High Risk Driver Insurance in Canada 2025

Updated March 2025  |  10 min read

What Makes a Driver High Risk?

Insurance companies classify drivers as high risk based on their driving history, claims history, and sometimes other factors. You may be considered high risk if you have:

• Multiple at-fault accidents in the past 6–10 years
• A DUI (impaired driving) conviction
• A stunt driving or racing conviction
• Multiple serious traffic violations (speeding 50+ km/h over, running red lights)
• A suspended or cancelled driver's licence
• A lapse in insurance coverage for a significant period
• Multiple insurance policies cancelled or not renewed by insurers for non-payment or misrepresentation

One at-fault accident typically does not make you high-risk for most purposes — it will raise your premium, but most insurers will continue covering you. It is the combination and severity of incidents that triggers high-risk classification.

The Facility Association

Every private insurance province in Canada (Ontario, Alberta, Atlantic provinces) has a residual market mechanism called the Facility Association. This is a collective of all licensed auto insurers that shares the risk of drivers who cannot get coverage in the standard private market.

If every insurer in the voluntary market declines to cover you, your broker can place you in the Facility Association. You will get coverage, but at rates that are significantly higher than voluntary market rates. The Facility Association is intended as a last resort and an incentive to improve your record, not as a permanent solution.

Specialty High-Risk Insurers

Between the standard market and the Facility Association, there are insurers who specialize in non-standard or high-risk auto coverage. These companies accept drivers with imperfect records and charge higher premiums that reflect the risk, but typically less than Facility Association rates. Examples include companies like Jevco (now part of Intact) and certain underwriting programs. Working with an independent broker who has access to the non-standard market is the best way to find these options.

How DUI Affects Your Insurance

A DUI (driving under the influence, or impaired driving) is one of the most severe marks on a Canadian driving record. The insurance consequences include:

• Immediate cancellation of your current policy in most cases (non-renewal at minimum)
• Requirement for an SR-22 equivalent in some provinces (proof of insurance filing)
• Premiums increasing by 100–300% or more
• Many standard insurers refusing to quote you
• The conviction remaining on your driving record for 10 years

After a DUI, expect to pay significantly elevated premiums for at least 3–6 years as you rebuild your insurability. Each year without a further incident gradually improves your position.

Stunt Driving and Street Racing

Stunt driving convictions (triggered in Ontario and Alberta at 50 km/h over the speed limit, among other behaviours) carry immediate roadside licence suspension, vehicle impoundment, and criminal charges. For insurance purposes, a stunt driving conviction is treated similarly to or worse than a DUI in terms of premium impact. Some insurers will not accept stunt drivers at all, pushing them into the Facility.

Strategies for High-Risk Drivers

Being in the high-risk category is not permanent. Here is how to work your way back to standard market rates:

1. Maintain continuous coverage: Do not let your insurance lapse. Gaps in coverage make you harder to insure and more expensive when you do get coverage.
2. Drive carefully and avoid any further incidents: Every year without a claim or conviction removes some of the premium surcharge impact of older incidents.
3. Work with a specialty broker: Independent brokers with access to the non-standard market can find options that standard online comparison tools will not show.
4. Complete a defensive driving course: Some insurers credit this. It can also help with driving record improvements in some provinces.
5. Consider a telematics program: Demonstrating safe current driving behaviour may convince some insurers to accept you or offer better rates.
6. Drive a modest, low-cost vehicle: High-risk surcharges are applied to the base rate. A cheaper vehicle to insure means lower absolute dollar surcharges.

How Long Does High-Risk Status Last?

Most incidents affect your driving record and insurance rates for 6 years (minor violations, minor at-fault accidents). Major convictions like DUI remain on your Ontario driving abstract for 10 years and affect insurance for at least 6 years from the conviction date. With consistent clean driving, most drivers can return to the standard market within 3–6 years after a serious incident.