When an insurance company reviews a car insurance application to set the premium, they consider a variety of factors. The premium largely depends on how risky they think it is that you’ll file a claim. To figure this out, they gather details like your age, driving history, how often and where you drive, the specifics of your vehicle, and the type and amount of coverage you want. But could medical conditions also play a role in this? Let's find out.
Do medical conditions affect my car insurance premiums?
First off, insurance companies in Canada don’t specifically ask for a medical report or about your medical conditions, as your health isn’t something they consider when setting your car insurance premium. However, there are other ways your medical condition could affect your insurance premiums indirectly.
For example, if you have Attention Deficit Hyperactivity Disorder (ADHD), you are statistically more likely to be pulled over or involved in an accident. This is because driving takes a lot of focus, and people with ADHD often have a hard time focusing and are easily distracted. This leads to more distracted driving -related offences and collisions, which then leads to high insurance premiums.
Why? Well, traffic convictions like distracted driving or speeding go on your permanent driving record, which insurance companies use to determine your insurance rates. These convictions can stay on your record for up to six years, meaning you'll be stuck with higher insurance premiums the entire time.
Plus, when you submit an insurance claim for an at-fault accident, your premiums are likely to increase unless you have accident forgiveness and the more claims you submit, the more they increase until, eventually, you're labelled as a high-risk driver. This insurance costs even more to carry, and not every insurance company offers it.
What medical conditions make you unable to drive?
There are many medical conditions that can make driving unsafe. Some of these include dementia, epilepsy, seizures, vision impairment, diabetes, narcolepsy, traumatic brain injuries, certain psychiatric disorders, and more.
Does a medical suspension affect insurance in Ontario?
Since 2018, Ontario no longer includes medical suspensions on your driving record. Previously, the suspension would stay on your record for three years. Now, once the medical suspension is over, it’s completely removed from your driving record.
Medical licence suspensions
While your medical condition doesn't directly affect your car insurance policy, every driver still has to meet basic medical requirements to be on the road. These requirements ensure you don’t have any health conditions that could affect your ability to drive. If a medical condition does impact your driving ability, it could lead to a driver's licence suspension.
For example, if you develop a medical condition that affects your ability to drive while holding an Ontario driver’s licence, it can result in a licence suspension. Doctors are legally required to report anyone over 16 who they believe is unsafe to drive due to a medical condition to the Ministry of Transportation (MTO). After the report is submitted, it’s reviewed, and a decision is made. If it’s determined that you can’t drive for medical reasons, you’ll receive a medical suspension, along with a letter explaining the steps to get your licence reinstated.
Does a medical suspension affect my car insurance premium?
If your licence gets suspended due to a medical issue, it might affect your insurance premiums, but it depends on where you live in Canada and how long it stays on your record.
Since 2018, Ontario no longer includes medical suspensions on your driving record. This change came after a complaint, as previously, the suspension would stay on your record for three years. Now, once the medical suspension is over, it’s completely removed from your record.
So, what does this mean? Basically, once you're medically approved to drive again, your suspension will disappear from your driving record. This is different from a driving offence-related suspension, which would stay on your record and affect your insurance rates for at least 10 years. Let's break this down further:
Suspension for less than a year
If your licence is medically suspended for less than a year, it probably won't affect your insurance premiums. As most insurance policies last for one year, when your renewal period comes up, if your suspension is over, then it won't appear on your driving record.
Suspension for 12 to 36 months
But what if the suspension lasts longer than a year? According to the Financial Services Commission of Ontario (FSCO), if the suspension isn't related to a driving offence, insurance companies are allowed to consider it in their risk assessment if it lasts between 12 and 36 months. However, the insurer has to submit a rate filing with supporting data to FSCO to justify using that suspension in their pricing. Without this approval, they can't use a suspension of 12 to 36 months to affect your rates.
Suspension for more than 36 months
If a suspension of a driver's licence lasts more than 36 months, the FSCO allows insurers to include it in their risk assessment without needing extra actuarial evidence. However, the insurer’s rules still need to meet the required legal standards for approval.
But remember, while your insurance company may consider your licence suspension temporarily, it will still disappear from your driving record as soon as the suspension is lifted, meaning your insurance premiums will return to their lower rate upon your next renewal.
What if I’m caught driving under a medical suspension?
If you're driving under a medical suspension, you can face serious consequences. A suspended licence is a suspended licence, no matter the reason.
For the first offence, you could be fined a minimum of $1,000 up to $5,000 and have your licence suspended for another six months, even after the medical suspension is lifted. Your vehicle will also be impounded immediately for seven days. Plus, there’s also the possibility of up to six months in jail.
On top of that, getting caught driving with a medically suspended licence could lead to higher insurance rates and even require you to get high-risk insurance. While your medical licence suspension doesn't go on your driving record, driving with a suspended licence will, and it will stay there permanently. Your car insurance company will see this on your medical record and adjust your insurance premiums accordingly due to your increased risk.
Driving while suspended and car insurance
Driving with a suspended licence in Ontario comes with serious consequences. You could face vehicle impoundment, hefty fines, possible jail time, and an extended suspension of your driving privileges. The costs can really add up, including fines, impound fees, and higher insurance rates.
What’s even worse is that driving with a suspended licence usually voids your insurance. This means your car insurance provider won’t cover any damages or injuries if you’re in an accident. You’d be personally responsible for paying for any property damage or medical expenses, including repairs to the other person’s vehicle, their medical bills, and compensation for pain and suffering. Despite being a no-fault insurance province, the other party could even sue you for damages (if your insurance was voided), leading to major financial strain. Without insurance, you’d have to cover all of these costs out of pocket, which could be financially devastating, especially if the accident is severe.
Get car insurance from BrokerLink today
If you have a medical condition that can affect your ability to drive, it's important to have the right types of coverage to make sure you're fully protected behind the wheel. Whether you want to add collision coverage or accident forgiveness for additional protection, our BrokerLink licensed insurance experts are also here to review your situation and make sure your coverage fits your needs.
You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.
Get an auto insurance quote [phone]
