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HomeCar Insurance CompaniesWhat is Facility Association Car Insurance?

It is mandatory to have active car insurance as per standard legal requirements in most Canadian provinces. You may pay a heavy penalty if you drive without active car insurance. Insurance companies calculate auto insurance premiums based on several factors such as claims history, driving record, vehicle profile, location, frequency of use, etc. When you have many claims over a short period of time, gaps in insurance coverage, driving violations on the record, accidents, default of payments, etc. this increases your insurability risk. Due to these factors, the insurers may class you in a high-risk category. This increases your insurance premiums manifold compared to others who are in a low-risk category. Insurance companies may also deny you coverage due to your high-risk category.

If you belong to the high-risk category for car insurance then you may approach the Facility Association for coverage. They will offer you coverage through the risk-sharing pool of insurance companies and also offer you insurance through the residual markets. You may not be denied coverage that is legally required in your province. They also administer the Uninsured Auto Funds as per legislation and authorization of the Board.

The FARM Facility Association Residual Market) Mechanism

The Facility Association has contracts with certain car insurance companies and designates them as Servicing Carriers. These insurance companies endorse and issues car insurance policies, collect premiums and adjust claims for Facility Association. Any losses they pay out as claims to the policyholders and fees for handling the policies are paid to them from the residual market pool. These insurance policies are subject to Facility Association rules, classification, and rate criteria and are regulated by the jurisdictions they serve in.

Risk Sharing Pool of Insurers

Risk Sharing

There are various risk-sharing pools in a few provinces for personal passenger vehicles. The provinces are Alberta, Ontario, New Brunswick, and Nova Scotia. The Facility Association administers these Risk-Sharing Pools and each has its own guidelines for eligibility of the risk. The insurance companies who are members of this pool underwrite the risks as per regulated maximum or normal premium rates. They may also transfer these risks to the pool or keep them on their own account. To apply for appointing a service carrier you may fill out an application on the website.

Uninsured Automobile Funds

The Facility Association adheres to the provincial acts in the respective provinces. They administer the uninsured automobile funds in 4 Atlantic Provinces. These include Newfoundland & Labrador, New Brunswick, Ontario, Nova Scotia, and Prince Edward Island. This fund helps to claim for insufficient damage settlement, those with no insurance coverage or have inadequate coverage. The province governs all such claims but the Facility Association settles claims, monitors investigation with law firm support.

Contact Methods For Facility Association Insurance

Phone: You may call 416.863.1750 or 1800.268.9572 to reach Facility Association.

Fax: The fax number to send your documents is 416.868.0894.

Mail: The mailing address for Facility Association is 777 Bay Street, Suite 2400 P.O. Box 121, Toronto, Ontario M5G 2C8.


We are not affiliated and make no representations, warranties, recommendations, or endorsements of Facility Association Insurance. This article is our review of Facility Association Insurance for information purposes only.  The logos, trademarks, and copyrights mentioned in this article belong to the Facility Association Insurance.

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