In ten years as an insurance broker, this has to be the question I’ve been asked more than anything else. The short answer is simple… No, demerit points do not affect your car insurance premium.
When it comes to surcharging for convictions, insurance companies take into consideration the number of:
- Minor convictions – Speeding less than 50km over the limit, cellphone violation, unsafe move, failing to use seat belt, etc.
- Major convictions – False statement of insurance, failing to report accident, operate motor vehicle with no insurance, failure to stop for a school bus, etc.
- Criminal convictions – Impaired driving, careless driving, criminal negligence, failing to remain at the scene of an accident, etc.
Insurance companies do not look at the demerit points associated with your convictions, only the number and type of convictions (listed above). Demerit points are only used by the MTO to determine whether or not to suspend your license.