Skip to main content
Author photo

Written by Kayla Jane Barrie Updated on Mar 20, 2025 3 mins read

Blog Demerit Points and Insurance

Is it true demerit points will affect your insurance?

Have you collected Ontario demerit points?

You may wonder if demerit points increase your rate when it’s time to renew your insurance. This blog clarifies the truth behind how much demerits can impact your policy. You may be surprised at the answer!

What you need to know about demerit points and insurance:

  • Like many violations, demerits will stay on your record for two years.
  • The secret to keeping your premiums low? Drive safe, and don’t accumulate points.
  • Demerit points do not directly impact your rate but play a significant role.

Do demerit points affect insurance?

Demerit points do not directly affect your auto insurance in Ontario. It's being convicted of traffic violations that can impact your costs. While a single minor driving conviction generally has minimal impact, multiple or major convictions will increase costs.

The system was implemented to track offences for driving suspensions. Remember that you can lose your licence if you collect enough, resulting in a significant premium increase.

Whether you receive two, three, or nine demerit points will not increase your car insurance quote, unless they come with a conviction or you are found guilty of a severe driving offence such as stunt driving.

Shop around to get affordable premiums

Have you seen an increase in your rates from a ticket that came with demerit points? It might be time to look for a new provider. Start comparing your options with us. It's free, and only takes a few minutes!

Car Insuranse Promo

Remember, insurance companies have varying rules regarding this. While some insurers may opt to increase the insurance rates for a person convicted of criminal driving charges, others may refuse to insure you.

Demerit points and insurance example:

In Ontario, drivers receive demerit points for traffic violations. Consider this example scenario where a driver, John fully insured with Toronto auto insurance, receives demerit points for a traffic violation.

John is driving along a busy street in Toronto and is hurrying to work because he overslept that morning. As he approaches a traffic light, he notices that it turns yellow. Instead of slowing down to stop safely, he speeds up to make it through the intersection before the light turns red.

Unfortunately, a police officer nearby observes John's actions and pulls him over. The officer explains to John that he violated traffic laws by speeding up to beat the red light, which is dangerous and against the rules. The officer issues John a ticket for running a red light, which carries a fine and demerit points.

In Ontario, running a red light typically results in a fine and adding three demerit points to the driver's record. In John's case, his driving record now shows that he has accumulated three demerit points because of his violation.

Accumulating demerit points can have consequences for drivers, such as increased premiums. If drivers accumulate enough points over a certain period, they may face additional penalties such as suspension or the requirement to attend a driver education program.

How long do demerit points affect the insurance rates?

In Canada, any traffic violation conviction remains on your driving records for three years from the ticket date or the date convicted in court. Traffic violations can affect your insurance rates up to three years from the policy's start date.

New traffic violations can affect your rates during policy renewal. You can also learn more by reading about how driving history affects insurance.

Safe driving is the first step to no demerit points

If you have received a traffic ticket, been convicted, and have accumulated some demerit points on your driving record, your car insurance premiums may have increased.

You may not qualify for standard insurance rates if you rack up too many demerit points. To drive legally, you may need Ontario high-risk insurance. If this is the case, it may be helpful for you to compare your options and better understand the various factors that can impact your premiums.

Share

Kayla Jane Barrie

Digital Content Writer

Kayla-Jane has been a content writer with ThinkInsure since 2020. She creates insurance content for auto, home, and commercial. Kayla-Jane has a diploma in Journalism.

Categories Auto
Tags Auto Coverage

Insurance Blog And News

Read our insurance blog to get helpful tips, information and news.

illustration of a car with odometer
2025-06-22

Pay-As-You-Go Insurance In Canada

Learn about pay-as-you-go insurance in Canada. Find out the costs, how it works, who it’s for and if it is available in your area.

damaged black and grey cars parked beside each other
2025-06-18

Here's How An At-fault Accident Can Impact Your Insurance

Did you get into an at-fault car accident in Ontario? Learn about at-fault accidents, how insurance companies determine fault, and how it can impact your automobile coverage.

vehicles lined up for sale at a car dealership
2025-06-17

Cheapest Cars To Insure In Ontario

What are the cheapest cars to insure in Ontario? Find out what new and used cars, SUVs, & trucks are the cheapest to insure so you can save.

Asian woman looking at damage from a car accident on a grey car
2025-06-13

Types Of At-fault Accidents In Ontario

What factors determine who is at-fault in an accident in Ontario? Get your questions about what defines at-fault and how to prevent being at-fault for an accident.