Mackay Insurance Blog
How to Find Affordable High Risk Auto Insurance in Ontario
Let’s be honest...purchasing auto insurance is no fun. And purchasing high risk auto insurance can be downright scary.
If you thought regular auto insurance was expensive, wait until you start gathering quotes for high risk auto insurance!
But there are ways to keep high risk insurance premium payments affordable. You may have to do a little more research and have a little more patience. But it can be done!
Read on to learn how to find affordable insurance in Ontario.
Common Reasons Drivers Get Classified As High Risk for Auto Insurance
Yes, it is true that unsafe driving can get you recategorized as a high risk driver.
But you can be a safe and careful driver and still end up being classified as high risk for auto insurance purposes.
These are the most common reasons your insurer may reclassify you as a non-standard or high risk driver for insurance purposes.
- You got too many tickets in too short a time period.
- You were caught driving under the influence (DUI).
- You have been cited as being at fault for one or more serious auto accidents.
- You cancelled your policy multiple times.
- You let your auto insurance policy lapse.
- You failed to pay your policy premiums on time.
- You were cited for careless driving or stunt driving.
Why are the reasons for being considered a high risk driver so varied? The reason boils down to the word "risk."
Auto insurers don't want to lose money. And they lose money in two primary ways.
The first is when drivers don't pay their premiums. The second is when drivers exhibit poor driving habits that could lead to expensive accident-related claim payouts.
Insurers use complex algorithms to rank you on the spectrum from low risk to high risk. But in each of the reasons cited above, it doesn't require an algorithm to figure out if you are a higher risk client to insure.
If you have any of the red flags listed above, or similar others, your insurer may simply refuse to insure you altogether. Or your insurer may only offer you a non-standard or high risk auto insurance policy.
How Expensive Is High Risk Auto Insurance in Ontario?
For general purposes, you can take your current (or recent past) auto insurance premium payment and double or triple that. This is the range you will typically pay to get insurance once you have been classified as a high risk driver.
I've Never Been Insured, But I'm Being Told I'm High Risk! Why?
Auto insurers rely greatly on historical data to build that risk-calculating algorithm we mentioned earlier.
But what if you are a new driver? What if you haven't driven for many years and have no insurance history to speak of?
These are two instances where you may also find yourself red-flagged as a high risk driver. This isn't because you are more likely to cause accidents or claims payouts.
It is because there is not enough data to tell how you are likely to drive and how expensive you are likely to be to insure.
Once you have built up a solid driver history, which can take up to 36 months, your rates will typically adjust downwards as long as you don't have any claims on your record.
Tips to Find Affordable Insurance For High Risk Drivers
Finding high risk auto insurance that is also affordable is a matter of adjusting your expectations in a realistic direction.
For those first two to three years, there is no getting around it - you will have to budget more for auto insurance premiums.
But here are some high-value negotiating tips that can help you to control the costs of staying insured as a high-risk driver.
1. Bundle your auto insurance together with your other insurance policies.
Even high risk drivers can get some valuable discounts of up to 10 percent by bundling multiple insurance policies together with a single insurer.
2. Pay your policy in full annually.
If you can't pay your policy in full up front, then at least pay early each month. This knocks one potential risk concern (non-payment) off your insurer's list.
3. Keep your driver record spotless.
Even a single ticket could add up to three years to the time period you are considered to be high risk for insurance purposes.
4. Enrol in driver training and defensive driving.
Most auto insurers will offer up to a 10 percent discount on annual premiums for drivers who take defensive driving for non-ticket reasons.
Re-taking a certified driver training course may also generate the option for a premium discount.
5. Choose your vehicle with safety in mind.
Avoid driving a sports car or luxury vehicle which could cause your claims payouts to be even higher.
6. Ask for a higher deductible.
Deductibles and premiums tend to have an inverse relationship. By increasing your insurance deductible, you may be able to lower your high risk auto insurance premiums.
7. Ask about low-mileage auto insurance.
If you only drive during certain hours, you may be able to pay lower rates.
8. Reach out to an insurance broker for help.
Your Mackay insurance broker in Belleville, Ontario, has access to a wide range of auto insurers and can negotiate on your behalf to get you the most favourable high risk auto insurance rate.
Your Mackay broker can also help you identify other opportunities to earn premium policy discounts that insurers may not tell you about.
Mackay Is Your Napanee and Belleville Auto Insurance Expert!
Regardless of the reasons you have been classified as a high risk driver, Mackay Insurance can help you find the best car insurance to protect you and your vehicle.
Looking for a quick auto insurance quote? Reach out to your friendly and knowledgeable Mackay Insurance brokers to request a FREE QUOTE on affordable high risk auto insurance in Ontario, Canada.