We regularly feature car insurance questions sent to Anne Marie Thomas, insurance advisor to InsuranceHotline.com. Anne Marie tackles all the tough questions asked, and this week’s question is no different.
“I have been categorized as a high-risk driver. My child, who lives with me, has a G2 licence and one year of insurance history from 2019. When renewal time came, the new insurer I talked to refused to add them as an occasional to the policy. Is this appropriate?”
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When one driver of a household is considered high-risk, it may affect the other drivers in the home too, explains Anne Marie.
“All Ontario auto insurance companies file what are known as ‘underwriting rules’ with the province’s Financial Services Regulatory Authority (FSRA). These rules spell out when an insurer can decide not to sell you a new policy or can opt not to renew an existing one. FRSA approves the underwriting rules for each provider.
“With a novice driver in your household, coupled with your high-risk classification, it sounds like you’ve exceeded the threshold of risk that your particular insurance provider is willing to take on.
“This could mean one of three things: You’ll have to shop around for coverage from a non-standard insurance provider that specializes in insuring higher risk drivers (assuming you’re not already with this type of insurer); or if you are, you’ll have to explore your options through the Facility Association (the insurer of last resort). Unfortunately for your young driver, if either of these attempts fail, they will not be legally permitted to drive your vehicle, ever, under any circumstance until you are no longer considered a high-risk driver.”