Ontario Car Insurance Company Decline Rules

How do you get classified as a high risk driver in Ontario?

Every car insurance company in Ontario has a set of decline rules. Decline rules are meant to make certain drivers uninsurable with a particular insurance company. If a particular insurance company has a decline rule that applies to you, they consider you to be a high risk driver and will not insure you.

If you’re considered a high risk driver, cal us for a car insurance quote at 1-888-467-5499. We have cheap rates.

Common decline rules:

Every car insurance company is different. However, most car insurance companies in Ontario will decline to insure the following:

  1. 1. The only vehicle on the policy is insured for less than compulsory coverages.
  2. 2. Driver has 3 or more minor convictions in the last 3 years.
  3. 3. The vehicle has any listed driver with 2 or more minor convictions in the past 3 years and 1 or more at fault accidents in the past 5 years.
  4. 4. Driver has 2 or more at-fault accidents in the last 6 years.
  5. 5. Driver has 1 or more cancellations for non-payment of premium in the past 3 years and one or more at fault accidents in the past 6 years.
  6. 6. Driver has 1 or more cancellations for non-payment of premium in the past 3 years and two or more convictions in the past 3 years.
  7. 7. Driver has 3 or more cancellations for non-payment of premium in the past 3 years.
  8. 8. Driver has 1 or more serious convictions in the past 3 years.
  9. 9. Driver has 1 or more Major convictions in the past 3 years including convictions under the Compulsory Automobile Insurance Act.
  10. 10. Driver has 1 or more convictions for automobile insurance fraud in the past 10 years.
  11. 11. All drivers listed on the vehicle (excluding drivers rated for on other vehicles) have 6 or more Minor convictions in total in the past 3 years.
  12. 12. The driver listed on the policy does not hold a valid licence in Ontario (ieg. unlicenced for any reason including an administrative lapse). This includes where no driver on the policy has the proper class of licence to operate the vehicle being insured.
  13. 13. Driver has any non – administrative license suspension (e.g. due to an accumulation of demerit points, driving while suspended, impaired etc) in the past 3 years.
  14. 14. Vehicle is not registered in Ontario,  is required by law to be registered in a jurisdiction other than Ontario,  or is unplated.
  15. 15. Vehicle value over $300,000.
  16. 16. Vehicle is branded “Irreparable” or “salvage”.
  17. 17. Vehicle used for delivery or commercial purposes including but not limited to courier or food delivery.
  18. 18. Applicant, named insured or driver has had an automobile insurance policy cancelled or a claim denied for material misrepresentation in the past 3 years.
  19. 19. Risk where the out of province exposure exceeds 6 months in any 12 month period.
  20. 20. There is a material change of risk within the meaning of the statutory conditions referred to in the Insurance Act. This includes but is not limited to a significant change such as additional drivers, a change in the way a described vehicle is used or a change in the status of a driver, owner or lessee of a described vehicle.
  21. 21. Applicant, named insured or any driver is verbally or physically abusive (including threats made) to an employee, service provider, contractor or agent of the company as reported to security and/or the police.
  22. 22. Applicant or named insured does not provide a residential address where the vehicle is garaged.
  23. 23. Fails to pay the overdue automobile premium owed to the company or any affiliate company.
  24. 24. Gives false particulars of the described automobile to the prejudice of the company.
  25. 25. Misrepresentation.
  26. 26.  Vehicle not manufactured for sale in Canada or the U.S.
  27. 27. Insured refuses to sign a required policy endorsement (eg. OPCF 28a, OPCF 40).
  28. 28. Failure to comply with requirements of the Statutory Conditions of the policy will result in mid term discontinuance of Loss or Damage coverage.
  29. 29. Risks that are located within any area that is under an alert or evacuation order issued by an civil authority.
  30. 30. The applicant or principal driver of an automobile is not ordinarily a resident of Canada or does not plan to remain in Canada for at least a year.
  31. 31. A requested, fully completed and signed automobile application form for issuance of the new business or renewal policy has not been provided.
  32. 32. The applicant is not both Register Owner and Actual Owner of the describe automobile(s).
  33. 33. Any listed operator that is driving in Canada under an International Permit.
  34. 34. Any automobile that is rented or leased to others.
  35. 35. Any automobile with a Vehicle Identification Number (VIN) that cannot be validated.
  36. 36. Any automobile used in connection with law enforcement.

These are generally the decline rules with most insurance companies. Of course, every insurance company is different. If your insurance company is declining to insure you, call us. We can quote you.

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