How Insurers Actually Rate a Conviction

Demerit points and insurance rating are two separate systems that happen to be triggered by the same event: a conviction. Understanding the difference clears up a common misunderstanding.

What to Know

• Insurers calculate rates using their own formula, factoring in more than just a driver's demographic profile.
• Traffic convictions are classified by insurers as minor or major, and that classification — not the demerit point count — drives the size of any surcharge.
• A careless driving conviction, as a major conviction, can bring a significant surcharge and may affect eligibility for standard-market coverage.
• A conviction typically affects insurance rating for three years from the date of conviction.
• The Ministry of Transportation's demerit points do not feed directly into an insurer's calculation — it is the conviction on record that matters to them.