Demerit Points and Insurance

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.

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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.