Many drivers think that the most expensive part of a traffic ticket is the financial result only, and while this can be painfully expensive in some legal jurisdictions, it is nevertheless not the most concerning part. The most expensive part becomes known after the ticket, and becomes a concern for three to five years: signifficant increase on your insurance premiums! Insurance is "risk management;" it manages your risk of catastrophic damage to your vehicle, your person, or other persons or vehicles involved in any kind of accident. Insurance companies are in the "risk management" business: for the cost of your premiums, they'll cover you in the event you damage something or someone. But chances of you claiming compensation determines how much they charge you. To figure out your premium, they look primarily at your driving record. Therefore it is in your financial interests to maintain your driving record spotless. But many motorists get stopped by police at
Ontario demerit points and insurance rates is another popular topic of conversations and confusion. Whether one acquires a 3 point or 0 point offence does not make a difference in terms of how insurance rates will be affected. Simply stating that Ontario demerits do not play a role in the increase of insurance premiums is not entirely correct. There is a link between Ontario demerit points and insurance rates. The accumulation of points can result in a licence suspension, and licence suspensions can increase rates. The increase in premium depends on the insurance company and the type and length of suspension from traffic ticket conviction. How many points will suspend a driving licence? It depends. Holders of G1 or G2 drivers can lose their licence for up to 60 days for the accumulation of 9 points on their record, and for up to six months if 9 points are accumulated again. A fully licenced driver can lose his/her licence if 15 points are reached. It is important to understand th