SPEEDING AND INSURANCE RATES

Speeding, Demerit Points and Insurance Rates

Demerit points do not directly affect insurance rates. Instead, it is the actual speeding conviction which can potentially raise your insurance premium. So, a conviction for speeding 15kphover the limit (no points) will affect your insurance rates the same way a speeding 20kphover the limit (3 points) would. Ultimately, it is up to your insurance company how your rates will be affected. Even your insurance company or insurance broker, however, will tell you that points do not make a difference in terms of how your insurance rates will increase as a result of a conviction.

As an example of how a speeding conviction will affect your insurance rates, a listing of how the Facility Association of Ontario (which insures high-risk drivers) raises insurance rates are offered here.

Speeding 50kph+ over the limit (6 demerit points)
Racing (7 demerit points) 100% increase upon conviction.
Speeding in a school or playground zone (0-4 demerit points) 15% increase for the first conviction, and a 25% increase for each additional conviction.
Speeding 1-49kphover the limit (0-4 demerit points) 5% increase for the first conviction, 15% increase for the 3rd conviction, 25% increase for the 4th conviction, and a 15% increase for each additional conviction.

Though demerit points do not directly affect insurance rates, accumulating enough demerit points can lead to a licence suspension which can potentially increase a driver's rates.

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