Ask Anne Marie: Can an Auto Insurer Change Its Premium after My Policy Is Written Up?

A couple unloading the groceries from the back of their car to take into the house.

We frequently highlight questions sent to our resident insurance expert, Anne Marie Thomas. This week’s question is about what happens when mistakes are made on an auto insurance policy and caught early on by the insurer.

The question comes from Ana, who asks:

“I purchased insurance at one price but when I received my bill for the month it was $50 higher. When I called, my insurer told me the price changed because instead of putting down a 2021 vehicle on the policy, my car was listed as a 2020. I was never notified or sent a new contract with the adjustments made or new paperwork. Is this legal?”

There are many factors that affect your price for coverage and the vehicle you drive is one of them, and yes, model year may matter too. But can a pricing adjustment be made once the deal is locked in? Anne Marie explains:

“When mistakes or errors happen when a policy is written up, insurers are permitted an opportunity to right the wrong and make the necessary pricing adjustment if caught within a certain timeline. Under the statutory condition of an auto insurance policy in Ontario, the insurance company has 60 days to change the premium if the original quoted premium was based on incorrect information.”

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