Can Insurance Go Up With Demerit Points on a Driver’s License?

In Alberta, there is a demerit point program where points are collected against your driver’s license for every traffic violation that you are convicted of. Under the Motor Vehicle Administration Act, if a driver receives too many demerit points, their license can be suspended. In the article below, we will discuss if your auto insurance premiums can increase as a result of demerit points and traffic offenses.

Will My Insurance Go Up With Demerit Points?

The number of demerit points you receive on your license as a result of a traffic violation can depend on the severity of the traffic offense. There are other situations, where a driver may receive a ticket and not be awarded points or have been able to reduce points as a result of participating in a driver safety program.

Having an assigned point value on tickets is not directly related to how your insurance premium can be impacted. Instead, insurance companies tend to look at what type of violation was received and the number of tickets a driver has on their record when determining premiums and potential increases.

In a nutshell, demerit points themselves will not affect your insurance rate, however, the number and type of traffic violation tickets can increase your premium.

Types of Tickets

There are three different types of traffic infractions – minor, major and criminal. There is a long list of what falls under minor violations, including failure to stop at a traffic light, speeding, not wearing a seatbelt or not signaling when required. Major infractions come with a more severe penalty and the impact on your insurance premiums are also likely to be higher. These offenses include failure to report an accident, driving without insurance, failing to stop for/passing a school bus or speeding within a school zone or a playground zone.

The most serious of convictions can result in a driver losing their license and even facing criminal charges. This category includes careless driving, impaired driving, racing etc. While premium increases can vary amongst insurance companies, it is safe to say that these will have a severe impact on your policy rate.

Do Parking Tickets Increase Premiums?

It is common for individuals to receive the occasional parking ticket but they will not affect your insurance rate as they are not a moving violation. Also, in Alberta, tickets that are issued from having an expired sticker on your license plate will not increase your insurance premiums.

Having a clean driving record is one of the best ways to help keep your auto insurance premiums low. It is never too late to start trying to improve your driving record and be rewarded with a lower insurance rate.

To start saving on your auto insurance today, contact one of our experienced, knowledgeable insurance specialists.