Yes, a license suspension will affect your insurance — usually by raising your rates or causing cancellation
When your license is suspended in Ontario, your insurance company will find out, and most will either raise your premiums significantly or cancel your policy outright. A suspension signals to insurers that you are a higher-risk driver — whether the suspension came from unpaid traffic tickets, a criminal conviction, medical reasons, or accumulated demerit points. The exact impact depends on why your license was suspended, how long the suspension lasts, and which insurance company you have.
The key thing to understand is that you cannot legally drive during a suspension, and you cannot legally hold an active auto insurance policy while driving without a valid license. If you do drive, you have no coverage — your insurer can deny any claim. This is why some people let their policies lapse during a suspension, then face higher rates when they reapply after the suspension ends.
Key Takeaways
- Most Ontario insurers will cancel or non-renew your policy once they learn your license is suspended, or will charge you significantly higher premiums to keep you insured.
- You cannot legally drive during a suspension, and any claim you file while driving without a valid license will be denied by your insurer.
- The reason for your suspension matters: criminal convictions and impaired-driving suspensions carry much steeper rate increases than administrative suspensions for unpaid fines.
- If your policy lapses during the suspension, you will face a "lapsed insurance" penalty when you reapply, which can last three to five years.
- Some insurers specialize in high-risk drivers and will insure you during or when ready after a suspension, though at higher cost.
Why insurers care about license suspensions
Insurance companies use your driving record to predict the likelihood you will file a claim. A suspended license is a red flag because it means a government body has already decided you are unsafe or non-compliant. From the insurer's perspective, you have already proven you are riskier than the average driver.
Ontario's Ministry of Transportation (MTO) suspends licenses for several reasons: unpaid traffic fines, accumulation of demerit points (15 or more within two years), criminal convictions related to driving, medical reasons, or failure to appear in court. Each reason carries different weight with insurers. A suspension for unpaid fines is seen as less risky than a suspension for impaired driving or a criminal conviction.
What happens to your policy when your license is suspended
Most insurers will contact you once they discover your suspension — they check the MTO database regularly or learn about it when you renew. At that point, you have a few possible outcomes. Your insurer may cancel your policy when ready, may offer to continue coverage at a much higher rate, or may non-renew you at the end of your current term.
Some insurers will not insure anyone with a current suspension at any price. Others will keep you on the policy but charge you a suspension surcharge — often 25 to 50 percent above your normal premium, sometimes more. A few insurers specialize in high-risk drivers and will take you on, but again at elevated rates.
If your insurer cancels your policy, you lose coverage when ready. If you continue to drive — which is illegal — you have no insurance protection. Any accident, injury, or damage you cause becomes your personal liability, and any damage to your own car is uninsured.
The difference between suspension types and insurance impact
Not all suspensions are treated equally by insurers. The reason your license was suspended shapes how much your rates will rise and how long the impact will last.
| Type of Suspension | Typical Insurer Response | Rate Impact |
|---|---|---|
| Unpaid fines or administrative | Non-renewal or modest surcharge | 15–30% increase, or cancellation |
| Demerit point accumulation | Surcharge or non-renewal | 20–40% increase |
| Impaired driving (Criminal Code) | Cancellation or very high surcharge | 50–100%+ increase, often 3–5 years |
| Criminal conviction (dangerous operation, etc.) | Cancellation or very high surcharge | 50–100%+ increase, often 3–5 years |
| Medical suspension | Depends on condition; often non-renewal | Varies; may require medical clearance to reinstate |
Impaired-driving and criminal-conviction suspensions are the most serious from an insurance standpoint. These suspensions often last one year or longer, and the rate increases can persist for three to five years after your license is restored. Some insurers will straightforward refuse to insure you at all during this period.
What happens when your suspension ends
Once your suspension period is over and your license is restored by the MTO, you can legally drive again. However, your insurance situation does not automatically reset. If your policy was cancelled, you will need to find a new insurer and reapply. If your policy was non-renewed, you cannot return to your old insurer at the end of the term.
When you explore for new insurance after a suspension, insurers will see the suspension on your driving record. The impact depends on how long ago it ended. A suspension that ended six months ago will affect your rates more than one that ended three years ago. Most insurers consider a suspension "resolved" after three to five years, though some will still factor it in longer.
If your policy lapsed entirely during the suspension — meaning you had no coverage for any period — you will also face a "lapsed insurance" penalty. Ontario insurers penalize drivers who have been uninsured, even if the lapse was necessary because you could not legally drive. This penalty can add 10 to 25 percent to your premiums for three to five years.
Finding insurance during or after a suspension
If you need to insure a vehicle during a suspension — for example, if someone else in your household drives it, or if you are appealing the suspension — you can still get coverage, but your options are limited. Standard insurers will decline you. Instead, you will need to contact high-risk or non-standard insurers. In Ontario, companies like Facility Association (a pool of insurers that must accept high-risk drivers) can provide coverage, though at significantly higher cost.
After your suspension ends, start by contacting your previous insurer to ask whether they will take you back. Many will not. Next, contact a broker who works with multiple insurers, because brokers often have relationships with companies that specialize in post-suspension drivers. Be honest about the suspension and its reason — insurers will find out anyway, and dishonesty can lead to claim denial.
Rates will be higher than they were before the suspension, but they will gradually decrease as time passes and you maintain a clean record. Staying claim-free and ticket-free after your suspension ends is the fastest way to bring your premiums back down.
Steps to take if your license is suspended
If you receive notice of a suspension, contact your insurer when ready — do not wait for them to find out. Explain the situation and ask what options you have. Some insurers will work with you if you reach out first, rather than if they discover it on their own.
If your insurer cancels or non-renews you, get that decision in writing. You will need proof of the cancellation date for your records. Do not drive during the suspension, even if you have coverage elsewhere — driving with a suspended license is a criminal offense in Ontario and carries fines, jail time, and a longer suspension.
If you believe the suspension is wrong, you can request a review or appeal through the MTO. Contact the MTO directly to understand the grounds for your suspension and what steps you can take. Some suspensions can be lifted early if you meet certain conditions — for example, paying outstanding fines or completing a remedial program.
Frequently Asked Questions
Can I keep my insurance if my license is suspended?
Most insurers will cancel or non-renew your policy once they learn about a suspension. Some may offer to keep you insured at a much higher rate, but you cannot legally drive during the suspension anyway. If you do drive, your coverage is void and any claim will be denied.
Will my rates go back to normal after the suspension ends?
No, not when ready. Rates will be higher for three to five years after the suspension ends, depending on the reason for the suspension and your insurer's policy. Impaired-driving and criminal-conviction suspensions carry longer rate penalties than administrative suspensions. Staying claim-free and ticket-free will help your rates decrease over time.
What if I let my insurance lapse during the suspension?
You will face a "lapsed insurance" penalty when you reapply after the suspension ends. This penalty can add 10 to 25 percent to your premiums for three to five years, on top of the suspension surcharge. It is better to keep your policy active if possible, even at a higher rate, to avoid this additional penalty.
Can I insure someone else's car if my license is suspended?
No. If you are the primary driver or a regular driver of a vehicle, insurers will see your suspension and either cancel the policy or charge a surcharge. If another household member is the primary driver and you are not listed as a driver, the policy may continue, but you cannot legally drive that car during your suspension.
How do I find insurance after my suspension ends?
Contact a broker who works with multiple insurers, as they often have relationships with companies that insure post-suspension drivers. Be honest about the suspension and its reason. Rates will be higher than before, but will gradually decrease as you maintain a clean driving record.