How expensive is high-risk auto insurance?

Auto insurance is expensive enough, but what happens if you buy a certain type of car or make a few mistakes behind the wheel and get labelled a high-risk driver? At that point, you’ll need something called high-risk auto insurance in Ontario, and as you can guess, this comes with a higher monthly rate as well.

If you’ve been in a few accidents, have received a few speeding tickets, or have been labelled a high-risk driver for some other reason, here are some things to know.

What is high-risk auto insurance and who needs it?

High-risk insurance is a type of car insurance for drivers who are deemed statistically likely to be involved in an accident. There are lots of things you can do to get yourself labelled a high-risk driver by insurance companies, and while some are related to your driving record and habits, others have to do with the type of vehicle you drive, your claims, and insurance history.

Here are some examples:

  1. Multiple claims on your record.
  2. Recurring traffic violations and speeding tickets.
  3. A lapse in insurance coverage.
  4. Lack of insurance history.
  5. Numerous at-fault accidents.
  6. Owning an expensive, exotic, or otherwise high-risk car.
  7. Impaired driving and other criminal driving charges.
  8. You’ve had an insurance policy cancelled.

Examining the cost of high-risk auto insurance

The more risk an insurer takes on, the more compensation they’ll need in return. A high-risk driver, therefore, can expect to pay higher insurance rates for car insurance than another driver.

Whereas the average Ontarian pays between $1,500 and $1,900 a year for car insurance, high-risk drivers can expect to pay anywhere between 25% and 250% more, so annual rates could range from $1,875 to $4,750.

However, it’s important to mention that car insurance rates are based on many factors, and you could end up paying substantially more as a high-risk driver, especially if you’re already in a high-risk category (such as being a male driver under the age of 25).

Tips for getting the best rates on high-risk auto policies

Even if you’re paying for high-risk auto insurance in Ontario, there are still steps you can take to possibly lower your insurance rate, and one of the most effective is increasing your deductible. The higher your deductible, the less an insurer will have to pay in case of a claim, so this can drastically reduce your insurance rates.

You can also reduce your coverage in certain situations, so you only have the mandatory minimum (third party liability), but be aware that you could end up paying quite a bit out-of-pocket if you get into an accident and have to pay for damages or injuries. It’s also important to note that reducing coverage won’t be possible if you lease your vehicle, or have a loan on your car. The organizations handling the lease or financed vehicles will mandate full coverage.

High-risk insurance is for drivers who have been in a couple of at-fault accidents, have had their insurance coverage cancelled, drive an expensive car, or are otherwise deemed risky by the insurance companies.

High-risk, in other words, means you could end up costing the insurance company more, so you’ll have to pay higher rates than another driver might, but there are still things you can do to potentially lower your rates.

Auto insurance is expensive enough, but what happens if you buy a certain type of car or make a few mistakes behind the wheel and get labelled a high-risk driver? At that point, you’ll need something called high-risk auto insurance in Ontario, and as you can guess, this comes with a higher monthly rate as well.

If you’ve been in a few accidents, have received a few speeding tickets, or have been labelled a high-risk driver for some other reason, here are some things to know.

What is high-risk auto insurance and who needs it?

High-risk insurance is a type of car insurance for drivers who are deemed statistically likely to be involved in an accident.

There are lots of things you can do to get yourself labelled a high-risk driver by insurance companies, and while some are related to your driving record and habits, others have to do with the type of vehicle you drive, your claims, and insurance history.

Here are some examples:

  1. Multiple claims on your record.
  2. Recurring traffic violations and speeding tickets.
  3. A lapse in insurance coverage.
  4. Lack of insurance history.
  5. Numerous at-fault accidents.
  6. Owning an expensive, exotic, or otherwise high-risk car.
  7. Impaired driving and other criminal driving charges.
  8. You’ve had an insurance policy cancelled.

Examining the cost of high-risk auto insurance

The more risk an insurer takes on, the more compensation they’ll need in return. A high-risk driver, therefore, can expect to pay higher insurance rates for car insurance than another driver.

Whereas the average Ontarian pays between $1,500 and $1,900 a year for car insurance, high-risk drivers can expect to pay anywhere between 25% and 250% more, so annual rates could range from $1,875 to $4,750.

However, it’s important to mention that car insurance rates are based on many factors, and you could end up paying substantially more as a high-risk driver, especially if you’re already in a high-risk category (such as being a male driver under the age of 25).

Tips for getting the best rates on high-risk auto policies

Even if you’re paying for high-risk auto insurance in Ontario, there are still steps you can take to possibly lower your insurance rate, and one of the most effective is increasing your deductible. The higher your deductible, the less an insurer will have to pay in case of a claim, so this can drastically reduce your insurance rates.

You can also reduce your coverage in certain situations, so you only have the mandatory minimum (third party liability), but be aware that you could end up paying quite a bit out-of-pocket if you get into an accident and have to pay for damages or injuries. It’s also important to note that reducing coverage won’t be possible if you lease your vehicle, or have a loan on your car. The organizations handling the lease or financed vehicles will mandate full coverage.

High-risk insurance is for drivers who have been in a couple of at-fault accidents, have had their insurance coverage cancelled, drive an expensive car, or are otherwise deemed risky by the insurance companies.

High-risk, in other words, means you could end up costing the insurance company more, so you’ll have to pay higher rates than another driver might, but there are still things you can do to potentially lower your rates.

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