Insurance Implications from Speeding
Once a speeding ticket goes on the driving record, the ticket can affect your insurance for up to three (3) years.
Speeding Tickets Affect Insurance
The caveat to this is, the ticket will only affect the insurance:
- if the ticket goes on the driving record, and
- when the ticket goes on the driving record
- not before
Insurance companies only find out about a speeding ticket after the driver either pays the ticket or are convicted at court. Where dispute the ticket the insurance doesn’t learn of the conviction until after the case is finished.
The courts nor the police phone the insurance companies to tell them about speeding drivers.
Your insurance only learns of a conviction by either applying for a copy of your drivers record or if you tell them.
Speeding Ticket Convictions
Once the driver is convicted of speeding, the court sends a notice to the Ministry of Transportation.
The Ministry of Transportation then adds the speeding conviction to the 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 they 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. The problem is drivers don’t know what the insurance company is going to do, and if asked, there is a chance they will increase it due to the inquiry.
Drivers need to keep their driving records clear.
When Does the Ticket go to the Insurance?
Speeding tickets do not go on the driving record until after a conviction or the driver pays the ticket.
Speeding ticket convictions are only kept on driving abstracts 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.
Delay the Speeding Ticket From Your Insurance
Avoid and delay the speeding ticket from going on the driving record by requesting a trial date.
- Traffic tickets are not applied to the drivers record until the ticket is paid or the driver is convicted in court.
- Demerit points do no go on the drivers record until after the ticket is paid or the driver is convicted in court
While the ticket is waiting for a court date the ticket is not on the driving record nor is the insurance company made aware that there is a pending speeding ticket.
Subsequently drivers can delay the ticket from appearing on the driving record to save on insurance.
Should the insurance renew while the ticket is in limbo, the insurance is unaware of the violation and does not penalize the drivers insurance rates.
The driver does this by requesting a trial date hoping that the court date is past the insurance renewal date.
the ticket going on their driving record to avoid insurance increases, by requesting a court date and taking the speeding ticket to trial.
Delaying a speeding ticket from going on the driving record can save insurance.
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.
The police officer does not know what or how your insurance company is going to deal with a speeding ticket on your driving record. The officer receives no training or information about traffic tickets and insurance.
When the officer says the ticket isn’t going to affect your insurance rates, it’s just their “opinion” and not actual fact. Any conviction on a driving record can affect insurance rates.
The insurance company “may not” penalize the driver for a first conviction but any subsequent conviction will start to affect the insurance.
As all traffic ticket convictions stay on a driving record for three (3) years drivers should 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 charge insurance rates as they decide and see fit.
Auto insurance rates are based upon looking at each driver or policy holder to decide what is the risk of that person being in an accident or making a claim. The insurance wants to avoid paying 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.