High Risk Car Insurance 2024: All you need to know
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Discover the methodologyGot flagged as a high-risk driver by the insurance company? Nothing to worry about, it happens to many people. Luckily, we have high risk car insurance to save the day.
In this guide, we take you through everything you need to know about high risk car insurance, from what it covers, how to secure it, the costs, and strategies to find the cheapest options for your unique situation.
Also, compare your available options for high-risk car insurance in your region by using our free comparator. Pick the one that suits your needs and start saving today.
High Risk Car Insurance Canada: 5 Key Takeaways
- High-risk car insurance is for drivers prone to accidents or violations.
- Premiums are much higher than standard auto insurance.
- You can get lower premiums through clean records or defensive driving.
- Limited options for high-risk coverage — may require specialized insurers.
- Options can vary based on your province and city.
What is high risk car insurance?
High-risk car insurance is car insurance for drivers that insurance companies consider more likely to get into accidents and file claims due to their driving history, including serious traffic violations or accidents.
This type of insurance typically comes with higher premiums as insurers view these drivers as a greater risk. It ensures that individuals with a less-than-ideal driving record can still obtain mandatory car insurance coverage (car insurance is a legal requirement in Canada), albeit at a cost reflecting their heightened risk profile.
If you're considering getting this type of insurance, we suggest you compare different plans using our comparator to get the best deal. Just fill in some basic details and get quotes and all the information you would need from the best providers right here in no time.
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What does high risk car insurance cover?
High-risk car insurance covers the same essentials as standard policies but at higher premiums due to the elevated risk of claims. Key coverages include:
- Third-Party Liability: For injury or damage you cause to others.
- Accident Benefits: Medical, rehabilitation, and income replacement, regardless of fault.
- Collision: Repairs to your vehicle from collisions.
- Comprehensive: Damage from non-collision events like theft or natural disasters.
- Uninsured Automobile: Protection against uninsured drivers and hit-and-run incidents.
What makes you a high risk driver?
Insurance companies look at a bunch of factors to decide if you're a high-risk driver. Here are the common culprits:
- Moving violations: Speeding tickets, running red lights, those kinds of things. A bunch of these can raise your risk rating.
- Accidents: Especially if you were at fault for them. The more accidents, the higher the risk you seem.
- DUI/DWI: This is a big one. Driving under the influence is a serious offence and makes insurance companies very nervous.
- Young driver: Teenagers and young adults are statistically more likely to get into accidents, so they often fall into the high-risk category.
- Lapses in coverage: Letting your insurance lapse can make you seem like a risky driver who might not be very responsible.
- Poor credit history: Believe it or not, your credit score can sometimes play a role in how risky an insurance company thinks you are.
How much is high risk car insurance?
High-risk car insurance can cost more than regular car insurance, but how much more depends on your situation. It's not a one-size-fits-all deal.
The pricing of high-risk car insurance hinges on a driver's past behaviours on the road, such as the accumulation of tickets, involvement in accidents, or having made numerous claims.
It also looks at the continuity and stability of your insurance history, including any lapses or cancellations. Essentially, insurers assess the likelihood of future claims based on these historical indicators, adjusting the cost of insurance to match the perceived risk level.
Good to know
Car insurance rates and regulations vary from one province to another. Therefore, Ontario car insurance policies might not be the same as Alberta or Quebec. You must read the local provincial rules before buying a policy.
High risk car insurance Ontario
Ontario stands out for its higher demand for high-risk insurance. This trend is influenced by its dense population, a greater incidence of insurance fraud, and a notable number of drivers without insurance.
The cost of high risk car insurance Ontario plans significantly surpasses that of standard policies. Drivers categorized as high-risk could face premium increases ranging from a modest 20% to a more drastic 300% or higher. Such steep increases could result in premiums that are two to three times higher than those for regular car insurance.
High risk car insurance Alberta plans are equally expensive considering Alberta tops the list for the most expensive annual auto insurance premiums.
The cost of high-risk insurance also varies significantly across different cities even within Ontario. Areas within the Greater Toronto Area (GTA), such as Brampton, tend to have the highest rates, while high risk car insurance Ottawa plans are generally lower.
Here's a rough idea:
- Think multiples: Compared to regular premiums, you could be looking at paying double or even triple the price.
- Big difference: A typical driver in Canada might pay around $1,500 a year for insurance, whereas a high-risk driver could see that number jump to $3,000 or even $10,000 depending on the severity of their "high-risk" factors.
To give you a better idea, here are high-risk car insurance quotes for Ontario:
| Scenario | Annual premium | % Increase |
|---|---|---|
| Average car insurance price in Ontario | $1,505 | NO |
| 2 or less violations in the last 3 years | $2,107 | +40% |
| 3 or more violations in the past 3 years | $3,010 | +100% |
| Criminal code offence (e.g. DUI, careless driving) | $10,000 | +564% |
You must get personalized quotes to know the exact premium. You can do it right here using our free tool below. Compare the best car insurance coverage options based on your unique needs and get free quotes now.
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How can you get cheap high risk car insurance?
There are ways to potentially lower your high-risk premium. Here are some tactics you can consider:
- Be a clean driver: This might seem obvious, but the best way to show insurance companies you're a lower risk is to drive safely and avoid getting any more tickets or accidents.
- Become a defensive driving expert: Take a defensive driving course! These courses can teach you valuable safe-driving habits and some insurance companies offer discounts for completing them.
- Loyalty is king (or queen): Bundling your car insurance with your home insurance with the same company can sometimes lead to discounts.
- Show off your safe car: Driving a car with anti-theft features and good safety ratings can make you seem like a less risky driver in the eyes of the insurance company.
- Up your deductible: This is a double-edged sword. You can increase your deductible (the amount you pay out of pocket before insurance kicks in) to lower your premium. But remember, if you do get into an accident, you'll have to shell out more cash upfront.
Also, don't just settle for the first quote you get. Get quotes from different insurance companies to see who offers the best rate for your situation. Some companies specialize in high-risk insurance and might offer better deals.
Good to know
Building a good driving record takes time. If you can avoid getting into accidents and keep your nose clean, those tickets and accidents will eventually fall off your record and your premiums should come down over time.
How to get high risk car insurance in Canada?
Regular insurance companies might shy away from high-risk drivers, so you'll need to look elsewhere for coverage.
Here are your options:
- High-risk specialists: There are insurance companies in Canada that specialize in insuring high-risk drivers. They understand that not everyone has a perfect driving record and can help you find a policy that fits your needs.
- Insurance brokers: These are insurance pros who work with a bunch of different companies, including high-risk specialists. They can shop around for you and try to find the best deal on high-risk insurance.
- The Facility Association (FA): This is kind of a last resort, but if no other company will insure you, the FA can provide basic coverage. However, FA insurance is typically the most expensive option, so it's best to explore other avenues first.
Expert advice
When shopping for high-risk insurance, be honest and upfront about your driving record. This will help you get the most accurate quotes and avoid any coverage issues down the road.
What are the best high risk car insurance companies?
The best company for you will depend on your circumstances, driving record and budget. Not to mention that the options will vary based on your location.
Here are some high-risk auto insurance companies to consider in Ontario:
- YouSet
- Economical Insurance
- Onlia Car Insurance
- Intact Insurance
- Aviva Canada
- CAA Insurance
- TD Insurance
The coverage may change based on your unique needs and budget. It's therefore recommended to get personalized coverage and quotes from providers. You can do it right here using our HelloSafe tool below. Explore the best high risk car insurance quotes in Canada and get free quotes now.
Compare Canada's best car insurance plans
How can you stop being labelled as a high-risk driver?
Being labelled high-risk isn't forever.
Here are some steps that can help you improve your driving record and eventually be seen as a lower risk by insurance companies:
- Be a safe driver: This is the golden rule. Avoid distractions, follow the speed limit and obey all traffic laws.
- Time is your friend: The good news is that traffic violations and accidents eventually fall off your driving record, typically after three to six years depending on the severity. So, keeping a clean record over time will help.
Additionally, make sure you pay your insurance premiums on time. A history of late payments can also make you seem like a risky driver.
