Can Speeding Tickets Affect My Car Insurance?

November 14, 2023

How fast were you going and what were the circumstances?

The impact of speeding tickets or demerit points on your car insurance can depend on your location, insurance provider, and the specific circumstances of your driving record.

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Here’s how both speeding tickets and demerit points can lead to higher car insurance premiums:

Speeding tickets

Speeding in a school zone, speeding in a construction zone, and speeding more than 50 km/h over the speed limit can all be major traffic convictions.

Speeding up to 45 km/h is generally a minor traffic conviction. Speeding as part of an activity that is a criminal code violation, such as racing or stunt driving, will impact your car insurance the most.

One major traffic conviction can increase your car insurance rate by about 25%, and two can increase it up to 100%. A criminal code violation can result in an increase of 60%-300% in your car insurance rate.

Did you know?

Speeding only saves a few minutes per trip on average, while driving at the speed limit could save you thousands of dollars.

Parking tickets do not affect your car insurance directly because they are not moving violations and do not pose a risk to the car or the driver.

Demerit points

If you receive a speeding ticket or other traffic ticket from a police officer, you may get demerit points, and if you get too many your license will be suspended.

If you get a speeding ticket from a police officer and are convicted, your car insurance rate may go up. If you get too many major traffic convictions, your car insurance may not be renewed.

The purpose of demerit points is to encourage safe driving behavior by assigning penalties to drivers who accumulate points on their driving records. The points accumulate over time as you commit additional violations. Insurance companies often consider your demerit points when determining your insurance premiums. A higher number of demerit points can lead to higher rates because it suggests a riskier driving history.

Did you know?

In some jurisdictions, demerit points can be reduced or expunged from your driving record through safe driving practices or by completing defensive driving courses. Check your provincial driver’s guide for specifics.

Location and insurance provider

The impact of speeding tickets and demerit points on your insurance rates can vary from one location to another due to differences in provincial laws and insurance regulations.

Different insurance providers have their own policies and algorithms for calculating premiums, so the exact rate increase can vary.

Driving record and other factors

Your overall driving record plays a significant role in determining your insurance rates. If you have a history of multiple speeding tickets or other traffic violations, it can lead to substantial rate increases.

Other factors that affect your insurance rate include your age, the type of car you drive, your claims history, and where you live.

Young men will pay higher premiums due to their statistical risk level, as will owners of sports cars, for example.

Want to stay protected and keep your premium low? Check with your specific insurance provider to understand how speeding tickets and demerit points will affect your monthly insurance costs.

In the meantime, you can mitigate the impact of any points you’ve already collected by taking defensive driving courses or maintaining a clean driving record for a specified period, which will lead to lower premiums in the future. Stay safe!

Ask your Western Coast car insurance expert about discounts for your car insurance.