How a Distracted Driving Conviction Affects Commercial Auto Insurance

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What Is Distracted Driving?

According to the Royal Canadian Mounted Police, distracted driving is when a diver’s attention is not focused on driving because of other actions they’re doing, such as:

• Texting or reading emails
• Engaging in phone calls with a handheld device
• Using a laptop or tablet computer
• Eating, drinking, smoking, or vaping
• Playing with the radio or infotainment system on a vehicle’s dashboard
• Entering or reading information on a handheld GPS device
• Talking to passengers

Even when you are stopped in traffic or at a red light, in almost all provinces, it is illegal to:

• Use a mobile phone or other handheld wireless device unless you’re calling 9-1-1 because of an emergency
• Use a handheld device such as a tablet computer or portable gaming console
• View screens unrelated to driving, like watching a video
• Program a GPS device except by voice command

However, using a hands-free wireless device with an earpiece, lapel button, or Bluetooth is legal while driving. It’s also legal to view a GPS display screen built into your vehicle’s dashboard or a portable GPS securely mounted on your car’s dashboard.

Why Is Distracted Driving So Dangerous?

Driving a motor vehicle is one of the most dangerous things most people will ever do. Distracted driving is one of the greatest threats to road safety, and it goes against the norms of defensive driving. Distracted driving is considered to be as hazardous as driving while impaired.  

When a driver is not giving their undivided attention to driving, it can lead to a collision with other motorists, pedestrians, or stationary objects because a distracted driver’s reaction times are slower, and they may not respond quickly enough to a sudden change in traffic conditions, such as another vehicle suddenly stopping in front of them.

Furthermore, when your eyes and mind aren’t focused on the road, and both hands aren’t on the steering wheel, you’re at a greater risk of getting into an accident.

According to data, distracted driving is one of the leading causes of collisions, injuries, and deaths on Canadian roads, and drivers who use their cellphones while driving are four times more likely to be in a collision. Moreover, data from Transport Canada’s National Collision Database states that distracted driving contributed to an estimated 22.5% of fatal collisions and 25.5% of serious injury collisions in 2021.

What Are the Penalties and Fines for a Distracted Driving Conviction?

Let’s delve into the specific fines and penalties for a distracted driving conviction in each province, so you can fully understand the severity of the consequences:

• Alberta

  • A $300 fine and three demerit points for each offence

• British Columbia

  • A $368 fine for every distracted driving ticket and four penalty or demerit points

• Manitoba

  • For a first offence: A $672 fine and three-day licence suspension
  • For subsequent offences: A $672 fine, seven-day licence suspension, and you’ll be moved five levels down on the province’s driver safety rating scale (the equivalent of receiving five demerit points)

• New Brunswick

  • A $340.50 fine, three-day licence suspension, and five demerit points for each offence

• Newfoundland and Labrador

  • For a first offence: A $300 to $500 fine and four demerit points 
  • For a second offence: A $500 to $750 fine and four demerit points
  • For third and subsequent offences: A $750 to $1,300 fine and four demerit points

• Nova Scotia

  • For a first offence: A $176.45 to $233.95 fine, three-day licence suspension, and four demerit points
  • For a second offence: A $348.95 fine, seven-day licence suspension, and four demerit points
  • For subsequent offences: A $578.95 fine, 30-day licence suspension, and four demerit points 

• Ontario

  • For a first offence: $615 to $1,000 fine, three-day licence suspension, three demerit points
  • For a second offence: $615 to $2,000 fine, seven-day licence suspension, six demerit points
  • For subsequent offences: $615 to $3,000 fine, a 30-day licence suspension, six demerit points

• Prince Edward Island

  •  A fine of $575 to $1,275 per conviction and five demerit points for each offence

• Quebec

  • For a first offence: A $300 to $600 fine, three-day licence suspension, five demerit points
  • For a second offence: A $600 fine, seven-day licence suspension, five demerit points
  • For subsequent offences: A $600 fine, 30-day licence suspension, five demerit points

• Saskatchewan

  • For a first offence: A $580 fine and four demerit points
  • For a second offence: A $1,400 fine, seven-day vehicle seizure, four demerit points
  • For a third offence: A $2,100 fine, seven-day vehicle seizure, four demerit points

To clarify, a demerit point is a penalty reflected on your driving record or abstract. Insurance companies review your driving and claim history through AutoPlus when determining whether or not to offer you a commercial auto policy and how much your premium will be.

How Does a Distracted Driving Conviction Affect Commercial Auto Insurance?

Distracted driving convictions and demerit points will lead to a higher commercial auto insurance premium. Your insurer may decide to cancel your policy because they may regard you as a high-risk driver. This means you’ll have to find a new insurer, and they may charge you significantly more for a policy due to your distracted driving history.

Furthermore, getting a commercial auto policy from another insurer may be difficult if your insurance is cancelled because of a distracted driving conviction. If an insurer is willing to offer you a policy, the premium will be significantly more expensive.

What to Do If Your Commercial Auto Policy Is Cancelled Due to Distracted Driving

If your insurer cancels your commercial auto insurance policy because of a distracted driving conviction, here are a few steps you can take:

• Get an insurance broker’s help: To avoid a gap in your coverage after your policy is cancelled, contact a business insurance broker immediately for help securing a new policy. You should expect to pay a higher premium since insurers regard distracted driving convictions as significant offences that make you a high-risk driver.

• Establish strict driving policies: If your small business has several drivers, establish a strict company policy that prohibits all forms of distracted driving (this should be done regardless of distracted driving convictions). There are things you can do to help employees avoid distracted driving, such as installing hands-free technology in company vehicles, training your drivers, and ensuring they understand there are consequences if convicted of the offence.

• Contact the Faculty Association: The Faculty Association (FA) is a non-profit association of Canadian insurers. It operates in six provinces (excluding B.C., Manitoba, Quebec, and Saskatchewan) and is considered a last resort option for high-risk drivers needing commercial auto insurance. The FA insures high-risk drivers with poor driving records and those deemed high-risk because of the type of vehicle or cargo they haul – for example, a truck driver with a clean driving record hauling radioactive materials.

Tips for Avoiding Distracted Driving

Avoiding being a distracted driver is not difficult. Transport Canada and the Insurance Bureau of Canada recommend the following:

• Keep your mobile phone out of reach while driving, even when stopped in traffic or at a traffic light
• Refrain from sending text messages, emails, and browsing the internet
• Set your GPS before you begin driving
• Don’t use any device that takes your attention away from driving, including changing the settings on a navigation system or browsing the menu on your vehicle’s infotainment system
• Keep your eyes on the road at all times
• If something inside the cabin of your vehicle falls to the floor, leave it and pick it up after parking
• Don’t eat, smoke, or vape while driving
• Adjust your seat and climate controls before driving

If you have to respond to an email, text, or phone call, it’s recommended to pull over to a safe spot, park, and then use your phone.

How to Get Low-Cost Commercial Auto Insurance

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– Reviewed by Yassin Elsayed, Senior Team Lead, Contractors, and Aharshan Thangarasa, Senior Team Lead, Digital Solutions, Zensurance.