While everyone strives to follow the rules of the road, even the most experienced drivers can find themselves facing a traffic stop. When you apply for auto insurance or renew your existing policy, your insurance company will review your driving record to evaluate your risk level. Any infractions on your driving record can increase your perceived risk, which often results in a higher insurance premium. Let’s take a closer look at the most common infractions and how they can affect your auto insurance costs.
 

1. Speeding. Given our busy schedules, it's easy to see why speeding is one of the main causes of traffic stops in Canada. Unfortunately, speeding is also a significant factor in many collisions and should be taken seriously. The impact of a speeding ticket on your insurance premium varies based on how much you exceeded the speed limit and your history of infractions. A minor speeding ticket might lead to a slight increase in your premium, or even no increase at all, especially if you're a safe driver with a clean record. However, a major speeding ticket, such as one for stunt driving, or multiple tickets, will typically result in a much larger increase in your premium.
2. Running a red light. Running a red light is very dangerous and can easily lead to collisions with other vehicles, cyclists, or pedestrians. Due to the risk, running a red light comes with a hefty fine and adds three demerit points to your driving record.¹ Traffic tickets, including red light tickets, stay on your driving record for three years from the date of conviction, and will likely cause your insurance premium to increase.
3. Parking. Parking tickets are issued by the municipality where the violation took place and aren’t reported to the Ministry of Transportation. Since parking tickets are considered vehicle fines, not moving violations, they generally don’t impact your driving record or insurance premium. However, if you fail to pay your parking tickets, you may face difficulties when trying to renew your licence plate.² Driving with an expired licence plate is illegal and can lead to a hefty fine, which may also increase your insurance premium. To avoid extra penalties, make sure to pay your parking ticket on time.
4. Hit-and-run. If you’re involved in a collision or hit a parked car, it’s essential to remain at the scene and take the necessary steps to report any injuries or damage to the authorities. In Ontario, you’re legally required to call the police if the damage appears to be more than $5,000.³ Failing to remain at the scene of a collision, also known as a hit-and-run, is a serious offence with significant legal and financial consequences. Penalties under the Highway Traffic Act can include hefty fines, seven demerit points, license suspension, and even jail time.¹ A hit-and-run conviction is viewed as a high-risk offence by insurance companies, leading to a substantial increase in your insurance premium. Your insurer may also decide not to renew your policy or choose to cancel it altogether.

Remember, being a safe and responsible driver pays off! If you have a clean driving record with no traffic violations in the past three years, you may be eligible for an auto insurance discount.

If you're a current OTIP policyholder, contact us at 1-833-494-0089 to review your existing auto insurance policy. If you’re not insured with OTIP and are shopping for auto insurance, call us at 1-833-615-9326 to get a quote and receive a $20 gift card of your choice!
 

1. Government of Ontario – Understanding demerit points
2. Government of Ontario – Paying defaulted fines and driver’s licence reinstatement
3. Financial Services Regulatory Authority of Ontario – What to do after an accident