Auto Insurance High Risk Drivers Ontario

Auto Insurance for High Risk Drivers in Ontario

What is High Risk Driving?

High risk driving is a term used to describe a driver who is more likely to be involved in a car accident than the average driver. This can be due to a variety of factors such as a poor driving record, a history of reckless driving or even just being a younger driver. In Ontario, high risk drivers are typically charged higher premiums for auto insurance coverage due to the increased risk of a potential claim.

Who is Considered a High Risk Driver?

Generally, anyone who has been convicted of a driving-related offence such as speeding, careless driving, impaired driving or even driving without insurance is considered a high risk driver. In addition, drivers with a history of multiple auto insurance claims, young drivers and drivers with a poor credit history can also be considered high risk drivers.

How Does High Risk Driving Affect Auto Insurance Premiums?

Auto insurance companies in Ontario use a variety of factors to determine a driver’s risk level, including driving record, location, age and insurance history. Drivers who are deemed to be high risk are generally charged higher premiums for auto insurance coverage due to the increased probability of a potential claim. In some cases, high risk drivers may even be denied coverage from some insurance providers.

What Are the Options for High Risk Drivers?

Fortunately, there are options available to high risk drivers in Ontario. The Ontario government has a high risk driver program called Facility Association, which provides auto insurance coverage to high risk drivers who may have difficulty obtaining coverage from traditional insurance providers. The Facility Association is funded by premiums charged to its members and is administered by the Insurance Bureau of Canada.

How Can High Risk Drivers Lower Their Auto Insurance Premiums?

Although high risk drivers may have to pay higher premiums for auto insurance coverage, there are still ways to lower these premiums. One option is to consider increasing your deductibles. A higher deductible will reduce the amount of money paid out by the insurance company in the event of a claim and may result in lower premiums. Additionally, shopping around for the best rate available and taking a defensive driving course are both good ways to potentially reduce premiums.

Conclusion

High risk drivers in Ontario may have difficulty obtaining auto insurance coverage due to their increased risk of a potential claim. Fortunately, there are options available, such as the Facility Association, to provide coverage to high risk drivers. Additionally, there are still ways to lower premiums such as increasing deductibles, shopping around for the best rates and taking a defensive driving course.