From $4k a year to over $14K: one Ontario man's car insurance odyssey

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Car insurance rates in Ontario are crazy, but sometimes, people are their own worst enemy. A recent report by CTV News highlights the concept that when it comes to infractions, a lot of little things can add up. A 26-year-old Guelph man, Tyler Marchildon, is anticipating his car insurance rate going from $4,000 a year to $8,500 after a series of misadventures. If he makes a planned move to Mississauga, that number leaps to a whopping $14,291 per year.

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What landed him here? Two speeding tickets, two charges of failure to produce his insurance pink slip, and an at-fault collision after he backed into another vehicle. That vehicle sustained damage, though his truck did not. All of this has sent his insurance rates soaring. Could he have handled it differently?

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From $4k a year to over $14K: one Ontario man's car insurance odyssey Back to video

Mississauga is one of the most expensive cities in the province to insure a vehicle in. Not much getting around that fact, but there are definitely things that could happen to make his situation better. I ran the story past Debbie Arnold, a broker with Sound Insurance. 

While the article says “s peeding tickets will stay on your driving record for three to six years and with some insurance companies as long as 10”, our Guelph driver should be happy to hear that is incorrect. Says Arnold, “ convictions remain on record for 3 years only in Ontario and therefore can only be rated for 3 years.  Only license suspension can be rated for up to 6 years, as per the standard Ontario automobile application.” He won’t be haunted by these forever, and if he keeps his record clean going forward, he should see his rates subside. Important note: the 3 years starts ticking at the date of conviction, not the day you get the ticket.

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What about those pink slips? Police know before they ask you to produce them if the vehicle has insurance — they’ve already run your plate through their system. Failure to have actual insurance means a fine of $5,000-$50,000; forgetting your slip pales in comparison, but the law requires you to have it (unless you have it in electronic form on your phone). A program introduced in Ontario in 2019 created the electronic documentation. Per the government website:

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But Arnold has two other important pieces of advice for Mr. Marchildon. “This particular individual should fight the “fail to carry insurance card” tickets, and he has an option to open them for appeal. When he does so, he has to notify the MTO so that they are removed from his record until the appeal is heard.” Pink slip charges can be reversed when you prove to the court you do have insurance. 

The second is something we all should be aware of. In 2016, the Minor Collision Guideline was implemented by the Ontario Government. “If the damage to the third party [the vehicle of the person Marchildon backed into] was under $2,000 and no injuries were sustained, he could have paid out of pocket and no insurer could rate him for that accident. If the at-fault party pays for all damages, which cannot exceed $2,000 per vehicle, no injuries were sustained and no payment made by an insurance company, the loss cannot be rated. Drivers are allowed one every 3 years,’ says Arnold. 

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This is like a grace clause for times when little damage is done. It is very easy to underestimate the amount of damage that might have been caused, even in a slight parking lot bump, but it is worth exploring and you can do it above board. You can both report to a collision centre, but you have the option — legitimately — of paying to keep it off your record if it doesn’t exceed those parameters. 

Marchildon is right that our insurance rates are unforgiving, and he also told CTV that he could understand if he’d been charged with something like stunt driving. The fact is, four minor convictions will generate a 25 per cent surcharge and put you in a non-standard market.

“Each carrier has specific underwriting guidelines for risks they will not write. These guidelines are filed with FSRA (Financial Services Regulatory Association) and cannot be overridden. Most regular carriers will say “One at-fault loss in 6 years with 2 minor convictions” will not be written,” says Arnold, which means you have to keep your record clean if you live in this province. Speeding tickets you get elsewhere are also covered under reciprocal agreements with most provinces, and with many American states. You have to behave no matter where you’re driving.

Talk to a broker. They can really make a lot of difference in this insurance climate.