Speeding tickets can affect your insurance rates. The caveat to this is, the speeding ticket will only affect the insurance if the insurance company finds out about the ticket.
Insurance companies only find out about a speeding ticket after the driver either pays the ticket or are convicted at court.
The courts or the police do not phone the insurance company to tell them that the driver was caught speeding, or convicted of speeding in court.
Once the driver is convicted of speeding the court sends a notice to the Ministry of Transportation. The Ministry of Transportation then adds the conviction to the driving abstract/record.
Driving abstracts are available to anyone who has the drivers licence number for a fee payable to the Ministry of Transportation.
Therefore the way the insurance company will finds out about the ticket is;
- The insurance company contacts the Ministry of Transportation and checks the drivers abstract, or
- The driver calls and tells the insurance company that you received a ticket
Each insurance company is a private company with their own set of rules and standards.
Some insurance companies will not increase insurance rates for one ticket and others will, problem is drivers don’t know what the insurance company is going to do, and if you ask there is a chance they will increase it from your say so.
Drivers need to keep their driving records clear.
Delaying the Speeding Ticket from Going on Insurance
As any speeding ticket does not go on the driving record until after a conviction or it’s paid, drivers should always fight the ticket and delay the ticket from going on their driving record.
Speeding ticket convictions are only kept for 3 years, so by fighting or delaying the ticket going on your driving record you may be able to keep the conviction away from your insurance company.
- Driver receives a speeding ticket in February and the insurance renews in March.
- By fighting the speeding ticket and appearing in court the conviction does not go on the driving record until after the court date.
- If the court date is in April the insurance company would not learn about the conviction until the renewal in the following year.
- Driver save one of three years of the insurance learning of the conviction, and possible insurance increases.
Delaying the Ticket from Your Insurance
Drivers need to do everything to avoid the ticket going on their driving record to avoid insurance increases, by requesting a court date and taking the speeding ticket to trial.
If the driver cannot get rid of the ticket on a trial date, then you want to delay it from appearing on your driving record and insurance as long as possible.
The Police Officer said it Won’t Affect My Insurance
If the police officer told you that the speeding ticket will not affect your insurance, do not believe them.
You always want to do everything possible to keep your driving record as clean as possible, and if you cannot keep the ticket off your record then you want to delay it from appearing as long as possible.
Each insurance company is different and a police officer does not know how your insurance company is going to perceive a speeding ticket on your driving record.
How Insurance Companies Base Your Insurance Rate
Insurance companies in Ontario are private for profit businesses. As such they are free to base insurance rates as they decide and see fit.
The insurance company looks at each driver or policy holder to decide what is the risk of that person being in an accident or making a claim to which the insurance company may have to pay out money to repair a car or pay for a personal injury claim.
If a driver has speeding tickets or traffic tickets on their drivers abstract then the insurance company believes the risk to insure the driver is higher and will increase the insurance rates.