Licence suspensions are generally very stressful and inconvenient. Unfortunately, the stress doesn’t end once your licence gets reinstated because, for most people, car insurance rates often rise after a licence suspension. Read on to learn how each type of licence suspension affects car insurance, what happens after your licence is reinstated, and how to find affordable coverage after all.
Before writing this guide, our team reviewed Ontario’s licence-reinstatement process, the province’s medical-review process, Ontario Regulation 664, FSRA’s approved-underwriting guidance and our Internal Quote data to see how a licence suspension impacts auto insurance premiums.
What to Do After Your Licence Is Reinstated?
- Step 1: Confirm your licence has been fully reinstated. First, confirm that every reinstatement condition has been completed and that the Ministry has restored the correct licence class. Ontario currently charges a $281 reinstatement fee, but medical, court, and remedial program requirements vary depending on the reason for the suspension.
- Step 2: Understand how the suspension affects your insurance. A suspension is not a universal six-year insurance penalty. Demerit points, convictions, driver abstracts, and insurer underwriting look-back periods are all different records with different timelines. If your insurer increases your premium, declines coverage, or refuses to renew your policy, ask which approved underwriting rule and which record (such as your driver abstract or conviction history) it relied on. If coverage is declined or not renewed, FSRA requires insurers to identify the applicable underwriting rule in writing.
- Step 3: Confirm your policy is still valid. Do not assume that a suspension automatically voids your existing policy. Ontario Regulation 664 limits when insurers can terminate coverage, while false information or failing to disclose a material change in risk may create separate consequences. Before driving again, confirm whether your policy remains in force, whether every household driver is correctly listed, and whether any exclusions, such as OPCF 28A, apply.
Read More: How OPCF 28/28A Works
Will My Car Insurance Rates Go Up After a Licence Suspension?
Your car insurance rates generally will go up after a licence suspension. However, it might not increase depending on the reason for the suspension. In Ontario, insurers are restricted from raising rates for administrative or medical suspensions that last less than a year, provided no criminal or traffic conviction accompanies it.
According to MyChoice’s internal data, an alcohol-related license suspension can double or triple your car insurance rates in some cases.
Can an Insurer Cancel My Policy After a License Suspension?
Not automatically. Under section 12(1) of Ontario’s Compulsory Automobile Insurance Act, a licence suspension by itself is not one of the legal grounds for cancelling an existing auto insurance policy in Ontario. However, depending on the reason for the suspension, it may be considered a material change in risk, which could allow an insurer to cancel or refuse to renew your policy.
Read More: Getting Car Insurance After Cancellation in Ontario
What Causes Licence Suspensions in Ontario?
According to the Ontario Ministry of Transportation (MTO), driver’s licences could get suspended for several reasons, such as:
- Driving without insurance.
- Failing to stop for a police officer.
- Accumulating 15 or more demerit points (for fully licensed drivers).
- Failing to attend a required driver improvement interview or remedial program.
- Certain serious Highway Traffic Act or Criminal Code offences, including excessive speeding, impaired driving, dangerous driving, or failing to remain at the scene of a collision.
Many licence suspension cases happen at roadside stops with a police officer, but you can also be suspended through a court order or a letter from the Ministry of Transportation.
Will Insurance Companies Know About My Licence Suspension?
Yes, insurance companies will know about your licence suspension because it’s going to be reflected on your driver’s abstract. Insurers are not automatically notified every time a licence is suspended. However, they commonly review driver abstracts when issuing or renewing policies, investigating claims, or when an insured reports a material change.
Most Ontario auto insurance policies require policyholders to disclose material changes that could affect the insurer’s assessment of risk. Depending on the reason for the suspension, this may include notifying your insurer.
What Shows Up On Your Record After a Licence Suspension?
The following details will show up on your driving record after a licence suspension:
- Updated demerit point total
- Any active fine suspensions, traffic violation convictions, suspensions, and licence reinstatements
In addition to your suspension and demerit details, your record also shows your driver identification details and other essential information about your licence.
How Long Do Suspensions Last on My Driving Record?
Typically, licence suspensions stay on your public record for 6 years, while conviction details remain for three.
Read More: How to Deal With Traffic Tickets in Ontario
Reducing Car Insurance Premiums After a Suspension
So, you’ve been suspended, and after reinstatement, your car insurance premiums have risen. How do you reduce your Ontario car insurance rates? Here are some ways to do it: