Auto Insurance Renewals

Why is my auto insurance policy automatically renewing?

In Ontario, auto insurance companies have to offer renewal terms unless stated otherwise. Usually, you will receive copies of the renewal terms up to one month prior to the actual date of renewal. You then have time to decide whether to stay with your current insurer or start looking for other options. If you decide to change insurance providers it is then up to the consumer to advise their provider accordingly.

 

What if I don’t want to renew with my current insurance provider?

You will need to advise your insurance provider, in written form, of your intention to cancel. Every insurance policy declaration comes with a cancellation section that can be filled out and returned to your insurance broker for processing, or you can request a cancellation form from your broker. Without your consent to cancel, an insurance company will automatically renew your policy every year.

You can choose to cancel your insurance policy at any time however there may be cancellation fees associated with that and they are calculated by the insurance company based on the amount of time on risk.

 

When renewals are not offered

Auto insurance providers can non-renew clients who no longer meet their underwriting eligibility. Examples of this can be if a driver has too many at-fault claims within a certain time period or if a driver has too many convictions. If a client is being non-renewed the insurance company must provide this notice in writing within 45 days of the policy expiration date in order for the client to find alternative coverage.

 

Other reasons an insurance company may cancel your policy

As detailed the OAP 1 form (Ontario Automobile Form 1) if your auto insurance policy has been in effect for over 60 days an insurance company can choose to cancel your policy for any of the following reasons:

  • Non-Payment of insurance premium
  • Misrepresentation of facts or non-disclosed information during the application process. This can include details such as knowingly providing a false address of residence or false information about the vehicle being insured.
  • The risk has changed materially

More information about how and when an auto insurance policy can be canceled can be found through the FSCO website

 

If you have questions about your current insurance renewal or you are being non-renewed by your insurance provider and have questions, call and speak to your licensed insurance broker. They may be able to provide alternative quotes or recommend other insurance companies to contact – we may be one of them! Call us today at 1-877-454-4476 to speak with a broker to see if we can find a better auto insurance solution for you.

 

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