Parking Tickets And Insurance

Why don’t parking tickets increase your car insurance premiums?

Parking tickets don't affect your car insurance because they are non-moving violations.

This means they are related to how your car is parked or registered, not how you drive it. They don't appear on your driving record or get you demerit points. There are, however, some key indirect ways it can impact your finances.

Indirect ways parking tickets can affect your finances (and insurance)

While missed or late ticket payments might not directly affect your car insurance in Ontario, neglected fines can hinder your ability to renew your driver’s license upon its expiration.

In Ontario, if you have outstanding tickets, you will not be able to renew your licence or registration - you will have to pay for your tickets first.

In addition, if you receive parking tickets in certain jurisdictions, your vehicle may be towed and impounded until all fines, penalties, towing, and impoundment expenses are paid.

Are there any demerit points for parking tickets?

No. Parking tickets will not result in demerit points on your Ontario driving record because they are not a moving violation. Demerit points are reserved for moving violations related to the operation of a vehicle.

Parking tickets vs. moving violations: understanding the difference

A moving violation occurs while the vehicle is in operation. This could result in demerit points, and they are reported on the driver’s record. Insurers can access your driver abstract and use these convictions to assess risk and adjust premiums accordingly.

A non-moving parking ticket is issued when the vehicle is stationary at the time of the offence. It carries no demerit points and is not recorded in a driver's record, which is why parking tickets do not affect your car insurance rates.

Parking tickets vs. moving violations

Here is a look at the different types of non-moving and moving violations in Ontario:

Most common types of parking violations in Ontario

Parking tickets are financial penalties issued by municipal authorities, and while they don't affect your driving record, they can still be surprisingly expensive, especially for safety-related infractions. Fines vary significantly depending on the municipality and the severity of the offence.

Here are some of the most frequent reasons drivers receive parking tickets in Ontario:

• Accessible parking violations: This is often the most costly offence. Parking in a designated disabled/accessible spot without a valid permit can result in a fine of $300 to $450 across many Ontario municipalities.
• Fire safety: Blocking a fire lane or parking too close to a fire hydrant (typically within 3 metres or 9 feet).
• Restricted zones: Parking in a designated "No Parking," "No Stopping," or "No Standing" zone.
• Time limit restrictions: Parking at an expired meter or exceeding the posted time limit in a designated area.
• Obstructing access: Blocking driveways, crosswalks, or public sidewalks.
• Rush hour and snow routes: Parking during restricted periods, such as designated rush hour routes or municipal snow removal times.

Be aware that failing to pay these fines by the due date will result in the accumulation of escalating late fees and penalties.

What happens when you don't pay a parking ticket?

While a parking ticket may not be reported to your insurance company, ignoring the fine is not recommended and can lead to severe financial and legal consequences that escalate quickly, such as increased fines, inability to renew your licence, and a credit score impact, which might increase your rates.

Loss of driving and vehicle privileges

Under Ontario law, any outstanding parking fines levied against your vehicle will result in the blocking of your ability to renew your driver's licence or your vehicle's licence plate registration. The Ministry of Transportation (MTO) is notified of these unpaid fines. You will be unable to legally drive or renew your vehicle registration until the full amount, including all accumulated fees and penalties, is paid in full.

Escalating fines and penalties

If you miss the initial payment deadline, late fees will start to accumulate. For example, a minor $30 fine in some municipalities can quickly double or triple in a few months due to successive administrative penalties added after 30, 60, and 90 days.

Vehicle towing and impoundment

If a ticket remains unpaid for an extended period, the municipality has the authority to issue an order for the towing and impoundment of the vehicle if it is on public property. Releasing the vehicle requires paying not only the original fine and all late fees, but also towing and impoundment storage fees.

Collections and credit score impact

If the debt remains unsettled for an extended period, the municipality may eventually turn the outstanding amount over to a third-party collections agency.

Once a fine is sent to collections, it will be reported to Canadian credit bureaus. A collection action on your credit history can severely damage your credit score. Since some Canadian insurers use credit history as part of their assessment for non-driving risk and premium eligibility, a low credit score resulting from unpaid fines could indirectly lead to higher insurance rates in the future.

Cheaper insurance is only a click away!

Our brokers can help you compare premiums from Canada's top insurers. Find customized coverage at an affordable rate.

Compare now

Keep your driving expenses low by avoiding parking tickets

Although receiving a parking ticket can be frustrating, it should not be ignored. It is best to pay the ticket immediately to avoid any further inconvenience. Fortunately, parking tickets do not typically affect your insurance rates. However, how you handle the tickets can affect you in other ways.