September 27, 2022 by Canadian Underwriter Staff
Client sent a text while driving and got caught? A conviction for that infraction beyond the police fine can cost a driver a 70% premium hike when it’s time to renew, said a new study from RatesDotCa.
The study was based on a hypothetical 35-year-old employed, single male driver who lives in Toronto, logs about 10,000 kilometres a year and starts out with a clean driving record. He parks in a private driveway, has been insured since 2003 and with the same insurer for two years.
That driver saw his annual quoted rate jump from $2,592 annual quoted rate to $4,406 following the distracted driving ticket (classified as a “prohibited use of hand-held device while driving”), according to the study.
So, losing a clean driving record can cost.
“Most insurance companies do not permit drivers to have even one major conviction like distracted driving,” said RatesDotCa auto insurance expert Kelsey Hawke. “Automatically, [this conviction] would force you to a higher-risk market where you would pay a higher premium for the same coverage.”
Here are some other things the study said can hike premiums:
Feature image courtesy of iStock.com/RobertCrum