As an automobile owner in the province of Ontario, you are required to have auto insurance. Therefore there are laws that give us rights as an auto insurance consumer. In the province of Ontario, auto insurance is regulated by the Financial Services Commission of Ontario, an agency within the Ministry of Finance and there is an Auto Insurance Consumer’s Bill of Rights. As consumers we have options when and if an insurance company denies us coverage.

Auto Insurance Claim Denial What Next?

The denied driver may have been refused auto insurance coverage by an insurance company or agent if they have been determined to be a “high risk” based on the company’s underwriting rules. However, in the province of Ontario, the Insurance industry must provide a basic insurance option for any legal, valid licensed driver.

There is the possibility of finding certain insurers that specialize in “non-standard” or “high risk” policies and provide different underwriting rules or A denied driver may turn to The Facility Association which is an insurance pool all insurance companies belong to and is known as an insurer of last resort when the insurance applicant has been denied auto insurance coverage from regular market sources. You can get more information on the Facility Association from The Insurance Bureau of Canada.

Reasons for Being Refused Car Insurance


There are many reasons an insurance company may deny someone coverage. An insurance company will assess the risk involved and the possibility that they may have to pay out to you and/or a third party in the event of a claim. Insurance companies base these decisions on immense data and statistics drawn from many factors. Each company with adhere to their own underwriting rules and these rules must be filed with the FSCO.

Some examples of underwriting rules that may keep you from being covered are, if you or members of your household have had numerous driving convictions or at-fault accidents, if you have had previous insurance policy cancellations due to non-payment or other credit issues, if you have provided incorrect or incomplete information in the past when applying for auto insurance coverage.

The insurance company must inform you in writing of which rule or rules it has applied to deny coverage. Insurance companies may not deny insurance to you for any of the following reasons, credit history, physical or mental disability, where you live or where you keep your vehicle or whether you are a new driver or new to Canada.

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