What Happens If Your Car Insurance Is Cancelled For Non-Payment?

Consider this scenario – You get an email from your insurance company that says your car insurance policy is pending cancellation due to an NSF on your monthly withdrawals.

What do you do?

Some people might just say, “Whatever, I’ll set up a new policy with a different company.” Sounds simple and easy, right?


I mean, yes, this is simple and easy, but this is not the right thing to do. This will cost you. You should make arrangements to pay the money owing before the cancellation deadline so that your policy does not get cancelled.

When a car insurance policy gets cancelled for non-payment in Ontario, this goes on your insurance history record (Autoplus). Now, when you go to set up a new policy, every agent and broker in Ontario will see that your policy was cancelled due to non-payment.

How Do Non-Payment Cancellations Affect You?

Having a car insurance policy get cancelled for non-payment in Ontario affects you in 3 ways:

  1. 1. This is a rating factor in new policies. It increases your rates, usually by quite a lot.
  2. 2. Many insurance companies will flat-out decline to set up a new policy. This means that it becomes much more difficult to shop around.
  3. 3. Out of the insurance companies that will still insure you, some will not offer monthly payments (Full payment for a 6-month or one-year policy would be required.

As you see, there are consequences to having a policy cancelled due to missed payment.

As always, though, you can call us for a car insurance quote, no matter what’s on your driving record. Our phone number is at the top of this page.

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