Alberta Demerit Points and How They Affect Your Car Insurance

Many drivers in Calgary and throughout Alberta are aware of “Demerit Points”, these are points against your driver’s license resulting from poor driving habits. When it comes to car insurance, there are various traffic and driving violations that will affect your driving history and may affect your car insurance.

What demerits equates to points against driving history?

For new drivers as well as experienced drivers, many people are unaware of what offences affect your driving history. Demerits are points against your driving history resulting from traffic and driving violations such as:

• Speeding
• Distracted driving
• Failing to stop at a stop sign
• Making an unsafe lane change
• Not obeying traffic signs
• Failing to remain at the scene of an accident
• Careless driving
• Failing to stop, and provide information to a police officer
• And many more!

Transport Canada clearly states what offences are and how many points each offence incurs. There are several driving offenses that affect your driving history and various offenses have different points.

  •  These points accumulate over time, for example, if you acquire between 8-14 demerit points within 24 months you will receive a letter informing you of your offences and points acquired.
  • If a driver has more than 15 demerits within a 24 month period, your license will be suspended for a given amount of time.
  • For new drivers enrolled in the Graduated Driver’s Program, there are stricter driving restrictions, therefore if a new driver acquires between 4-7 points within a 24-month period you will receive a warning letter indicating offenses and points acquired.
  • If a new driver is involved in 8 or more driving violations within 24 months, your license will be suspended for a given amount of time.

How do demerits affect my insurance premiums?

Insurance company’s asses each driver’s car insurance premium based on many variables, however, a driver’s history is one of them. If a driver has a poor driving history, they are deemed a higher risk to cause an accident than someone who has none or low demerit points. Therefore, insurance companies may charge a higher premium or they may choose not to provide insurance to that driver at all.

Another way demerits affect your insurance is when your license is revoked. If you have a suspended license you cannot purchase insurance. It is illegal to drive a vehicle without a valid driver’s license and insurance.

There are many reasons why having a clean and a safe driving history is important. It’s always a good idea to ensure you follow safe driving habits and rules. Many drivers experience the odd traffic violation ticket, but it goes to show how drivers with poor driving habits will pay for their unsafe driving.

Do you need more information or an updated quote for auto insurance? Contact us at Beneficial Insurance Solutions today.