Am I a high-risk driver?
Do I need high Risk Auto Insurance? What is high Risk Insurance?
If you have these questions, then you are not alone. A high percentage of Ontario drivers are high risk due to several reasons. In general, High-Risk Auto Insurance is a term used for high risk drivers or high-risk automobiles. Yes, you read that right High-Risk Automobiles. If your vehicle is modified to enhance the performance, you need high risk auto insurance. Since the vehicle is modified, regular auto insurance companies do not have a method to rate it appropriately. Hence, they will ask you to insure it with high risk carrier. Such vehicles are insured through the facility association in Ontario. Obtaining insurance for a modified vehicle can be tricky but its not impossible. Your local insurance broker can help you with it. It is important to know that you should inform your insurance provider that your vehicle is modified, customized in any shape or form. If such information is withheld from the insurance company and a claim arises there is high chance that the claim will be denied, and your policy will be cancelled for misrepresentation.
Now let us look at a High-Risk driver. If you are looking for High Risk Auto Insurance, then it means you are aware you have some issues with your Auto Insurance in the past. At a driver level it is due to your driving record. The 3 factors that determine your Insurance Premiums is your Driving Record, Type of Automobile and Your Postal Code. A driving record comprises of Accidents, Convictions, License Suspensions, Non-pay cancellations. Please see below how the driving record make you a high-risk driver.
· Accidents- Only At fault accidents within past 6 years (for some companies 5 years) are penalized against you. If you have 2 or more at fault accidents in the past 6 years (for some companies 5 years) then you are a high-risk driver. If you want to find out when you are at fault please see the link - www.ontario.ca/laws/regulation/900668
· Suspensions – Driver License suspension can result from an unpaid fine, Driving under influence, medical reasons etc. Only those suspension that are a result of a driving offence are rateable or penalized. Typically one suspension will make you high risk or regular insurance companies will not provide favorable rates.
· Convictions- The big one yet the most complicated one. There are 3 categories of tickets-Minor Convictions, Major Convictions and Serious/Criminal Convictions. I will make it simple to understand. Within past 3 years If you have ONE major conviction or One Serious/Criminal Conviction you are considered high risk. Within past 3 years if you have 4 (for some companies it 3 minor convictions) or more convictions then you are classified a high-risk driver.
· Non-Payment Cancellation- This is a unique one as it is not due to any driving issues, however two or more non pay cancellations can result in you being a high risk driver.
Sometimes you have 2 minor conviction in past 3 years and a small at fault parking lot accident in past 6 (for some companies 5 years) years. This classifies you as a high-risk driver too. Such combinations exist for all the above-mentioned issues. Hence only a knowledgeable broker can help you get auto insurance at a reasonable cost.
At Aaxel Insurance Brokers we provide a plan to help you come back to the regular auto insurance companies. Our plan is customized according your personal circumstances. So call us at 289 274 4807 for a quote for your High-Risk Auto Insurance.