Can you get denied car insurance in Ontario?
Yes!
But wait… Hold up… Not so fast…
It’s not that easy.
Car insurance is mandatory in Ontario
First of all, car insurance is mandatory in Ontario thanks to the Compulsory Automobile Insurance Act (CAIA), and rightfully so.
Now, if car insurance is mandatory, how can an insurance company deny a policy to someone?
Underwriting rules
There are specific rules in place wherein an insurance company can deny a new policy or non-renew an existing policy. These rules are part of the insurance company’s underwriting manual and have to get approved by the Financial Services Commission of Ontario. For example, a specific company can have a rule that states that they will not insure, say, a driver with three minor tickets in a set time period, or one major ticket, or two at-fault accidents, or a rebuilt car, or a combination of factors, and so on.
If a driver hits one of the company’s specific rules, she will be denied a policy.
Now back to car insurance being mandatory in Ontario…
What the heck are you supposed to do when a car insurance company denies you a policy?
Simple… Call the next company. Not every insurance company has the same decline rules. For example, where one company might deny you a policy with 3 tickets, another might set the limit at 7, albeit at a higher premium. Then, if there are zero companies that are willing to insure you because your record is particularly bad, you can get insured with The Facility Association, which is like insurance of last resort in Ontario. The Facility Association accepts all drivers that have been turned down in the regular market.
So there you go, that’s that… You can get insurance.
I’ll make it easy for you, though… Call me at 1-888-467-5499 . I’m an insurance broker with many different options at my disposal.
