It is now becoming common knowledge that demerit points acquired from traffic ticket convictions in Ontario do not affect insurance rates.  Whether one acquires a 3 point or 0 point offence does not make a difference in terms of how insurance rates will be affected.  Insurance companies increase rates based on the conviction, and not the demerit points. Simply stating that demerit points do not play a role in the increase of insurance premiums, however, is not reflective of the entire picture.

 

In fact, there is an indirect link between demerit points and insurance rates. Though demerit points do not play a direct role in increasing insurance premiums, the accumulation of demerit points in Ontario can result in a licence suspension, and licence suspensions can increase insurance rates.  A trusted broker to our firm explains that the increase in premium ultimately depends on the insurance company, the type of suspension that occurred, and the length of the suspension.  

 

How many demerit points does it take to suspend a licence?  That ultimately depends.  Particularly, novice drivers (Class G1, G2, M1 or M2) can receive a licence suspension for up to 60 days for the accumulation of 9 demerit points on their record.  Six demerit points results in an interview where the driver's licence can also be suspended provided the driver is not able to convince the MTO interviewer why he/she should keep his/her licence.  Novice Drivers can receive another suspension for up to 6 months if 9 points are once again accumulated on their record after being suspended the first time.  

 

Meanwhile, a fully licenced driver can receive a licence suspension if 15 points are accumulated on his/her record.  The driver's licence can also be suspended for up to six months if 15 points are reached again after receiving a suspension previously.

 

Licence suspensions can also be issued automatically as a result of a traffic ticket conviction bearing more than 4 demerit points.  Under the recent Novice Driver Escalating Sanctions program, an offence carrying 4 or more demerit points results in an automatic licence suspension for a novice driver (Class G1, G2, M1 or M2) convicted of the offence.  Particularly, a 30 day licence suspension is issued for the first occurrence, 90 days for the second, and the licence cancelled for a third occurrence.  Needless to say, in this particular case, given that insurance premiums can increase as a result of licence suspensions, the consequence associated with accumulating a 4-point offence versus a 0 point offence would presumably differ.

 

Demerit points stay on a driver's record for two years from the date of offence.  In some cases, depending on how many points you already have on your record, it may be worth fighting a ticket recently received especially if demerit points are set to come off your record soon.  The trial date for your new ticket will be scheduled sometime in the future (hopefully a date when the demerit points drop off your record).  Thus, if you are reaching the maximum amount of demerit points, it may be worth fighting a recent ticket received to avoid obtaining a licence suspension.  Aside from the possibility of the trial date being scheduled when demerit points come off your record, there is also the possibility of reducing demerit points when fighting your ticket.

 

In all of these cases, demerit points play a significant role in whether a driver's licence is suspended and in effect the insurance rate increase which may result.  Demerit points do not affect insurance rates directly although the role they play in determining whether licence suspensions are issued indicates that demerit points are not completely without consequence when it comes to insurance rates.

 

To view the demerit point chart, visit the following page.  

 

To read about the demerit point system and licence suspensions, visit the ff MTO page.