Kanetix
Car Insurance Forum

In 2009 my husband had a minor accident (not a large claim) while both our names were on our auto insurance policy. My husband does not drive any more (amputation) but I am being penalized on my auto insurance even though I have never had an accident or an insurance claim. Is this legal?

A friend, who is 10 years older than me is paying $200.00/yr less than me.

This is a fairly common practice in Canada. Basically, since your husband is no longer driving the vehicle that at-fault accident carries over to the vehicle it occurred on, or any replacing vehicle, this accident typically could effect your rates for 6 years or more from the time of the loss. This is the insurance companies way of recouping premium paid out on losses, regardless of the size of the loss, and regardless of who is driving the vehicle currently. The accident rating stays with the vehicle.

It is best to check around to see if every insurer will see your situation the same way.

Sean Graham, Principal Broker at KTX Insurance Brokers