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high risk insurance
Jan 28, 2022
3 min
Guide to High Risk Auto Insurance

Canadian car insurance providers offer numerous types of coverage. Car insurance providers do this in order to meet the needs of several different kinds of drivers, ranging from low to high risk.

If you’re in the process of buying car insurance for the first time, you may not be aware of the nuances of finding and buying high risk insurance in Canada.

Although you may not need high risk coverage right now (depending on your age, but we’ll touch on that again later on), it’s beneficial to know the ins and outs of this type of car insurance. Knowing the nuances of high risk coverage can help you make finding and buying it easier if you need it in the future.

Continue reading to learn more about high risk coverage in Canada.

High risk auto insurance vs traditional car insurance — what’s the difference?

The primary difference is that high risk coverage is more expensive, due to the fact that it is intended for high risk drivers.

What is a high risk driver?

In layman’s terms, a high risk driver is a policyholder that is more likely to file a car insurance claim than the average motorist in Canada. 

If you submit more claims than the average driver in Canada, then you’re essentially taking more than your fair share of the collective policyholder’s contributions.

When this happens, car insurance providers are obligated to charge the motorist more for coverage. 

How much does high risk car coverage cost in Canada?

There’s no set-in-stone answer due to the fact that the price differs from provider to provider and is heavily influenced by your personal risk level. We can say that most high risk drivers in Canada pay anywhere from 25% to 100% more than their low risk counterparts.

So, unless you’re willing to pay a considerably higher amount for car insurance in Canada, you should do everything that you can to stay out of the “high risk” zone.

What factors make you a high risk driver in Canada?

Here are some of the common factors that can turn a regular driver into a high risk driver in Canada:

A large number of past insurance claims in a short period of time

Have you been involved in a number of car accidents over the past few years? Were you deemed “at-fault” for any of these accidents? If so, you’ll likely need high risk coverage to balance out the number of claims you’ve made in the past. 

Not being a homeowner

Although it isn’t always the case, a handful of providers may consider you high risk if you don’t own a home. If you own a home, you’re likely financially stable and able to make your car insurance payments on time. In contrast, if you don’t own a home, you have one less thing to prove that you’ll be a valuable, responsible policyholder.

Bonus tip — If you do own a home, you can save a significant amount on your insurance by bundling your policies with the same provider. In most cases, policyholders can save upwards of 25%.

Being between the ages of 16 and 24

Drivers between the ages of 16 and 24 aren’t considered “experienced drivers”, so most car insurance companies deem them high risk. If your child owns their own vehicle, they will likely need to obtain high risk coverage. But, if your child shares your vehicle, you can help them save on coverage by naming them as a secondary driver.

Please remember that these are just a few of the factors. You can reach out to your provider or a Surex insurance advisor to learn more about what variables influence your risk level.

Why is getting high risk car insurance difficult in Canada?

Getting high risk coverage in Canada can be an uphill battle for several reasons. However, the primary factor is that being a high risk driver makes you less of an asset and more of a liability to your provider.

Low risk drivers are an asset to car insurance providers because they make payments on time and rarely get into accidents. In turn, the provider doesn’t have to spend much time or energy dealing with low risk policyholders.

In contrast, high risk drivers generally get into car accidents more often and are more likely to miss payments, thus, they take up more time and energy to work with in the long run. With all of this in mind, it’s easy to see why many car insurance providers aren’t keen on covering high risk drivers.

Do you need help finding and saving on high risk coverage in Canada?

Whether you’re a young driver, have a low credit score, or anything in between, you most likely have questions about getting high risk coverage. If you’re struggling to find car insurance that meets your needs and works with your budget, you should team up with one of the high risk insurance brokers at Surex.

Our team of top-notch insurance brokers have an impressive amount of industry knowledge and experience, giving them the expertise to find you the best quotes on the market. Within ten minutes, our team can provide you with upwards of ten personalized quotes, regardless of your risk level.

Although high risk coverage is never cheap, we can help make it more manageable by offering competitive quotes from Canada’s best high risk insurance companies.

Call or click to get started! A ten-minute chat can help you save a significant amount on your car insurance rates.

What have you learned about getting high risk coverage?

Although most drivers don’t need high risk coverage, it’s important to understand how it works. Remember, if you don’t want to be considered a liability by insurance providers, then you should do your best to maintain a good credit score, drive safely and keep your claim-making to a minimum.

Find the best insurance rates today.

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