How Traffic Tickets Affect Your Auto Insurance Rates in Newfoundland and Labrador
Getting a traffic ticket can feel frustrating, but beyond the immediate fine, it can significantly impact your auto insurance premiums in Newfoundland and Labrador (NL). Here’s what you need to know about how speeding, distracted driving, and other traffic infractions affect your auto insurance rates.
The Impact of Traffic Tickets on Auto Insurance
Insurance companies view traffic tickets as indicators of risk. When you’re issued a ticket for speeding, distracted driving, or other traffic violations, your insurer may increase your insurance premiums upon renewal. In NL, your driving record is closely monitored, and multiple infractions can result in substantial premium increases.
According to the Insurance Bureau of Canada (IBC), drivers with recent tickets can expect higher rates because insurers consider them more likely to be involved in future incidents. For example, a single speeding ticket might cause a moderate increase, but multiple violations or serious offences like reckless driving can result in significant premium hikes or even policy cancellation.
Common Traffic Violations and Their Impact
Here are some common traffic violations in Newfoundland and Labrador and their potential impacts on your insurance:
- Speeding Tickets: Speeding is among the most common infractions. Typically, even one speeding ticket can lead to a noticeable increase in your insurance premiums for 3-5 years.
- Distracted Driving: Tickets for distracted driving, including cellphone use while driving can cause significant increases in your insurance rates, often higher than a simple speeding ticket, due to the high-risk nature of this violation.
- Impaired Driving: Impaired driving offences dramatically affect insurance premiums and may lead to difficulty finding coverage, requiring specialized high-risk auto insurance.
How Long Do Tickets Affect Your Insurance in NL?
In Newfoundland and Labrador, most tickets will remain on your driving record for three years from the conviction date. Insurance companies typically review your record during this period when calculating premiums. However, severe offences like impaired driving may affect your insurance for much longer.
Reducing the Impact on Your Insurance
While a ticket will impact your insurance, there are proactive measures you can take:
- Safe Driving: Maintain a clean driving record moving forward. Each year without additional tickets helps to reduce your risk profile.
- Driving Courses: Some insurers offer discounts for completing defensive driving or safety courses, helping mitigate premium increases.
- Shop Around: Different insurers weigh violations differently. Shopping around might help you find more favourable rates even with a recent ticket.
The Importance of Professional Advice
Consulting an experienced insurance broker, such as Wedgwood Insurance, can provide valuable guidance. Brokers can help identify the best coverage options and potentially negotiate better rates, even if your driving record is less than perfect.
Traffic tickets in Newfoundland and Labrador significantly impact your auto insurance rates, making it crucial to understand and manage your driving behaviour effectively. By staying informed and working with an experienced insurance broker, you can mitigate the financial impact of traffic violations and maintain affordable coverage.
About Wedgwood Insurance
Wedgwood Insurance has offices in St. John’s & Corner Brook and is Newfoundland & Labrador’s largest independent insurance broker. We provide straightforward home, auto & business insurance advice.
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