Over 25 years driving, a couple mishaps equals being a high risk?

by Dan
(Ottawa, Ontario, Canada)

I have been driving since I was about 18 years old, also drove school bus and currently have a class D licence. Most of my family and friends consider me to drive like a typical "granpa", slow, careful and sure.

First issue: I have never had tickets or claims until 2009 which unfortunately seen me hit black ice and slide off the road causing about fifteen hundred dollars of damage that I had to pay the first thousand, no one was hurt, no other vehicles involved, not speeding, it was simply a snowy day that covered some black ice on a country road with bumps that caused the vehicle to go into the ditch. This was the only accident claim I ever had.

Second issue: my broker was changing companies and requested I fill out the required paperwork and supply a void cheque which I did, the broker either did not send the info to the new carrier on time or who knows what but the next thing I know I was canceled due to non payment of premiums even though the money was in the bank and the company just did not have the void cheque I sent.

Third issue: It seems 2009 was not my year. I was using a friends vehicle to drop off someone and I was pulled over by the police for apparently not coming to a complete stop at a stop sign, this particular evening was during a local fair that had a lot of people walking around and crossing the intersection so although I felt I would have made a complete stop I could not argue the fact that I possibly made a slow roll through the stop sign. The officer asked for drivers license, ownership and proof of insurance, this not being my car I searched for the insurance which I did find but it was an expired one from about a month or so before and my friend forgot to put the new one in the car, so I apologized to the officer and requested to be given 24 hours to show proof of insurance which I would bring to the police station the next day. The officer refused my request and gave me 3 tickets coming to about 300 dollars and loss of points. I went to court and explained what happened to the crown and he allowed me to pay the fines but would not lose any demerit points which was at least a little better than the alternative. I was going through some difficult times and had to claim personal bankruptcy which of course caused me to lose the 2007 chev malibu I was leasing. My job at the time and still today has me being an In Home Computer technician in which the company provides a vehicle as well as insurance so it was somewhat of a blessing that I no longer had to pay for a vehicle nor the insurance of it.

Presntly I am looking at purchasing a 1998 Nissan Maxima but do to the above incidents the broker stated that I would be considered a high risk driver! With all the premiums I have paid over the years and not having gone through anything to tarnish my clean driving record for well over 25 years I felt that should have been taken into consideration and because I no longer had my own insurance since I did not have or need a personal vehicle do to the fact the company I work for provides a vehicle to me also allows the broker to deem me as high risk and somewhat of a beginner driver because of not having personal insurance!

My question is this. Is it totally legal for insurance companies to be able to do this to people given the circumstances I have provided?
Obviously I find this treatment to be totally unfair and in my opinion it is just a way for the insurance companies to pad their business by making such outrageous requests of premiums. I was 100% fully insured on a brand new 2007 chev malibu at that time and paid about 800 yearly and now for a 1998 nissan maxima they are talking about 2500 a year in premiums which is not a full coverage, no comp or collision. I find this to be deplorable and it needs to be changed.
Thanks for listening and taking the time to reply back.
Dan B. of Ottawa, Ontario, Canada

High Risk Auto Insurance

Hi Dan

It sounds like you've had some misfortune for sure. But what you're going through is the standard practice. In the insurers eyes you have turned from a very good risk, to a higher risk for future big claims. The three tickets within a three year window is enough for most Ontario insurance carriers to refuse coverage.

Add in a non-payment cancellation (regardless of the circumstance), and an at fault accident (yes, a single car accident is at fault), and you've got big problems. The rate you have been offered is low compared to what a 19 year old in the same situation would face (try $5000 or more, easily).

One thing that surprises me is that your broker tried to change companies when you had an at fault accident on your record. Normally it's best to stay with the same company. But I don't know the full story and maybe you didn't have claims forgiveness making it easier to switch.

Please be sure to discuss this further with a licensed insurance representative. Oh, and by the way, you can check for better rates here:

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