Do Parking Tickets Affect Your Car Insurance Rates?

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Article Contents
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on October 7, 2024

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated October 7, 2024

Visit author page

3 minute read

Article Contents

Parking tickets are issued when a car is parked inappropriately. While they can lead to fines, some drivers also wonder if they can affect their car insurance premiums the way that speeding tickets or tickets for other violations do. This is because these violations make it riskier for car insurers to provide coverage to a driver and their vehicle.

Parking Tickets and Car Insurance at a Glance

  • Exceeding your parking meter time is one of the most common reasons for getting a parking ticket. In Toronto alone, 1.8 million parking tickets were issued in 2022, which has prompted the city to increase fines for parking violations this year.
  • Because parking tickets don’t go on your driving record, you don’t get demerit points for them.
  • If you believe you were unfairly issued a ticket, you can appeal it through a form or directly file a motion in court to contest if there was a violation correctly identified. Note that if you do the latter, you’ll need evidence to support your motion such as witness statements or photos of signs in the area.

Will parking tickets affect your auto insurance premiums? Learn more about how unpaid tickets may impact your premiums, what effect they have on your driving record, and how you can prevent getting them in the first place.

How Do Parking Tickets Affect Your Car Insurance Rates?

One of the most common misconceptions that Canadian drivers have about parking tickets is that they directly impact auto insurance premiums. This isn’t the case, but tickets do affect your driving record, which car insurers look at to determine the risk of insuring drivers and their vehicles. Here’s a more detailed explanation of how this works:

Parking tickets are non-moving violations:

Non-moving violations don’t reflect on your driving record the same way moving violations like speeding or reckless driving tickets do.

No direct impact on car insurance premiums:

Auto insurance companies typically don’t consider parking tickets when estimating your rates. This means you can receive multiple parking tickets without worrying about a premium increase.

If left unpaid, they can negatively affect your credit score:

Parking tickets don’t affect your credit score, but unpaid fines that go to collections can negatively impact your credit rating. Some Canadian auto insurers may look at your credit rating when determining your car insurance rates, so pay immediately to help keep your premiums affordable.

License renewal concerns:

Unpaid parking tickets can hamper your license renewal or license plate registration. If you have multiple unpaid tickets, you may even face additional penalties like towing and impounding until your fines and all associated expenses are cleared. 

Common Reasons Why Drivers Get Parking Tickets

Millions of tickets are issued annually in Canada for violations like parking in bike lanes and parking without paying. Here are some of the most common reasons why drivers get tickets:

Ignoring signs that indicate no-parking areas can lead to parking tickets and immediate hefty fines.

It’s common for drivers to lose track of time and fail to return to their vehicles before the meter expires.

Accessible parking spots are designated for persons with disabilities. Parking in these spots without the necessary documentation is not allowed.

Parking too closely next to fire hydrants is prohibited to ensure emergency services have fast access to water.

Tips for Preventing Parking Tickets

Even if they don’t affect your auto insurance, parking tickets can be a hassle to pay – and expensive, especially when you have multiple tickets accumulated. Avoid the stress and prevent getting tickets by following these simple tips:

Pay attention to signs:

Always read nearby signs carefully before parking. Check for no-parking signs and meter rules in the area.

Bring a lot of change and set an alarm:

Have enough coins ready to feed the meter and have an alarm on your phone or other smart device so you know when you need to go back to your car.

Use available tech solutions:

Some Canadian municipalities now offer apps where you can remotely pay for parking and extend your meter time. These apps even give notifications 10 minutes before your meter time is up so you don’t have to worry about overstaying by mistake. 

Double-check your payment details:

When using mobile payment solutions for parking, make sure you enter your license plate number to avoid mistakes that can result in delays and additional fees.

Key Advice from MyChoice

  • Note that most municipalities have a grace period (typically around 15 to 30 days) to pay parking tickets. Missing this grace period can lead to complications and additional fees, but in turn, some municipalities offer discounts for early payment. Pay ahead to save money and prevent late fees.
  • If you receive multiple parking tickets, keep a record of them and their due dates to avoid missing payments and incurring more penalties.
  • If you think a parking ticket was unfairly issued, most cities will allow you to dispute it within 14 days of receipt. You can fill out the Notice of Appeal form on the back of the ticket, then mail or deliver it along with a letter to the court to explain the situation. In some cases, you can at least get a fine reduction if you don’t get the ticket dismissed.

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