A suspended license will likely increase your insurance costs or cause your insurer to cancel your policy
When your Ontario driver's license is suspended, your insurance company will almost certainly find out — and your rates will go up or your coverage will end. Insurance companies run periodic checks against the Ministry of Transportation (MTO) database, and a suspension is a public record. Most insurers treat a suspension as a material change in your driving status that you are required to report within days of it happening. If you do not report it and your insurer discovers it later, they can cancel your policy retroactively, leaving you uninsured for any accidents that occurred during the suspension period.
The exact consequence depends on why your license was suspended, how long the suspension lasts, and your insurer's specific rules. A suspension for unpaid fines carries less weight than one for impaired driving or stacking too many demerit points. Some insurers will straightforward refuse to renew your policy when the suspension ends. Others will renew but at a significantly higher rate — sometimes 25 to 50 percent above your current premium, though this varies widely. A few insurers specialize in high-risk drivers and will continue coverage during a suspension, but at a steep cost.
Key Takeaways
- You must report a license suspension to your insurance company within the timeframe stated in your policy — usually within 7 to 10 days — or risk having your coverage cancelled retroactively.
- Insurance companies check the MTO database regularly, so hiding a suspension will likely be discovered and used as grounds for cancellation or non-renewal.
- A suspension for impaired driving, stacking demerit points, or unpaid fines each carry different weight with insurers, and impaired suspensions typically result in the largest rate increases or outright refusal to cover you.
- Once your suspension ends and your license is reinstated, you may still face higher premiums for three to five years, depending on the reason for the suspension.
- Some insurers will not cover you at all during an active suspension, while others will continue coverage at a much higher rate; calling your insurer when ready after suspension is critical.
Why insurers care about license suspensions
A suspended license is a red flag to insurers because it signals that you have violated Ontario's traffic laws or failed to meet financial obligations tied to driving. The MTO suspends licenses for specific reasons: accumulating too many demerit points (15 or more within two years), driving under the influence, failing to pay fines or court-ordered restitution, failing a medical or vision test, or driving without insurance. Each reason tells an insurer something different about your risk as a driver.
From the insurer's perspective, a suspension means you are legally prohibited from driving. If you are involved in an accident while your license is suspended, you are committing a criminal offense (driving while suspended), and your insurer may refuse to pay the claim on the grounds that you were breaking the law. This exposure is why insurers treat suspensions so seriously. They also use suspensions as a data point in their overall assessment of you: someone who accumulated 15 demerit points in two years has demonstrated a pattern of traffic violations, and someone who drove impaired has shown extremely poor judgment.
What happens when ready after suspension
The moment your license is suspended, you are legally prohibited from driving in Ontario. You will receive a notice from the MTO explaining the suspension, its duration, and the conditions for reinstatement. You must contact your insurance company as soon as you receive this notice — do not wait. Your policy likely contains a clause requiring you to report any change in your driving status within a specific number of days, often 7 to 10 days. Failure to report within that window gives your insurer grounds to cancel your policy.
When you call, be direct: tell your insurer that your license has been suspended, provide the date the suspension began, and ask what options are available to you. Some insurers will when ready cancel your policy. Others will place your policy on "non-driving" status, which means you are still insured for liability if someone else drives your car (with your permission) but you are not covered for any accident you cause while driving. Non-driving status typically costs less than your regular premium but is not a discount — it is a restricted form of coverage. A third group of insurers will continue your full coverage but at a substantially higher rate.
How suspension type affects your insurance outcome
Not all suspensions carry equal weight. A suspension for unpaid fines or court-ordered restitution is treated as a financial issue rather than a driving behavior issue. Insurers view this as serious — it shows you did not meet a legal obligation — but it does not directly indicate unsafe driving. You may face a rate increase of 10 to 20 percent, or your insurer may straightforward decline to renew your policy when it comes up for renewal.
A suspension for accumulating demerit points (15 or more within two years) signals a pattern of traffic violations: speeding, careless driving, failing to yield, or similar infractions. This is a direct measure of unsafe driving behavior. Insurers typically increase rates by 25 to 40 percent for this type of suspension, and some will not renew your policy at all.
A suspension for impaired driving (driving under the influence of alcohol or drugs) is treated as the most serious category. This suspension can last from one year to a lifetime, depending on whether it is your first offense and whether you caused an accident. Insurers almost universally refuse to cover drivers with an active impaired suspension. If you do find an insurer willing to cover you, the premium will be 50 to 100 percent higher than your current rate, and you may be required to install an ignition interlock device at your own cost. Some insurers will not cover you again for five to ten years after an impaired suspension ends.
Driving without insurance during a suspension
You cannot legally drive in Ontario without insurance, and you cannot legally drive while your license is suspended. If you are caught driving while suspended, you face a fine of $1,000 to $50,000 and possible jail time, depending on the circumstances. If you are involved in an accident while driving suspended and uninsured, you are personally liable for all damages, and your insurer will not pay.
Some people attempt to keep their insurance active during a suspension by not reporting it to their insurer. This is insurance fraud. When an insurer discovers the suspension — and they almost always do, through MTO database checks — they will cancel your policy retroactively. This means any accidents you were involved in during the suspension period are now your financial responsibility, not the insurer's. You could face a lawsuit from the other party, and your insurer could pursue you for the cost of any claims they paid out before discovering the suspension.
Reinstating your license and your insurance
The process for reinstating your license depends on the reason for suspension. For demerit point suspensions, you must wait out the suspension period (usually 6 to 12 months) and then explore for reinstatement through the MTO. For impaired driving suspensions, you may need to complete a remedial program, pass a medical exam, and pay a reinstatement fee. For unpaid fines, you must pay the outstanding amount. Once your license is reinstated, you can contact your insurer about resuming full coverage.
However, reinstatement of your license does not automatically mean your insurance rates will return to normal. Insurers track suspension history for three to five years after reinstatement. If your suspension was for impaired driving, some insurers will not cover you at all for five to ten years, even after your license is reinstated. If your suspension was for demerit points, you may face elevated rates for three to five years. If it was for unpaid fines, the impact is typically shorter — one to three years. You will likely need to shop around for a new insurer, as your current insurer may decline to renew you even after your license is reinstated.
Finding insurance after a suspension
If your insurer cancels your policy or declines to renew you after a suspension, you have options. Some insurers specialize in high-risk drivers and will cover you during or after a suspension, though at a premium cost. You can contact your current insurer's high-risk division, or you can work with an insurance broker who has relationships with multiple high-risk insurers. A broker can shop your file across several companies and find you the best available rate.
You can also contact the Insurance Bureau of Canada (IBC) or Intact Insurance's Facility Association, which is a last-resort insurer for drivers who cannot find coverage elsewhere. The Facility Association will cover you, but the rates are typically the highest available in the market. Using the Facility Association should be a temporary measure while you work to improve your driving record and become insurable at standard rates again.
Frequently Asked Questions
Do I have to tell my insurance company about my suspension?
Yes. Your policy requires you to report any change in your driving status, including a suspension, within a specific timeframe — usually 7 to 10 days. If you do not report it and your insurer finds out later, they can cancel your policy retroactively, leaving you uninsured for any accidents during the suspension period.
Can I drive with a suspended license if I have insurance?
No. A suspended license means you are legally prohibited from driving, regardless of whether you have insurance. Driving while suspended is a criminal offense. If you are caught, you face fines up to $50,000 and possible jail time. If you cause an accident, your insurer will not pay because you were breaking the law.
Will my insurance rates go back to normal after my suspension ends?
Not when ready. After your license is reinstated, insurers typically keep your rates elevated for three to five years, depending on the reason for the suspension. Impaired driving suspensions result in the longest impact — some insurers will not cover you at all for five to ten years after reinstatement.
What if my insurer cancels my policy because of the suspension?
You can contact your insurer's high-risk division, work with an insurance broker who specializes in high-risk drivers, or explore through the Facility Association, which is a last-resort insurer. Rates through these channels will be higher, but coverage will be available to you.
Does a suspension show up on my driving record permanently?
A suspension remains on your MTO driving record for a set period depending on the reason. Demerit point suspensions typically stay on your record for two years after reinstatement. Impaired driving convictions remain on your record for life, though the impact on insurance rates typically decreases after five to ten years.