Ontario Auto Insurance FAQ

[Dina]

Thank you CWP....my mom was right...when the kids are small...there are small problems to deal with. When they are big...there's bigger problems to worry about.

[Sebi]

Quick question regarding the addition of an occasional driver...

Is it mandatory to add my wife to the insurance policy as an occasional driver? What happens if she drivers without being on the policy? I'm asking because she got her G2 a few months ago, but the insurance company wants to increase my policy by $500/year.. which is basically a 40% increase.

Thanks!

[peterm15]

Quick question regarding the addition of an occasional driver...

Is it mandatory to add my wife to the insurance policy as an occasional driver? What happens if she drivers without being on the policy? I'm asking because she got her G2 a few months ago, but the insurance company wants to increase my policy by $500/year.. which is basically a 40% increase.

Thanks!

For $500/year I'd just add her. Well worth the lack of hassle if something does happen.

[3zilla]

great thread ... just had a deer incident myself in my old 3. over 6 years without incident just got new insurance quote for my new 3 and my premiums actually dropped a little.

[CloudPump]

I have a general question(s) about Ontario teen insurance. My 17 year old son just got his G2 licence. He lives with me...his mom and brother (who has his own insurance and own car.) If I'm to put my year old 17 under my insurance policy so he can be a very occasional driver in my car, does this mean he can drive anyone else's vehicle that is not at our address with this (my) insurance? You see....this is the scenario...his father who lives elsewhere will be letting him drive his car whenever and however (if you know what I mean) he wants. If he should get into an accident with his father's car will my insurance be punished (increase) since he's covered under my insurance, which is allowing him to be covered for driving his father's car?
Another scenario....if my son is out one night with a friend and ends up driving the friend's car...who's insurance will be implicated if an accident should occur...the friend/or his parent, (since they are allowing him to drive their car,) mine or both ? Yes I'm paraniod...I have a teenager! Thanks so much in advance for any insite you may give me!

I'm a Registered Ontario Insurance Broker, so I'll clear this up.

All licensed driver's in your household need to be declared to your insurance company. If a declared driver is insured elsewhere (IE: on their own policy with their own vehicle) your insurance company will likely just note this on your file. If they do not have insurance elsewhere, they will need to be listed as a secondary or occasional operatator on your vehicle. For G2 or G licensed drivers over the age of 25 with no tickets and no accidents this will have no bearing on your insurance rate (9 times out of 10, this is not cast in stone, but I'm not going to get into very specific scenario's here). For G2 or G licensed drivers under the age of 25 who are male this will generate an occasional or secondary driver premium for which you will have to pay extra. For G2 or G licensed drivers who are female this will generate a (lesser) occasional operator premium (9 times out of 10, there are some companies who simply do not charge for female occ. operators).

Now if your occasional operator has tickets or accidents this can have a very adverse effect on your insurance. There are different limits for how many tickets or accidents are "acceptable" (I use that word very loosely) depending on the number of years licensed and the class of license (G2's get almost no leeway).

If your occasional operator has more tickets or accidents than acceptable by your insurer, you may be forced out of your insurance company and into a high-risk carrier. To avoid this, you may choose to use and OPCF 28a form to exclude the driver from your policy. This will prevent the "bad" driver from being rated against your policy, but also has the consequence of preventing this person from operating your vehicle under ANY circumstance, even emergencies. Violations of this excluded driver agreement have severe financial and potential criminal penalties.

For your specific scenario:

From what you've described, your son needs to be insured on either his father's policy or BOTH his father's and your policy. If he is allowed to drive his father's vehicle "whenever and however" he wants, he is an occasional operator even if he's not living in that home. If he is listed on his father's policy, you can potentially avoid having to list him on your policy as long as he is not a frequent occasional operator of your vehicle. If he does operate your vehicle on occasion, then you should list him on your policy as well.

If he is listed on just your policy and not his father's and is operating the father's car "whenever/however" and an accident occurs, there are two potential outcomes:

1) If the accident is minor, the insurance company (father's) will likely just pay out. Your insurance will be impacted because your occasional operator has just had their driving record negatively impacted. This will not effect you until the policy renews.

2) If the accident is major and the insurance company is on the hook for a large sum of money, they will investigate very thoroughly and may be able to prove that your son was an unlisted occasional operator of his father's vehicle. If so, they will deny the claim for material misrepresentation, they may (but likely won't) proceed with insurance fraud charges against his father, and your son will be unprotected from any potential lawsuits from the injured third party.

If your son is operating a friend's car and has an accident and he is insured on your policy. Your policy will be impacted as previously described (a driver on your policy just had their driving record get worse, - won't impact you until renewal). If he is not insured on your policy (or anywhere else for that matter) the accident will hurt the friend's policy until your son gains insurance of his own (or through you/the father,etc.). Once your son has insurance of his own where he is being rated for the accident, the friend may submit proof to his insurance company showing that your son is being rated for the claim and they will stop rating the friend for the accident.

-Geoff

[CloudPump]

Quick question regarding the addition of an occasional driver...

Is it mandatory to add my wife to the insurance policy as an occasional driver? What happens if she drivers without being on the policy? I'm asking because she got her G2 a few months ago, but the insurance company wants to increase my policy by $500/year.. which is basically a 40% increase.

Thanks!

Unless your wife is insured on her own policy with her own vehicle, then yes, it is mandatory, by law, to inform your insurance company of her newly licensed status and list her on your policy.

If she drives without being a listed driver and is involved in a claim, your insurance can/may be voided (void is a legal term that means it never existed). If your policy is voided, you will be refunded whatever premium you have been paid for the year, and then your wife will be charged with "operate motor vehicle - no insurance" and you will be charged with "vehicle owner without insurance". You may also be charged with insurance fraud.

That's the worst case.

Likely, your claim will be denied, your policy will be canceled and you will have a charge of "Material Misrepresentation" leveled against your insurance.

-Geoff

[ssolidd]

Hi guys this is really informative and thanks for bringing it up I have question regarding 2nd driver. I sometimes let my gf use my car when im at work (although I hate it... >.< ) can I declare it to my insurance as my second driver and do I have to pay something or no? (note: I have already paid my car insurance premium for one year already in advance).

[jaynsue13]

I am an Allstate insurance agent. If your GF is living in your household and she does not have insurance elsewhere then you are required to add her to your policy as a second driver. If she is insured elsewhere with another company then with your consent she is able to drive your vehicle without being on the policy. Hope this helps

[ssolidd]

I am an Allstate insurance agent. If your GF is living in your household and she does not have insurance elsewhere then you are required to add her to your policy as a second driver. If she is insured elsewhere with another company then with your consent she is able to drive your vehicle without being on the policy. Hope this helps

She live with her parents and she doesnt have an auto insurance only me but she got G liscense.

[orGhatcH]

Great info here. These scenario based answers help alot cause they are easier to understand.

Thank you guys!

[S.F.W.]

She live with her parents and she doesnt have an auto insurance only me but she got G liscense.

Is she on her parents policy as an occasional driver ?

[bubba1983]

Good info....
Now heres my q...
Im to be married soon this yr..which is my best route?
We both have our own cars and own insurance thru diff csrriers....were both 30 and up
Keep our sep carriers? Merge into one? Add each other to ea h others policy?
Go!

[ssolidd]

Is she on her parents policy as an occasional driver ?

No she doesnt have anything at all she just want to drive my car

[Wisecraker]

Good info....
Now heres my q...
Im to be married soon this yr..which is my best route?
We both have our own cars and own insurance thru diff csrriers....were both 30 and up
Keep our sep carriers? Merge into one? Add each other to ea h others policy?
Go!

It depends because some insurance companies give multi car discounts. There is no harm in you both going to the same coverage provider. Just make sure that there are no penalties for cancelling your policy, or find out when your policy ends and wait till then to cancel. In the meantime you can shop around. I found my amazing insurance rate through Kanetix.ca

[CloudPump]

No she doesnt have anything at all she just want to drive my car

She is required to be listed on her parents' policy. They are flirting with disaster.

-Geoff

[ssolidd]

She is required to be listed on her parents' policy. They are flirting with disaster.

-Geoff

Her parent doesnt have any policy... I just want to know if I declare my gf as second driver would it cost me alot or nothing at all?

[CloudPump]

Her parent doesnt have any policy... I just want to know if I declare my gf as second driver would it cost me alot or nothing at all?

If she is 25 or older with a G2 or better licence, no tickets and no accidents it shouldn't cost you a thing with most insurance companies.

If she's under 25 with tickets & accidents, you'll see a premium.

Either way, if you want her driving your car, you need her on your policy.

-Geoff

[JPJPJP]

Her parent doesnt have any policy... I just want to know if I declare my gf as second driver would it cost me alot or nothing at all?

If she gets into an accident, it would be rated on your own personal insurance, because you gave her consent to drive your car. It would be rated against you, until your girlfriend has insurance of her own, either being a primary or secondary driver. Reason being, any accidents need to be rated against someone. You should listen to CloudPump, and just add her to your insurance. It can and will, as he said, be disastrous on your part. Just out of curiosity, do her parents not drive?

[ssolidd]

@JPJPJP haha yes her father/mom cannot drive not even speak good engrish : )

[monkeyyy]

In terms of percentage, what type of increase can I see at my first at-fault accident? Clean record otherwise.

I've been insured with Meloche Monnex for 6-7 years as an occasional/secondary driver under my parents. I've only recently (~2 months ago) switched to my own plan since I purchased my 3. There was an at-fault against my parents at one point of time during the time I was insured under them, will this effect me at all?

Thanks.

[RetroLite]

Hey guys Im turning 25 in October and I was wondering if the insurance company will lower my premium down if I call them after my birthday and tell them I am 25. Or would they make me wait until the Renewal date? Has anyone been through this?

[Hyperion]

Renewal seems more plausible

[peterm15]

Mine didn't get lowered until I switched insurance companies. Paid the same amount from before and after 25.

[CloudPump]

Hey guys Im turning 25 in October and I was wondering if the insurance company will lower my premium down if I call them after my birthday and tell them I am 25. Or would they make me wait until the Renewal date? Has anyone been through this?

On Renewal.

Insuance is a contract to provide you with a service (insurance) in echange for a consideration (money) for a period of time (generally one year). The contract is based upon the terms and conditions agreed upon at the inception of the contract. The contract is not renegotiated until renewal.

-Geoff

[CloudPump]

In terms of percentage, what type of increase can I see at my first at-fault accident? Clean record otherwise.

I've been insured with Meloche Monnex for 6-7 years as an occasional/secondary driver under my parents. I've only recently (~2 months ago) switched to my own plan since I purchased my 3. There was an at-fault against my parents at one point of time during the time I was insured under them, will this effect me at all?

Thanks.

If you have been clean for 6-7 years you should have been offered an accident waiver with your policy. This would mean that (depending on the wording of your company's accident waiver) either your first accident is completely forgiven or that your 6* driving record is preserved upon your first at fault loss.

This would mean that you wouldn't see an increase due to an accident.

If you had an at-fault on your parents' policy then that *should* have followed you to your new policy and then I'm not clear on your claims of a "clean record"

-Geoff