Insurance Impact of a Speeding Ticket
The fine you pay to the provincial court is often just a fraction of the true cost of a speeding ticket. The real financial penalty is levied by your auto insurance provider upon renewal.
The Hidden Cost
Insurance companies typically raise rates by 10% to 25% for a single minor speeding ticket, depending on your prior driving record.
Duration
A speeding conviction remains on your driving record and affects your insurance premiums for exactly 3 years from the date of conviction, not the date you were pulled over.
Major Offenses
Excessive speeding or stunt driving is classified as a "major" or "serious" conviction. Premiums often double, or you may be dropped by your carrier entirely.
How Insurance Companies Classify Tickets
Insurance companies do not strictly care about the exact number of demerit points you received. Instead, they categorize tickets into three distinct buckets:
- Minor Convictions: Going 1 to 49 km/h over the limit (in most provinces).
- Major Convictions: Going 50+ km/h over the limit, or driving without insurance.
- Criminal Code Convictions: Dangerous driving, impaired driving (DUI).
Demerit Points vs. Insurance Premiums
A common myth is that if you get a ticket with 0 demerit points (such as going 14 km/h over the limit in Ontario), your insurance won't go up. This is false.
Any speeding ticket issued by an officer that results in a conviction on your driving record can and will affect your insurance, regardless of how many demerit points it carried. The only exception is Photo Radar and Automated Speed Enforcement tickets, which do not go on your driving record.
Provincial Insurance Quirks
In provinces with public auto insurance, the system works a bit differently:
- British Columbia (ICBC): You must pay a "Driver Penalty Point (DPP) premium" directly to ICBC if you accumulate more than 3 points in an assessment period.
- Saskatchewan (SGI): Uses the Safe Driver Recognition (SDR) program where you lose points and financial discounts for convictions.
- Manitoba (MPI): Moving violations lower your Driver Safety Rating (DSR), which directly increases your premium and licence fee.