If you are paying monthly, your previous insurance company may access your account for one last payment or partial payment.
Be Careful: If you do not make that payment, your policy will be labeled “cancelled for non-payment of premium”, which will affect your insurance rate with your new company.
Can My Insurance Company “FIRE” Me?
Your insurance company can cancel your policy for misrepresentation, like not telling the truth, or for any violation of the “statutory conditions”. These conditions are clearly outlined in your policy. Here’s a copy of the insurance policy. Some cancellation conditions include NOT notifying your insurance company about:
- new drivers in your household
- change in the use of your vehicle or the distance you commute to work
- driving or allowing your car to be used for racing
- driving or allowing your car to be driven while the driver is impaired
RED ALERT: A Company Can Cancel YOU Without Listing Their Conditions
All insurance companies have their “OWN RULES”, which have been approved by the provincial government. Yet, that doesn’t mean they’ve had to tell you about them. In fact, companies have at least forty or fifty filed reasons to cancel your policy, all different, and most are NOT listed in your policy. We usually find out about them when it’s too late.
Your driving record can trigger a cancellation or non-renewal for the following:
- two at fault accidents in six years
- one at fault accident and two or more tickets
- three tickets (combination of minor and major)
- a driving-related Criminal Code conviction
- a “major” ticket, such as passing a school bus when not allowed to do so
- a combination of an accident, ticket, or cancellation of policy in the last 3 years for a non-payment of premium
- two “minor” tickets where the driver has been licensed less than four years
Here are some other examples:
- driving your car out of province for over 30 days
- your car being driven by an excluded or unlicensed driver
- if a driver has been convicted of insurance fraud
- making a false statement in a claim
Which Conditions Can Cancel Me?
Ask your agent or broker which conditions your insurance company can use to cancel you. If you get cancelled, you will be driven to a high risk insurance company, and your rate
If your policy has been in force for less than 60 days, the insurance company can only cancel your policy if the reason has been filed with the provincial government. After 60 days, they can cancel you for non-payment, not notifying them of a change of risk, giving false information, or not giving all information required.
How Do I Know If I’m Being Given The Axe?
The insurance company must cancel you by hand-delivering a note giving you five days cancellation notice. Or by mailing you a notice of cancellation, giving you 15 days notice. The 15 days start on the day after the notice has been received by the post office which delivers your mail.
Note: Don’t think that if they can’t find you, they can’t cancel. The insurance company will send you a registered letter to your last known address and whether it’s deliverable or not, their responsibility stops there and the cancellation proceeds.
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