Are You Paying More Car Insurance Premium Than Your Friends? This May...

Are You Paying More Car Insurance Premium Than Your Friends? This May Be Why

By Dana Hughes | Business Contributor on December 15, 2016
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car insurance choosing factors

Without getting into much detail, yes, tickets that are issued under the Highway Traffic Act definitely affect your insurance rate. As is, car insurance premium rates are governed by your car’s make and model, modifications, your own location and driving prowess. On top of these, the tickets incurred over the last couple of years may just be responsible for the extra couple of hundreds you pay to your insurance company each year.

Is it true that parking tickets affect insurance rates?

Before getting auto insurance, you may have asked the question “do parking tickets affect insurance?”

Well, the truth is that car insurance premium can vary by the hundreds or even thousands between two companies and two different individuals even if they own the same car and live on the same street. The easiest way to find out how driving tickets affect your car insurance is to first classify the car tickets:

Parking ticket placed under windshield wiper
Ticket classification

There are 3 major ticket classifications that affect your insurance premium. Your insurance rate directly depends on the number of tickets and their types. However, it should be noted that parking tickets are not among the ones that have a say on the premium rates. They do not appear on your driver’s abstract as well, and not paying one simply means that your license plate will not be renewed.

The 3 major classifications that do have a direct effect on your insurance premium are:

  1. Minor tickets – these are minor offences that include defective brakes, failing to signal, failing to share the road, failing to surrender the license, headlight offenses, following too closely and improper opening of doors. There are hundreds of actions that can get you a minor ticket. The most common minor infractions include speeding and traffic light violations.
  2. Major infractions – these incur a more severe penalty as compared to minor infractions. That usually means bigger fines and a bigger dent on your pocket during your insurance premium payment. Other major infractions include speeding in a school zone and not having insurance at the time of checking.
  3. Serious tickets – there are actions that can cause you to lose your driver’s license or face criminal charges or both. Actions that can get you in such a quagmire include racing, DUI and careless driving (criminal negligence).
What is a driver’s abstract?

This is a wonderful way of keeping a tab on your most recent traffic violations and following them up with the necessary legal actions. The Ministry of Transportation of every province issues a report on the status of your personal license plate. You can get your own driver’s abstract from the DMV.

A driver’s abstract states all the details about the type of license you have, the renewal date, any license suspensions and reinstatements. It is also a consolidated report of all the traffic tickets that were issued in your name in the last 3 years.

Getting a driver’s abstract for about 10 USD can give you a good idea of how much your car insurance premium can cost and getting a driver’s abstract will tell you exactly why you may be paying the extra couple of hundreds every year.

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