dropped from your insurance company. Once you’re dropped, you will find it hard to get insurance anywhere else because of your status as a high-risk driver. There are companies that specialize in insuring people with poor driving history, but these companies charge much more than other carriers. Any insurance company can deny you coverage, but the insurance industry as a whole is obligated to offer you a policy as long as you remain legally entitled to drive.

No One Will Insure Me After My DUI. What Do I Do?

denied car insurance

While individual companies operating in the conventional auto insurance market can deny a driver coverage, the insurance industry as a group must offer at least minimum mandatory policies to any motorist legally entitled to drive. The way they accomplish this is through the Facility Association, an industry body tasked with serving the residual auto insurance market, those drivers who can’t obtain auto insurance through conventional insurers.

All auto insurance providers operating in competitive markets in Canada must belong to the Facility Association, which is a non-profit organization. The FA doesn’t underwrite policies itself. Instead, it acts as a go-between with drivers and insurers, providing non-standard policy solutions.

The FA does not operate in the provinces of Quebec, Manitoba, Saskatchewan, or British Columbia, each of which has a public auto insurance program. These provinces have their own solutions for serving the residual market. All remaining provinces and territories use the FA for high-risk drivers.

Insurance policies arranged through the Facility Association aren’t cheap. Drivers with DUI convictions are some of the most likely offenders to repeat, according to industry statistics. Risk factors add up to expensive insurance as well as difficult to obtain policies. The only remedy is time. While traffic convictions typically stay on a driver’s record for three years and accidents six years, the effects of a DUI conviction may last as many as ten years.

One Comment

  1. Allen Adachi February 6, 2021 at 2:33 pm - Reply

    Need a quote for car insurance do you have a number I can call

Leave A Comment

At RateLab, We Compare 30+ Leading Insurers at Once!