Demerit Points and the Impact on Insurance Rates

In Ontario, demerit points are a penalty on your licence and are used to score your driving record. Below are some important facts about demerit points and how they impact insurance rates.

While it may seem odd, drivers don’t “lose” points on their driving record – you start with zero points and gain them when you’re convicted of breaking certain Ontario traffic laws.

If you’re interested, just click here to find a complete list of the demerit points that accompany a conviction for various driving offences in Ontario.

Facts About Demerit Points and Insurance Rates in Ontario

They Encourage Safe Driving Habits

Demerit points are a penalty on your licence due to a driving conviction. They are a way of holding Ontario drivers responsible for their driving actions to encourage safer driving habits and more awareness on the roads.

They Aren’t Permanent

Demerit points have the impact of deciding whether your licence will be revoked or not, but they are only kept on your driving record for a duration of two years.

The “Points” Don’t Directly Affect Your Rates

Insurance companies don’t look at the number of demerit points you have when calculating your premium. But this doesn’t mean careless driving is acceptable.

Insurance companies will take into consideration the number of tickets you have received as well as the severity of each ticket. The more tickets you have, the more likely your insurance rates will increase. Too many tickets can result in a non-renewal from your insurance company as it demonstrates you are a high-risk driver – a classification you DO NOT want on your record.

Loss of Licence Can Be a Result

If you exceed 15 demerit points, your Ontario licence will be suspended for 30 days. If you do not surrender your licence, you can lose your licence for up to two years. Demerit points negatively affect your driving record. Ensure you are familiar with the laws in Ontario and practice safe driving habits to keep your record clean and to prevent insurance rates from increasing.

Source: Youngs Insurance