Texting and Driving: Insurance Nightmares Await

Texting while driving has become one of Ontario’s most dangerous and prevalent forms of distracted driving. In fact, in 2019, distracted driving was a factor in 8,494 collisions in Ontario, resulting in 55 fatalities and 1,513 serious injuries. While the immediate risks of accidents, injuries, and fatalities are well-known, many drivers fail to consider the long-term financial consequences that can result from this risky behavior—especially when it comes to auto insurance.

The penalties for distracted driving in Ontario are already steep, with fines ranging from \$615 to \$3,000 and license suspensions of 3 to 30 days for repeat offenders. However, the hidden insurance costs can be even more financially devastating in the long run.

Skyrocketing Premiums

Getting caught texting and driving, or being found at fault in an accident caused by distracted driving, can cause auto insurance premiums to increase dramatically. However, these financial consequences are entirely preventable. Insurance companies view distracted driving convictions as a significant red flag that a driver is high-risk. As a result, premiums can jump by 25% or more after just one offence.

For a driver paying $1,500 per year for insurance, that 25% increase would mean an extra $375 annually over a three-year period (which is how long the conviction typically stays on your record), which adds up to $1,125 in additional premiums—far exceeding the initial fine.

Repeat offences lead to even steeper rate hikes. A second conviction within three years could cause premiums to double or even triple. At that point, many drivers find themselves priced out of the standard insurance market altogether and are forced to seek high-risk insurance at exorbitant rates.

Loss of Discounts

Most insurance companies offer various discounts that can significantly reduce premiums for safe drivers. Common discounts include:

1. Claims-free discount
2. Conviction-free discount
3. Good driver discount
4. Multi-vehicle discount
5. Bundling home and auto insurance discount

A distracted driving conviction can cause a driver to lose eligibility for many discounts. Losing multiple discounts can easily increase premiums by hundreds of dollars per year.

Difficulty Finding Coverage

With multiple distracted driving convictions on their record, some Ontario drivers may find obtaining coverage from standard insurance providers challenging. They may be forced to seek policies from high-risk insurers covering drivers with poor records. However, there are resources and strategies available to help these drivers find affordable insurance, such as working with an insurance broker who specializes in high-risk drivers or taking a defensive driving course to demonstrate improved skills and responsibility.

High-risk insurance policies often come with 2-3 times higher premiums than standard policies. A driver previously paying $1,500 per year could suddenly face annual premiums of $3,000-$4,500 or more, potentially leading to significant financial hardship.

Long-Term Financial Impact

The effects of distracted driving convictions on insurance premiums can last for years. In Ontario, most convictions stay on a driver’s record for three years. During that time, they will likely be paying significantly inflated premiums, a constant reminder of the consequences of their actions.

Even after the conviction drops off their official driving record, insurance companies may continue to factor it into their risk calculations for several years. It can take 6-10 years of conviction-free driving before rates return to normal.

Over that extended period, the cumulative cost in higher premiums can easily reach $10,000 or more – an enormous price to pay for a momentary lapse in judgment behind the wheel.

Impact on Young Drivers

The insurance consequences of distracted driving can be especially severe for young and novice drivers in Ontario. Insurance rates are already at their highest for drivers under 25 due to their lack of experience. Adding a distracted driving conviction on top of that can make insurance utterly unaffordable for many young people.

Some may be forced to give up driving altogether if they can’t afford the inflated premiums. This can limit job prospects and independence at a critical stage of life. Others may be tempted to drive without insurance, risking severe legal and financial penalties if caught.

Broader Economic Costs

The insurance disaster caused by texting and driving extends beyond individual drivers. As distracted driving accidents and claims increase, insurance companies are forced to raise rates across the board to cover their losses. This means all Ontario drivers, even those with perfect records, end up paying more.

Additionally, the healthcare and emergency response costs associated with distracted driving accidents place a burden on the entire province. It’s estimated that distracted driving costs the Ontario economy over $1 billion annually in various direct and indirect costs.

So What is the Bottom Line?

While the immediate fines for texting and driving in Ontario are substantial, they pale compared to the long-term insurance costs that can result from this dangerous behaviour. Drivers who engage in distracted driving are not only putting lives at risk but also gambling with their financial future.

The next time you’re tempted to check your phone behind the wheel, remember that a moment of distraction could cost you thousands of dollars over many years. No text message is worth that price. For safety and your wallet, staying focused on the road and keeping your hands off your phone while driving is crucial.

By understanding and avoiding these hidden insurance costs, Ontario drivers can protect themselves financially while making the roads safer. Resisting the urge to text and drive is one of the most innovative insurance decisions you can make.