Licence suspensions are generally very stressful and inconvenient. Unfortunately, the stress doesn’t end once your licence gets reinstated because car insurance rates often rise after a licence suspension. However, there’s no guarantee that your rates will skyrocket.
Before writing this guide, our team reviewed Ontario’s licence-reinstatement process, the province’s medical-review process, Ontario Regulation 664, FSRA’s underwriting guidance and MyChoice quote data.
Will My Car Insurance Rates Go Up After a Licence Suspension?
Your car insurance rates may go up after a licence suspension. However, the result depends on the reason for the suspension.
In Ontario, an insurer is not permitted to use an administrative or medical suspension lasting less than one year in its risk-classification system when the suspension is not connected to a driving-offence conviction.
A suspension connected to a conviction may have a much greater effect. MyChoice quote data shows that an alcohol-related suspension can double or triple premiums in some cases. The actual increase depends on the driver, conviction, insurer and coverage.
Can My Licence Be Suspended If I Don’t Break Traffic Rules?
A licence can be suspended for reasons unrelated to a driving conviction. These may include certain medical conditions, unpaid fines or outstanding support payments.
If you develop a medical condition that may make it unsafe for you to drive, your doctor or another healthcare professional may be required to report it. The Ministry of Transportation will tell you what medical information or testing is required before your licence can be reinstated.
Will Insurance Companies Know About My Licence Suspension?
Your licence suspension will be reflected on your driver’s record. However, your insurer won’t necessarily be notified immediately.
Insurers may check your record when you apply for a policy, renew coverage or make a claim. Most auto insurance policies also require you to report material changes that could affect the insurer’s risk assessment. Depending on the circumstances, this may include a suspension.
What Shows Up on Your Driving Record?
Ontario’s common three-year driver record includes:
- Your demerit-point total
- Active fine suspensions
- Highway Traffic Act and Criminal Code convictions
- Suspensions and reinstatements from the past three years
- Your licence status and other driver-identification details
Other Ontario driving records cover different periods. A suspension does not create one universal insurance penalty that lasts the same amount of time with every insurer.
What to Do After Your Licence Suspension Ends
Once your suspension ends, you may need to complete several steps before you can drive again:
- Pay outstanding fines.
- Complete any required programs, meetings or medical reviews.
- Confirm that your suspension has been lifted.
- Pay the reinstatement fee. Ontario currently charges $281, although the fee does not apply to every type of suspension.
- Renew your driver’s licence if required.
- Confirm that you have valid car insurance.
Additional requirements depend on why the licence was suspended and how long it remained suspended. Follow the instructions provided by the Ministry of Transportation rather than assuming your licence becomes valid automatically.
Can an Insurer Cancel My Policy After a Licence Suspension?
A suspension does not automatically cancel an existing policy. Ontario law limits when an insurer may terminate an auto insurance policy that has been in effect for more than 60 days.
False information or failure to report a material change in risk may have separate consequences. Before driving again, contact your insurer to confirm that the policy remains active and that every household driver is correctly listed.
Read More: Getting Car Insurance After Cancellation in Ontario
Reducing Car Insurance Premiums After a Suspension
If your premiums rise after reinstatement, keep a clean driving record and avoid further convictions or suspensions.
You can also compare quotes from other insurers. Companies use different approved rating and underwriting rules, so the price may vary. Compare the same limits, deductibles and optional coverage with every quote.
Bundling home and auto insurance may reduce the combined price, but compare the total annual cost rather than the advertised discount.