Compare Quotes
HomeCar Insurance ResourcesUltimate Guide: Car Insurance Renewal in Canada

Introduction and Basics

Car insurance is not just a legal requirement in Canada, but it’s also a way to protect yourself from potential financial calamities resulting from road accidents or other mishaps involving your vehicle. As your policy approaches its expiration, it’s important to consider renewing it. This guide aims to equip you with all you need to know about car insurance renewal in Canada.

  • Why renew your car insurance?
    • Legal requirement: Driving without valid insurance can result in hefty fines or even jail time.
    • Financial security: In case of an accident, insurance can cover damages and medical bills.
  • When to renew? Your policy expiry date is usually one year from the start date. It’s advised to begin the renewal process at least a month prior to this.

Steps to Renewing Car Insurance in Canada

  • 1. Review your current policy:
    • List the current coverages, limits, and deductibles.
    • Analyze if your needs have changed; maybe you’ve purchased a new car, your driving habits have altered, or your family has grown.
  • 2. Check for any discounts:
    • Combining policies, such as home and auto.
    • Good driver discounts.
    • Discounts for safety features in your car.
    • Loyalty discounts for staying with the same insurer.
  • 3. Get quotes:
    • Approach your current provider for a renewal quote.
    • Check with other providers to see if you can get a better deal.
    • Online comparison tools can be handy.
  • 4. Update your personal information:
    • Moved to a new address? New job or a change in daily commute? Make sure your insurer knows.
  • 5. Finalize and pay:
    • Once satisfied, agree on the terms, and make the payment.

Tips and Considerations


  • Understand the types of coverages:
    • Third-party liability: Covers damages caused by you to other people or their property.
    • Collision: Covers repairs to your car after an accident.
    • Comprehensive: Protects against damages not caused by a collision (e.g., theft or natural disasters).
  • Raising deductibles for lower premiums: If you can afford to pay a higher out-of-pocket cost during a claim, consider raising your deductible. This can reduce your premium.
  • Inquire about policy cancellations: Understand the implications if you choose to cancel your policy before its expiry.
  • Keep an eye on your driving record: A cleaner record can translate to lower premiums.
  • Check the policy’s fine print: Understand all terms and conditions, including exclusions.
  • Seek professional advice: Consider speaking with an insurance broker who can guide you to the best policy for your needs.


Renewing your car insurance in Canada is a systematic process that, with a bit of research and preparation, can ensure that you get the best possible deal for your needs. Regularly reviewing and updating your policy ensures that you’re adequately protected at all times. Safe driving!

Does my car insurance automatically renew?

In many cases, car insurance policies are set up to automatically renew at the end of the policy term, which is typically 12 months. However, this isn’t always the case, and the specifics depend on your insurer and the agreement you have with them.

Here’s what you need to know about automatic renewals:

  1. Notification: Insurance companies usually send a renewal notice a few weeks before your policy expires. This notice typically provides details about the premium for the next term, any changes to your coverage, and any updates to the policy terms and conditions.
  2. Payment: If you have set up an automatic payment method, such as a direct debit or credit card charge, the insurer may automatically collect the premium for the next term, thus renewing the policy.
  3. Changes to Premium: Even if your policy automatically renews, your premium might change based on several factors, including your driving record, changes in your personal situation, or general rate changes by the insurer.
  4. Opting Out: If you do not want your policy to automatically renew, you should contact your insurer before the renewal date and inform them. Some companies might require written notice.
  5. Review: Whether or not your policy automatically renews, it’s a good practice to review your coverage annually. This ensures that your coverage meets your current needs and that you’re getting a competitive rate.
  6. Cancellation by Insurer: In some cases, an insurance company might decide not to renew a policy, often due to multiple claims, traffic violations, or other risk-related factors. They are typically required to provide advance notice if they decide not to renew.
  7. Regulations: Insurance regulations can vary by province and territory in Canada. It’s essential to be familiar with the specific regulations that apply in your jurisdiction.

Can I drive on the day my insurance expires?

Mature Driver

In Canada, driving without valid insurance is illegal. If your insurance policy expires on a specific date, you’re covered up to 11:59:59 p.m. of that date. So, technically, you can drive on the day your insurance expires, but your coverage would end when the clock strikes midnight.

However, there are several important considerations to keep in mind:

  1. Risk of Lapse: If you happen to be out when your insurance expires and don’t return until after midnight, you’d be driving without insurance, which is illegal and can result in severe penalties, including hefty fines, vehicle impoundment, or even jail time in some cases.
  2. Accidents after Expiry: If you get into an accident after your coverage has expired, even if it’s just one minute past midnight, you would be personally responsible for all the costs associated with the accident. This can include damages to vehicles, property damage, medical bills, and potential legal fees.
  3. Renewal Delays: If you’re planning to renew with the same or a different insurer, there might be delays or complications in processing. It’s always a good idea to initiate the renewal process well before the expiry date to ensure continuous coverage.
  4. Driving Record Impact: Driving without insurance can negatively impact your driving record, making it challenging to secure future insurance at reasonable rates.
  5. Notification: Often, insurance companies will send a reminder or a notice about the upcoming expiry of your policy. It’s essential to keep an eye on such communications and act promptly.

Recommendation: It’s advisable not to push your insurance coverage to the last minute. If your insurance is about to expire, ensure you have a new policy in place before the current one ends. If there’s any uncertainty about when your new coverage begins, it’s best to avoid driving until you’re sure you’re insured.

Why won’t my insurance company renew my policy?

There are several reasons why an insurance company might choose not to renew a policy. Here are some common reasons specific to car insurance:

  1. Multiple Claims: If you’ve filed several claims within a short period, the insurance company may view you as a high-risk driver. Frequent claims suggest a higher probability of future claims.
  2. Traffic Violations: Accruing multiple traffic tickets or serious violations like DUIs can make you a high-risk driver in the eyes of the insurer.
  3. License Suspension: If your driver’s license has been suspended or revoked, it’s an obvious red flag for insurers.
  4. Policy Non-compliance: If you haven’t adhered to the terms and conditions of your policy, such as not reporting an accident or providing false information during the claim process, your insurer might opt not to renew your policy.
  5. Non-payment: Failing to pay your premiums on time or having multiple late payments can lead to non-renewal.
  6. Change in the Insurer’s Business Strategy: Sometimes, insurers change their underwriting criteria or business models. They may decide to stop insuring certain types of vehicles, or they may pull out of specific regions or markets.
  7. Fraud: If you’ve been caught committing insurance fraud or if the insurance company has reason to believe you’ve been dishonest, they will likely not renew your policy.
  8. Vehicle Condition: If your vehicle is in poor condition or is deemed unsafe and you fail to make the recommended repairs, the insurer may decide not to renew your policy.
  9. Age of Vehicle: Some insurers might not offer coverage for older vehicles, especially if the cost to repair in the event of a claim might be higher than the vehicle’s value.
  10. Insufficient Information: If the insurance company feels they don’t have enough information about you or your driving habits, they might opt not to renew.

Insurance companies are in the business of assessing and managing risk. If something about your profile or history suggests an increased risk that the insurer isn’t comfortable with, they might choose not to renew your policy.

In most jurisdictions in Canada, insurance companies are required to give you notice in advance if they decide not to renew your policy. If you find yourself in this situation, it’s advisable to shop around with different insurers or consider consulting with an insurance broker who can help you find an appropriate policy.

How does car insurance renewal work in Ontario


Car insurance is mandatory in Ontario, and policyholders must renew their coverage periodically, usually annually. When it’s time for renewal, understanding the process and being aware of certain aspects can help you make an informed decision.

Here’s a step-by-step guide to car insurance renewal in Ontario:

1. Renewal Notice:

  • Typically, a few weeks before your policy expires, your insurer will send a renewal notice. This notice will include details about your premium for the upcoming term, any changes to your coverage, and updates to the policy terms and conditions.
  • Review this notice carefully, comparing the new premium with your current one and noting any other changes.

2. Evaluate Your Needs:

  • Has there been a change in your driving habits, like working from home and driving less?
  • Have you purchased a new vehicle or sold one?
  • Any change in drivers within your household?
  • Adjust your policy based on such changes.

3. Shop Around:

  • If your premium has increased or if you’re just curious whether you’re getting the best deal, get quotes from other providers.
  • Online comparison tools can be helpful. However, always make sure you’re comparing apples to apples in terms of coverage.

4. Discounts:

  • Ask your insurer about potential discounts:
    • Multi-vehicle or multi-policy discounts.
    • Good driver discounts based on your driving record.
    • Discounts for winter tires (since it’s a requirement for some insurers in Ontario for a discount).
    • Discounts for security devices or driving courses.

5. Update Information:

  • Inform your insurer of any changes:
    • Change in address.
    • Vehicle modifications.
    • Change in usage of the vehicle.

6. Decision Time:

  • If you’re happy with the renewal terms and premium, you can accept the renewal.
  • If not, this is the time to switch to a new provider. Ensure there’s no gap in coverage when switching.

7. Payment:

  • Most insurers in Ontario offer various payment options, including monthly payments, quarterly, or annually. Some might offer discounts for paying the premium upfront.

8. Policy Documents:

  • Once renewed, you’ll receive a new proof of insurance (often called a “pink card”). Always keep this with you when driving.

9. Non-Renewal by Insurer:

  • Insurers can decide not to renew a policy for reasons like multiple claims or traffic violations. They must provide a written notice at least 60 days before the policy expiration. If you disagree with the non-renewal, you can contact the insurer’s complaint officer or the Financial Services Regulatory Authority of Ontario (FSRA) for assistance.

Tip: Ontario has a “no-fault” car insurance system, meaning regardless of who’s at fault in an accident, everyone deals with their own insurance company. However, being at fault can affect your premiums, so always strive to drive safely.

Always remember, the renewal period is an excellent opportunity to reassess your coverage needs and ensure you’re getting the best value for your money.

About the Author: Valerie D. Hahn

Valerie is an insurance editor, journalist, and business professional at RateLab. She has more than 15 years of experience in personal financial products. She strives to educate readers and ensure that they are properly protected.

Leave A Comment

Continue Reading