High Risk Car Insurance

Get reliable car insurance coverage tailored to you with Brokerlink.

All Canadian drivers are legally required to have car insurance, but some individuals may find it difficult to obtain a traditional auto insurance policy. Those with multiple accidents and numerous traffic violations often end up in a "non-standard" insurance market.

At BrokerLink, we provide a customer care solution to help you. We have access to specific insurance companies that offer coverage until your insurance history improves, allowing you to transition to a standard insurance provider. Our brokers will monitor your auto policy and look for opportunities for improvement. Once your situation allows, we will assist you in returning to the standard market. Since we partner with all non-standard insurance companies, you won’t need to search elsewhere. Our experts are here to present you with options and find the best solution for your needs.

BrokerLink compares rates from a wide range of providers, ensuring you get the best deals available.

What is car insurance? Standard insurance & high risk insurance

You can think of car insurance as a type of legal agreement you enter into with an insurance company. You make monthly payments, and in exchange, your insurance company agrees to provide financial protection if you're in an accident to pay for medical expenses, vehicle repairs, vehicle replacements, and more.

Standard insurance

Standard insurance is designed for the average driver with a clean driving record. They may have a traffic ticket on their record, or perhaps an insurance claim for minor damage. But beyond that, their record is pretty clean. This, in addition to other factors used by insurance providers to calculate premiums, like age, location, and vehicle type, puts them into a "low-risk" category.

High-risk auto insurance

High-risk car insurance, sometimes referred to as facility insurance, is a type of insurance coverage reserved for only high-risk drivers as a last resort. High-risk auto insurance is what you need if no insurer will allow you to purchase a standard car insurance policy. You may be considered high risk if you have:

Multiple insurance claims: Numerous at-fault accidents resulting in insurance claims on your insurance history can indicate to providers that you are an irresponsible driver who is a higher risk to insure.
Ongoing traffic violations: A poor driving record with numerous traffic convictions, tickets, and fines for being unable to follow the rules of the road.
Not paying your monthly insurance bills: Coverage cancellations due to missed payments over the course of a couple of months, due to financial issues or deliberate non-payments.
Committing fraud: Convictions arising from insurance fraud or misrepresentation.
Driving convictions: Serious driving convictions, including reckless driving or other dangerous driving habits, such as having numerous licence suspensions or multiple speeding tickets, or criminal driving convictions like impaired driving.
Your demographics: Other risk-related characteristics include being a young driver or a senior driver.

One thing to clear up is that having a high-risk label doesn't mean you're uninsurable. High-risk car insurance guarantees that you can still obtain coverage; you'll just need to have a higher premium for a period of time. With the right guidance, you can secure insurance coverage, stay protected behind the wheel, and eventually find your way back to standard, affordable insurance rates.

Why you need high risk car insurance

Even with a poor driving record or other factors that label you a high-risk driver, if you wish to operate a motor vehicle on public roadways in Canada, you are legally required to have valid car insurance. However, because auto insurance is provincially regulated, the types of insurance and coverage minimums will vary. For example, in British Columbia and Ontario, all drivers must have a minimum of $200,000 in liability coverage. But in Nova Scotia, a minimum of $500,000 in liability is needed.

Driving without insurance can result in heavy fines, license suspensions, and vehicle impoundment. But beyond the legal side, car insurance protects your finances. If you cause an accident, you could be responsible for medical bills, legal fees, and costly repairs. Even a single collision can run you tens of thousands of dollars. And without insurance in place, you would have to pay for those costs out of your own pocket.

For those with a high-risk label, maintaining insurance also helps you rebuild your credibility. Consistently carrying insurance and driving safely over time will prove to insurance providers that your habits have improved. This can help you unlock lower premiums in the future through standard channels.

Types of high-risk car insurance

When you purchase high-risk insurance in Canada, some insurance policies will be mandatory, while others are optional add-ons that give you more protection. It's important that you familiarize yourself with your province's auto insurance requirements, so you do not accidentally drive without property protection. Here's a closer look at the most common mandatory and optional high-risk car insurance across Canadian provinces:

Mandatory

Optional

Liability car insurance is mandatory for all drivers, regardless of whether they have a high-risk label or not. Liability auto insurance protects drivers if they cause bodily harm or property damage to a third party while operating a motor vehicle. Should a lawsuit be filed against them for damages, this insurance coverage will cover the cost of repairs, replacements, legal fees, and other associated costs.

The minimum coverage amount for this auto insurance policy can range from $200,000 to $500,000, depending on what province you reside in. However, most drivers opt for higher limits.

Accident benefits coverage will cover the cost of medical bills, rehabilitation expenses, lost wages, and other costs incurred following a car accident, regardless of who is at fault. This policy extends to your passengers and any pedestrians who may be involved.

Uninsured motorist insurance protects you if you're in an accident with an uninsured/underinsured driver or involved in a hit-and-run accident, ensuring you'll be properly compensated for your losses by paying for any vehicle repairs or replacements.

Direct compensation - property damage is mandatory in provinces like New Brunswick, Alberta, Newfoundland and Labrador, and Nova Scotia. This policy ensures that damages to your vehicle and its contents are covered by your own insurance company if you are hit by an at-fault driver.

Collision car coverage will cover the cost of vehicle repairs you may require following an at-fault accident. When filing an insurance claim under this policy, a claims adjuster will ask you to pay a deductible before the remaining costs are covered.

Comprehensive car coverage is another type of optional insurance coverage that those who are labelled high-risk may want to consider. This auto insurance coverage will cover the cost of vehicle repairs you may require following a non-collision event. Common perils covered by this insurance include theft, vandalism, fire, falling objects, high winds, and other severe weather conditions. Again, you'll need to pay a deductible to your insurance provider when filing an insurance claim.

One more type of optional car insurance coverage popular among drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim.

If you're buying a new car, adding this coverage to your policy is worth considering. It ensures you're covered for the full value of your vehicle without factoring in depreciation. That means if your car is stolen or totalled, you'll be reimbursed for the cost of a brand-new vehicle—not just what it's worth after wear and tear.

If you ever get into an accident and your car needs repairs, loss of use coverage has your back. While your car is in the shop, this coverage helps pay for other ways to get around—whether that's hopping on public transit, using ride shares, or renting a car. It can be a real lifesaver, especially if your car ends up being out of commission for days or even weeks.

The minimum coverage amount for this auto insurance policy can range from $200,000 to $500,000, depending on what province you reside in. However, most drivers opt for higher limits.

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Ways to save on your high-risk insurance policy

If you have a high-risk label assigned to you by insurance providers, you will experience higher premiums for coverage, given that you pose a significant risk to insurers compared to the average driver. As we mentioned, if you're a high-risk driver, you can anticipate paying anywhere between $8,000 and $10,000 a year in insurance rates when you renew your car insurance, and most providers offer limited payment options.

That being said, there are ways to lower your insurance rates, even if you are considered high-risk by most insurance companies. To potentially secure a lower insurance rate, here's what you need to do:

Discounts

Defensive driving course discount

Many insurance providers recognize accredited driving courses and may offer you a discount on your rates if you show proof that you've enrolled and completed one of these courses.

Clean driving record discount

Avoid traffic tickets, accidents, and insurance claims to gradually lower your risk level. By maintaining a clean driving record for a couple of years, you'll soon be able to qualify for the clean driving discount. And the longer you go without violations, accidents, and claims, the more you'll save.

Telematics discount

Usage-based insurance programs track your driving habits, including your speed, braking, and the time of day you're travelling. Safe driving behaviour is rewarded with savings on insurance rates, while risky behaviour can lead to higher premiums.

Winter tire discount

According to the Royal Canadian Mounted Police (RCMP), in 2017, approximately 30% of collisions recorded in the National Collision Database occurred on snowy, icy roadways. To reduce your chances of getting in a collision during the winter and to save 5% on your premiums, consider installing winter tires on your car.

Security feature discount

If you own a high-risk vehicle like a luxury model or high-performance sports car with elevated theft rates, you may want to consider installing security features like GPS trackers, engine immobilizers, and dash cams on your car. This can lower your chances of being a victim of vehicle theft and help you qualify for a 5% discount with your provider.

Savings Options

Bundle your policies

High-risk drivers can still save money on their premiums by bundling their high-risk auto insurance with other policies with the same insurance company. Whether it's home insurance, pet coverage, or business insurance, bundling your plans with the same company can help you lower higher premiums.

Shop around

If you're considered high-risk, the best thing you can do is shop around and compare high-risk insurance costs from multiple high-risk insurers. Not all insurance companies will price high-risk insurance the same. So, by shopping around and comparing high-risk car insurance rates, you may be able to secure a lower insurance rate than what you're originally quoted. You can do this on your own or by working with a high-risk insurance broker.

Opt for higher deductible amounts

Higher deductibles can often bring down premiums offered by insurance providers. Remember, a deductible is the amount you pay to your insurance provider when filing an insurance claim for damages or losses. By increasing your deductible, you're essentially taking on more of a financial responsibility, and in doing so, you may be able to lower your premium slightly.

Work with a high-risk insurance broker

Before purchasing high-risk auto insurance from insurance providers, consider working with an insurance broker to find the best options. Insurance brokers work independently from insurance companies, allowing them to shop around and compare high-risk auto insurance coverage options. While there may be fewer high-risk providers available to you, it still doesn't hurt to shop around for the most affordable insurance options.

Pay your premium upfront

Most insurance companies charge a fee if you pay for your high-risk insurance coverage through monthly payments. This is because it costs them money to process each of these payments (administrative and labour costs). To avoid these surcharges, consider paying your your high-risk insurance policy upfront if you can afford to do so.

How insurance premiums are calculated for high-risk driver categories

Similar to how traditional car insurance rates are calculated, non-standard auto insurance premiums are based on several factors. These factors include:

Driving history

Your driving history is one of the most important factors influencing your insurance premiums. Past behaviour that includes speeding tickets, at-fault accidents, license suspensions, DUIs, and other serious offences all weigh heavily against you and will put you in the high-risk category. However, over time, you can lower your rates by maintaining a clean record.

Your insurance record (gaps and cancellations)

If you've ever had your auto insurance cancelled for non-payment or if you've gone without coverage for a period of time, you may be considered high risk. Maintaining continuous coverage is one of the best ways to keep your premiums as low as possible.

Vehicle type

High-performance cars, luxury models, and vehicles with expensive repair parts typically cost more to insure. Other the other hand, old vehicles with safety features and affordable replacement parts can lead to lower insurance costs. Those who need to purchase high-risk auto insurance may opt for a lower-risk vehicle for the time being.

Where you live

Postal code matters. Drivers in larger cities, where accidents and thefts happen more often, typically pay more for coverage compared to those living in more rural areas. For example, Ontario drivers living in Aurora may face lower rates than someone living in downtown Toronto.

Age and gender

Younger drivers, especially males under 25, often pay more due to higher accident rates. Insurance companies look at past accident data, and if you happen to fall into the demographic with higher rates of accidents and violations, you can anticipate paying more. But once you gain experience and prove that you are a safe driver, your rates will become more affordable.

Insurance claims history

The more claims you have on your file, the more of a risk you are to insure. The way insurance companies see things, having multiple at-fault claims on your insurance history means you're more likely to file another claim in the future.

Annual mileage

The more time you spend behind the wheel, the more at risk you are of being in an accident. Cutting down on your mileage by carpooling or taking public transit can help you reduce your rates.

Additional information you should know as a high-risk driver

High-risk insurance differs from regular car insurance in two prominent ways:

1. Purchased through FARM

First, high-risk insurance is purchased through the “facility association residual market” (or “FARM”) instead of the “voluntary regular market” from which regular policies are bought. In the voluntary market, insurance companies voluntarily compete to secure your business. In the FARM, the market is set because it’s specifically for high-risk drivers whom insurance companies don’t want to insure.

(The FARM is available to both high-risk personal drivers and high-risk commercial drivers.)

2. High costs

Second, high-risk insurance tends to be much more expensive than standard insurance. In many situations, high-risk insurance plans cost two to three times what a regular policy does.

In sum, there are two main differences between high-risk car insurance and regular car insurance:

High-risk insurance is purchased via a non-voluntary market
High-risk car insurance costs two to three times more than regular insurance.

In need of high-risk auto insurance? Contact BrokerLink today

At BrokerLink, we help Canadians purchase customized insurance plans tailored to their needs. Whether you're a high-risk driver or not, our brokers have access to multiple insurance companies and can help you shop around and find insurance that works for you and your budget.

To work with BrokerLink, you can visit us at one of our many locations across the country. You can also reach us over the phone or by email. Alternatively, take advantage of our free online quote tool for a competitive insurance quote ready within minutes.

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FAQs

Have questions? Our FAQ section has the answers you're looking for. Find helpful information to guide you through your options.

Who qualifies as a high-risk driver?

You may fall into the high-risk category if you have impaired driving charges, multiple traffic violations, at-fault accidents, insurance cancellations, or lapses in coverage.

How long does a high-risk status last?

Most of the time, you'll be considered high risk for three years or longer, depending on your convictions.

Can I get car insurance with a DUI?

Yes, you can get auto insurance after a DUI. Although your rates after a DUI will be higher, you can still secure high-risk insurance coverage through a high-risk insurance broker.

Is high-risk insurance available in all provinces?

Yes, every province has high-risk insurance for drivers.

Who qualifies as a high-risk driver?

You may fall into the high-risk category if you have impaired driving charges, multiple traffic violations, at-fault accidents, insurance cancellations, or lapses in coverage.

Can I get car insurance with a DUI?

Yes, you can get auto insurance after a DUI. Although your rates after a DUI will be higher, you can still secure high-risk insurance coverage through a high-risk insurance broker.

How long does a high-risk status last?

Most of the time, you'll be considered high risk for three years or longer, depending on your convictions.

Is high-risk insurance available in all provinces?

Yes, every province has high-risk insurance for drivers.

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