Obtaining auto insurance after your policy has been cancelled can be a challenge, but it’s not impossible. Here’s what you need to know about getting car insurance in Canada, province by province:
- British Columbia: In BC, car insurance is mandatory, and it can be difficult to find coverage if your policy has been cancelled. However, you may be able to find coverage through the Insurance Corporation of British Columbia (ICBC), which provides insurance to high-risk drivers.
- Alberta: In Alberta, you have the option to purchase insurance from private insurance companies or through the Alberta Automobile Insurance Rate Board (AAIRB). If your policy has been cancelled, you may need to look into high-risk insurance options.
- Saskatchewan: In Saskatchewan, you must have car insurance if you plan to drive. The Saskatchewan Government Insurance (SGI) offers insurance to drivers who have had their policies cancelled.
- Manitoba: In Manitoba, you must have car insurance to legally drive. If your policy has been cancelled, you may need to look into high-risk insurance options or consider obtaining coverage through the Manitoba Public Insurance (MPI).
- Ontario: In Ontario, you must have car insurance to legally drive. If your policy has been cancelled, you may need to look into high-risk insurance options or consider obtaining coverage through the Facility Association, which provides insurance to drivers who are unable to find coverage through other insurance companies.
- Quebec: In Quebec, you must have car insurance to legally drive. If your policy has been cancelled, you may need to look into high-risk insurance options or consider obtaining coverage through the Societe de l’assurance automobile du Quebec (SAAQ).
- New Brunswick: In New Brunswick, you must have car insurance to legally drive. If your policy has been cancelled, you may need to look into high-risk insurance options or consider obtaining coverage through the New Brunswick Insurance Board (NBIB).
- Nova Scotia: In Nova Scotia, you must have car insurance to legally drive. If your policy has been cancelled, you may need to look into high-risk insurance options or consider obtaining coverage through the Insurance Corporation of Nova Scotia (ICNS).
- Prince Edward Island: In PEI, you must have car insurance to legally drive. If your policy has been cancelled, you may need to look into high-risk insurance options or consider obtaining coverage through the Prince Edward Island Automobile Insurance Services Corporation (PEIAISC).
- Newfoundland and Labrador: In Newfoundland and Labrador, you must have car insurance to legally drive. If your policy has been cancelled, you may need to look into high-risk insurance options or consider obtaining coverage through the Newfoundland and Labrador Automobile Insurance Corporation (NLAC).
Car Insurance Cancellation by the Driver
Car insurance cancellation by the driver refers to the process of ending a car insurance policy that has been initiated by the policyholder (the driver). This could be due to various reasons such as a change in the driver’s circumstances, finding a better insurance rate, or simply deciding to switch insurance companies. When a policyholder cancels their car insurance policy, they must follow the procedure outlined by the insurance company and pay any penalties or fees that may be associated with the cancellation. It’s important to ensure that there are no gaps in coverage and that the policyholder has adequate insurance coverage before cancelling their policy.
Car Insurance Cancellation by the Company
Car insurance cancellation by the company refers to the situation where an insurance company terminates a policy that has been purchased by the policyholder (the driver). This could be due to various reasons such as non-payment of premiums, fraud or misrepresentation on the policy application, or other policy violations.
When a policy is cancelled by the insurance company, the policyholder is usually given notice of the cancellation and the reason for it. The policyholder may also be required to pay any outstanding premiums or fees. It’s important for the policyholder to find alternative insurance coverage as soon as possible to avoid any gaps in coverage.
In some cases, the policyholder may dispute the cancellation and may have the right to appeal the decision. The policyholder should review the terms and conditions of their policy and contact their insurance company to find out their rights and options in the event of a cancellation.
How long does insurance cancellation stay on record Canada?
Here’s a summary of how long insurance cancellations stay on record in each province in Canada:
- Alberta: 3 years
- British Columbia: 6 years
- Manitoba: 3 years
- New Brunswick: 3 years
- Newfoundland and Labrador: 3 years
- Nova Scotia: 3 years
- Ontario: 6 years
- Prince Edward Island: 3 years
- Quebec: 3 years
- Saskatchewan: 3 years
It’s important to note that these are general guidelines, and the length of time that insurance cancellations stay on record can vary depending on the insurance company and the circumstances surrounding the cancellation. If you have specific questions about your insurance record, it’s best to contact your insurance company directly.
Car insurance rates after cancellation in Canada
After a car insurance cancellation, it may be more difficult to find coverage, and the rates offered by insurance providers may be higher than the rates for drivers who have maintained continuous insurance coverage. That said, here are some example car insurance rates after cancellation for sample drivers in major Canadian cities:
- Vancouver, British Columbia: For a 30-year-old male driver who has had their car insurance policy cancelled, the average annual cost for car insurance is around $3,500-$4,000.
- Calgary, Alberta: For a 40-year-old female driver who has had their car insurance policy cancelled, the average annual cost for car insurance is around $2,500-$3,000.
- Toronto, Ontario: For a 25-year-old male driver who has had their car insurance policy cancelled, the average annual cost for car insurance is around $4,500-$5,000.
- Montreal, Quebec: For a 35-year-old female driver who has had their car insurance policy cancelled, the average annual cost for car insurance is around $2,000-$2,500.
- Halifax, Nova Scotia: For a 45-year-old male driver who has had their car insurance policy cancelled, the average annual cost for car insurance is around $1,500-$2,000.
- Winnipeg, Manitoba: For a 30-year-old female driver who has had their car insurance policy cancelled, the average annual cost for car insurance is around $2,500-$3,000.
- Regina, Saskatchewan: For a 25-year-old male driver who has had their car insurance policy cancelled, the average annual cost for car insurance is around $2,500-$3,000.
- Edmonton, Alberta: For a 35-year-old female driver who has had their car insurance policy cancelled, the average annual cost for car insurance is around $3,000-$3,500.
It’s important to note that these are just example rates and individual rates may vary based on a number of factors, including the driver’s age, driving record, and the type of vehicle being insured. Additionally, these rates are specific to cancelled policies and may not reflect the rates for drivers who have maintained continuous insurance coverage.
Frequently asked questions about obtaining auto insurance after cancellation:
Here are some frequently asked questions about obtaining auto insurance after cancellation:
- Can I still get auto insurance after my policy has been cancelled? Yes, you can still get auto insurance after your policy has been cancelled. However, it may be more difficult to find coverage and the rates offered by insurance providers may be higher.
- Why was my auto insurance policy cancelled? Your auto insurance policy may have been cancelled for a number of reasons, including missed payments, a high number of claims, or a driving record that is considered high risk.
- Will my rates be higher if my auto insurance policy has been cancelled? Yes, your rates may be higher if your auto insurance policy has been cancelled. Insurance providers may view cancelled policies as an indicator of higher risk and may offer higher rates as a result.
- How can I find the best rates on auto insurance after cancellation? To find the best rates on auto insurance after cancellation, it’s important to shop around and compare quotes from different insurance providers. You may also want to consider factors such as the level of coverage and deductibles.
- How long will it take to obtain auto insurance after cancellation? The length of time it takes to obtain auto insurance after cancellation may vary based on a number of factors, including the insurance provider and the reasons for the cancellation. In some cases, it may be possible to obtain coverage immediately, while in others, you may need to wait until your driving record improves or until the cancellation is resolved.
- What should I do if I can’t find auto insurance after cancellation? If you’re having trouble finding auto insurance after cancellation, you may want to consider working with an insurance broker or agent who can help you find coverage. Additionally, you may want to consider options such as high-risk insurance or non-standard insurance.
- What is high-risk auto insurance? High-risk auto insurance is a type of coverage designed for drivers who are considered to be at a higher risk of getting into accidents or making claims. If your policy has been cancelled, you may be considered a high-risk driver and may need to seek out high-risk auto insurance.
- How can I improve my chances of getting approved for auto insurance after cancellation? To improve your chances of getting approved for auto insurance after cancellation, you may want to take steps to improve your driving record, such as completing a defensive driving course or practicing safe driving habits. Additionally, you may want to consider a higher deductible or more limited coverage options to reduce the overall risk for the insurance provider.
- Will I be required to pay a deposit when obtaining auto insurance after cancellation? In some cases, insurance providers may require a deposit or down payment when obtaining auto insurance after cancellation. This is often done to reduce the risk for the provider and may be refunded or applied to your premiums after a certain period of time.
- Should I disclose that I had a cancelled auto insurance policy when applying for new coverage? Yes, you should always disclose any previous cancellations or insurance-related issues when applying for new coverage. Failure to do so may result in denied claims or other issues down the line. It’s always best to be honest and upfront with your insurance provider.
- Can my cancelled auto insurance policy impact my credit score? Your cancelled auto insurance policy may not directly impact your credit score, but it could indirectly affect your credit rating if you owe unpaid premiums or have outstanding bills related to your policy. It’s important to pay any outstanding debts related to your cancelled policy to avoid negative impacts on your credit score.
- Can I still purchase collision or comprehensive coverage after a cancellation? It may be more difficult to purchase collision or comprehensive coverage after a cancellation, as these types of coverage may be seen as higher risk. However, it may still be possible to obtain this coverage with certain insurance providers or under certain circumstances.
- Should I seek out a specific type of insurance provider after a cancellation? You may want to consider working with an insurance provider that specializes in high-risk coverage or non-standard coverage after a cancellation. These providers may be more willing to offer coverage to drivers who have had their policies cancelled.
- Can my previous insurance provider deny coverage if I try to renew my policy after cancellation? Yes, your previous insurance provider may deny coverage if you try to renew your policy after a cancellation. It’s important to check with the provider to see if they are willing to offer coverage, and if not, to shop around for coverage from other providers.
- What should I do if I am still having trouble finding auto insurance after cancellation? If you are still having trouble finding auto insurance after cancellation, you may want to consider working with an insurance broker or agent who can help you find coverage. Additionally, you may want to explore high-risk insurance options or consider taking steps to improve your driving record.
- Can my cancellation impact my ability to get insurance in the future? Yes, a cancellation can impact your ability to get insurance in the future. Insurance providers may view a previous cancellation as an indicator of higher risk and may be less willing to offer coverage or may offer coverage at higher rates.
- What can I do to avoid a cancellation in the future? To avoid a cancellation in the future, it’s important to make sure you are up-to-date on your premium payments and to avoid making excessive claims or engaging in risky driving behavior. You may also want to consider increasing your deductible or changing your coverage options to reduce overall risk.
- Can I appeal a cancellation decision by my insurance provider? In some cases, you may be able to appeal a cancellation decision by your insurance provider. You should check with the provider to see what options are available.
- What types of insurance coverage are required by law in Canada? The types of insurance coverage required by law in Canada vary by province. Generally, however, drivers are required to have liability insurance coverage, which covers damages and injuries to other drivers in the event of an accident. Some provinces may also require additional coverage, such as accident benefits or uninsured motorist coverage.
- Should I work with an insurance broker or agent after a cancellation? Working with an insurance broker or agent after a cancellation can be a good way to find coverage, as these professionals can help you navigate the insurance market and find coverage that meets your needs. However, you should be prepared to pay a fee or commission for their services.
About the Author: Valerie D. Hahn
