If your looking for cheaper high risk auto insurance or simply more affordable car insurance, this article may be useful to you!
Being classified as a High Risk Driver usually means that most insurance companies will not insure you because of:
- Too many traffic tickets ( not including parking tickets and red light camera infractions )
- The number of At-Fault accidents
- Cancellations for non-payment
- DUI (Driving under the Influence) or any other criminal conviction.
- Any combination of the above or have other risk-related characteristics
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Standard insurance companies in Ontario may refuse to insure you, or even non-renew based on their approved, underwriting rules and guidelines. However, it does not mean that the insurance industry as a whole can deny you basic auto insurance.
There are a few “non-standard” insurance companies in Ontario who specialize in insuring high-risk drivers. And as a last resort, the Facility Association, an insurance pool that all auto insurance companies contribute and belong to, who make auto insurance available to high-risk drivers unable to find car insurance in the regular market.
Keep track of your tickets and At-Fault Accidents:
It’s important to keep track of when your convictions and other infractions fall off your driving record so that you can shop around for better rates and insurance coverage. You may be very surprised how much your insurance premium can change based on one speeding ticket or At-Fault accident dropping off your record. It also can mean the difference between qualifying for regular costs as opposed to High-Risk insurance costs!
Keep track of when your driving violations drop off your record and get auto insurance quotes every time your record improves. Auto insurance companies are constantly applying new rates and rules to their underwriting criteria each month, making it possible to get cheaper insurance from another company.
But what if you’re already locked into a 6 month or 12-month policy? Breaking your auto policy contract will generate a short-rate cancellation fee, which lessens in dollar amount the longer you’re into the policy term. Many policyholders wait until the renewal period to switch insurance carrier, fearing that financial penalty of breaking the insurance policy contract. However, sometimes it makes financial sense to break the contract!
Here is an example:
- Mr. Smith pays $5,000 a year to insure his vehicle.
- The policy term runs from May 2015 to May 2016
- Mr. Smith has a speeding ticket that comes off his record in August of 2015. If Mr. Smith canceled his policy when that ticket comes off, he would incur a cancellation fee penalty.
- The cancellation fee is $400.00
- Mr. Smith shops around for the same insurance coverage and discovers that because his speeding ticket has dropped from his record he now qualifies for standard market rates and was quoted $2,000 for an auto policy of comparable coverage, starting August 2015 to August 2016.
- Although he was charged $400.00 for canceling his policy, he ultimately saved close to $1,600.00. That’s a HUGE saving!
Being stuck in the high risk auto insurance pool isn’t an ideal position for any driver, and there isn’t much you can do to lower your auto insurance other than allowing rateable incidents to lapse with time and to actively look for new auto insurance from a new auto insurance carrier.
Lastly, don’t let a cancellation fee discourage you from switching insurance companies as there could be a cost savings opportunity by breaking the contract!
- Mark the dates down on your Google Calendar
- Insurance companies rate traffic tickets based on the conviction date, not on charge date
- Contact your Insurance Broker or Agent to ask for another quote which reflects your updated driving status and experience. Remember, sometimes it makes sense to BREAK THE CONTRACT!