How Does a DUI Conviction in Canada Affect Insurance Policies and Rates?
Memorize the following list and recite it to yourself if you ever find yourself behind the steering wheel of your vehicle, contemplating whether you are sober enough to drive:
- A federal driving prohibition of one to three years for a first offence, plus any period of imprisonment.
- A minimum $1,000 fine (and other fees).
- Mandatory enrolment in Ontario's "Back on Track" education/treatment program before licence reinstatement.
- An ignition interlock device condition upon licence reinstatement; the required period depends on Ontario's applicable rules and the date of the offence.
- A criminal record.
Those are among the consequences that may follow if you are convicted of a first-time driving under the influence (DUI) offence involving alcohol or drugs. And while they may seem costly, you should also consider the impact a DUI might have on your motor vehicle insurance rates. A conviction can cause a substantial premium increase, but there is no reliable "double your rate and multiply by three" formula: the amount and duration depend on the insurer's approved rating and underwriting rules and your overall risk profile.
Because insurance-related costs often represent one of the most significant financial impacts of a DUI conviction, the criminal defence lawyers of TorontoDUI thought it would be a good idea to examine the issue in more detail. We'll use this Knowledge Centre blog to explain how a DUI in Canada can impact your motor vehicle insurance policy and rates.
Do You Have to Inform Your Insurance Company About a DUI Arrest?
Policy terms vary among insurers. If a DUI charge arises from a traffic accident, the accident must generally be reported to the insurer promptly; Ontario's standard owner's policy requires written notice within seven days of an incident that must be reported to police, or as soon as possible if the insured is unable to meet that deadline. Without an accident, whether and when a charge, conviction or licence suspension must be reported depends on the policy and the questions asked by the insurer. Read the policy and answer the insurer's questions fully and accurately. Failing to provide required information can put coverage at risk.
If you were arrested for DUI after an accident, a charge does not by itself determine fault for insurance purposes. However, Ontario auto-policy exclusions allow an insurer to deny payment for loss or damage to the vehicle where the driver was unable to maintain proper control because of alcohol or drugs, or was convicted of specified Criminal Code offences related to the vehicle, including impaired operation and refusal to comply with a lawful breath demand. The exact effect on a claim depends on the coverage, policy wording and facts.
Convicted of DUI? — You Are Now a "High-Risk Driver
After you've been convicted of DUI, your insurance company may decline to renew your policy if the conviction engages one of its underwriting rules. Ontario insurers may decline, non-renew or alter coverage only under underwriting rules filed with and approved by the Financial Services Regulatory Authority of Ontario (FSRA), and an insurer that refuses to issue or renew a policy must identify the rule it relied on in writing. Impaired-driving convictions are treated as serious risks, but the applicable rule and result vary by insurer. Ontario's auto-insurance system still makes required coverage available to eligible drivers who cannot obtain it in the voluntary market.
High-Risk Drivers Can Get Insurance for a Steep Price
Ontario's insurance system ensures that eligible high-risk drivers can get required auto insurance, but it is typically offered at a steep price. Several insurance companies in the province specialize in insuring high-risk drivers and charge higher premiums for accepting that risk. Additionally, every Ontario insurer licensed to write automobile liability insurance belongs to the Facility Association . Its residual market ensures insurance is available to eligible owners and licensed drivers who would otherwise have difficulty obtaining it.
No matter who insures you after a DUI conviction, insurers calculate premiums using numerous factors, including driving history, where you live, prior claims, and vehicle type. A DUI conviction can become a significant and expensive rating factor, but there is no reliable universal dollar range.
Ontario's common three-year driver record includes Highway Traffic Act and Criminal Code convictions, suspensions and reinstatements from the past three years. A five-year record includes Criminal Code convictions, suspensions and reinstatements from the past five years, while extended and complete records can contain information going farther back. The standard Ontario auto-insurance application asks about driving convictions from the last three years and accidents or claims from the last six years. Those record and application periods are not a promise that every insurer will increase premiums for the same length of time; each insurer's approved rules and rating system apply.
How to Get Insurance as a High-Risk Driver
If your auto insurance is not renewed due to a DUI, you may need to seek high-risk auto insurance from an Ontario insurance company that offers it or, if the voluntary market will not insure you, through the Facility Association . Consumers obtain Facility Association coverage through a licensed broker or agent rather than directly from the Association. Seek more than one quote because insurers' approved rates and underwriting rules vary.
If you're a repeat DUI offender with other moving violations or otherwise deemed a high-risk driver, you might not be able to find a voluntary-market company willing to provide coverage. In this case, an eligible driver may need Facility Association coverage at a much higher rate. Facility Association does not itself issue policies; servicing carriers issue policies, collect premiums and handle claims on its behalf.
How to Save Money on Premiums as a High-Risk Driver
No matter who insures you after your DUI conviction, you should shop around for the best rates in the ensuing years. If you have maintained a safe driving record since your conviction, you may be able to secure lower-priced insurance from a high-risk insurer or eventually from a regular insurance company.
Choosing a less expensive vehicle to insure and comparing available coverage and deductibles may reduce premiums, although required coverages must remain in place. Some drivers may decide to give up car ownership while insurance remains expensive.
Don't Become a "High-Risk" Driver Due to a DUI Conviction
Of course, the best means of avoiding the high insurance rates that come with a DUI is never to drive while impaired. However, if you are now facing a criminal trial for DUI charges, do not consider pleading guilty until you have spoken to a skilled criminal defence lawyer. While you might be concerned about the costs of hiring a lawyer, a criminal DUI conviction can have a much greater financial impact. With extensive experience defending Greater Toronto Area clients from DUI-related charges, contact TorontoDUI for a free consultation.
