Your driving habits and adherence to Ontario’s traffic laws do more than just keep you and others safe; they also significantly influence how much you pay for auto insurance. Whether it’s a speeding ticket, distracted driving, or an at-fault accident, your record directly affects your insurance premiums. Understanding this connection can help you make informed decisions and potentially save you money.

This blog explores how specific driving laws impact your auto insurance in Ontario. We’ll cover everything from speeding and distracted driving to impaired driving and traffic violations. By the end, you’ll know how to maintain a clean driving record and reduce your insurance costs. Understand how local laws affect your premiums with insights from Acumen Insurance – Ontario auto insurance experts.

Speeding and Stunt Driving

Speeding is one of the most common driving offenses in Ontario, but it’s also one of the costliest when it comes to auto insurance. A single speeding ticket, depending on how far over the speed limit you were driving, can result in an insurance rate increase of 10 to 25 percent. Repeat offenses? Prepare for even steeper penalties.

Stunt driving, on the other hand, is treated far more harshly under Ontario’s laws. Stunt driving includes excessive speeding (50 km/h over the limit), racing, or other forms of high-risk driving behavior. A conviction could not only result in an immediate roadside license suspension and vehicle impoundment but will be reported to your insurance provider. This will trigger skyrocketing premiums or even result in policy denial or cancellation.

Key takeaway: Obey posted speed limits and avoid risky driving behaviors at all costs. The long-term financial repercussions far outweigh any temporary thrill.

Distracted Driving

Distracted driving has become one of the leading causes of road accidents in Ontario, prompting strict laws to curb the practice. Using a handheld device while driving—even just holding your phone—is a clear example of distracted driving and comes with hefty fines, demerit points, and license suspensions for repeat offenders.

But the monetary cost doesn’t stop at the ticket itself. Insurance providers take distracted driving violations seriously, often categorizing them as a major infraction. A distracted driving conviction can cause your premiums to increase by 15 to 25 percent, and in some cases, your insurance provider may consider you a high-risk driver.

Key takeaway: Keep your focus on the road. Use hands-free devices and eliminate any unnecessary distractions to avoid fines, penalties, and increased insurance costs.

Impaired Driving

Driving under the influence of alcohol or drugs is one of the most severe violations in Ontario traffic law. If you’re convicted of DUI (Driving Under the Influence) or DWI (Driving While Impaired), the legal consequences are severe, including license suspension, hefty fines, and even possible jail time for repeat offenses.

From an auto insurance perspective, a DUI conviction brands you as a high-risk driver, and insurance companies will significantly increase your premiums. On average, expect your rates to double or even triple. Some insurance providers may cancel your policy altogether, forcing you to seek coverage from high-risk insurance providers, which come with even higher rates.

Key takeaway: Never get behind the wheel after consuming alcohol or drugs. The financial, legal, and personal costs are simply too high.

Traffic Violations and Accidents

Your driving record includes a history of traffic violations, such as running a red light, improper lane changes, or failing to stop at a stop sign. These infractions not only result in fines and demerit points but also flag you as a riskier driver to insurance providers. The more violations you accumulate, the higher your premiums will climb.

Accidents have an even greater impact, especially if you’re deemed at fault. An at-fault accident can increase your insurance rates by as much as 20 to 40 percent. The extent of the premium hike will depend on the severity of the accident, claim costs, and your previous driving record.

Key takeaway: Follow traffic rules diligently and always prioritize safe driving to avoid unnecessary costs.

Demerit Points System

Ontario’s demerit points system is designed to monitor and discipline drivers who repeatedly break traffic laws. Different violations add varying numbers of demerit points to your record (e.g., three points for driving with a handheld device, six points for stunt driving). Accumulating too many demerit points can lead to license suspension and inform your insurance provider that you pose a risk on the road.

Insurance companies don’t directly use demerit points to calculate premiums, but your driving record, which includes offenses tied to demerit points, does play a significant role. For example, if you accumulate enough points to result in a license suspension, you can expect your insurance provider to impose higher premiums as soon as your policy renews.

Key takeaway: Keep track of your demerit points and avoid accumulating penalties that could result in higher insurance costs.

Stay Safe and Save on Insurance

Keeping a clean driving record is the most effective way to maintain affordable auto insurance rates in Ontario. Here are a few tips to help you stay on the right track:

• Always obey traffic laws, including speed limits, stop signs, and signals.
• Avoid distractions while driving and use hands-free technology.
• Never drive under the influence of alcohol or drugs.
• Regularly review your driving record for accuracy and track any demerit points.
• Take defensive driving courses, which some insurance providers recognize as a reason for premium discounts.

Understanding how Ontario’s driving laws impact your auto insurance rates can save you hundreds, if not thousands, of dollars each year. Consistently practicing safe, lawful driving keeps you and others safe while ensuring your premiums stay as low as possible.