You’ve purchased a vehicle, you need to insure it,  but your record may be less than stellar. What are your options?

Ontario law requires that all motorists have auto insurance.

Fines for vehicle owners, lessees, and drivers who do not carry valid auto insurance can range from $5,000 to $50,000.

If you are found driving without valid auto insurance, you can have your driver’s licence suspended and your vehicle impounded.

If you are convicted of driving without valid auto insurance, your insurance company may consider you a “high-risk” driver and charge you higher premiums or refuse to sell you insurance altogether. If you are injured in an accident while driving or occupying an uninsured vehicle: you may not be entitled to receive income replacement and/or non-earner benefits; and you may not be allowed to sue the at-fault driver for compensation as a result of injuries received in the accident.

More importantly, if you are found to be at fault for an accident causing injury or death to another person, you may be held personally responsible for his/her medical costs and other losses.



What Qualifies You as a High-Risk Driver?

Typically, the term “high risk driver” applies to any driver who has tickets or accidents on record,  as these have been found to add up to a much higher likelihood of a future claim against your policy. How your driver’s record  works against you tends to vary from insurance company to company, and it is definitely recommended to shop around. Most standard insurance companies will instead underwrite such high risk drivers under a special insurance program as opposed to the regular insurance program.

With this categorization, your policy may not auto-renew, which would require the driver at the end of each policy term to request another policy term extension of coverage. Likely, if one company has not renewed you and have placed the categorization of high risk to your insurance record, it may prove difficult to find other insurance companies who are able to look beyond this and still offer coverage.

Demerits against your record that may qualify you as a high risk driver can include multiple accidents where you’ve been found at fault, DUIs, multiple speeding tickets, or any combination of any of these.

That’s where 2nd Chance Insurance can help- there are insurance companies out there who will offer policies to high risk drivers, and allow them to help rebuild their records as safe drivers. Speak to a professional at 2nd Chance today to get a competitive quote, and start rebuilding your status today!