Cancelling car insurance can be tricky, especially because every driver in Canada is required to have an existing policy for a vehicle owned. So, whether you’re cancelling your car insurance plan because you want to switch providers or because you’re buying a new car, you must have another one ready to replace the old one if you’re still in possession of a vehicle.
It’s pretty straightforward to end your car insurance plan in Canada–all you need to do is get in touch with your insurance company, typically through your agent (i.e. the one who offered you the plan or is in charge of collecting your premiums or dealing with your claims).
You can end your policy via phone, mail, or personal appearance; you’ll just have to iron out the details with your agent and pay any penalties, if any. Your insurance provider may ask for some information, like your policy number, some personal details (such as your address and birthdate), and details of your new insurance or proof that you’re forfeiting your vehicle. Then, you’ll just sign the papers and you will be good to go!
Cancelling car insurance is simple, but there are a few things you should keep in mind to minimise any penalties or sanctions that you could incur in the process. Here are some tips to heed when cancelling your car insurance in Canada:
Each car insurance policy is unique, and every one comes with a contract that details certain rules and conditions that you may have to follow to successfully end your plan. Read the fine print to ensure that you’re not breaching your contract. This ensures that you won’t have to pay any exorbitant fees and that you won’t get flagged for any reason when you take out a new policy later on.
Cancelling your car insurance in the middle of your contract may mean you’ll have to pay certain cancellation fees. The closer to the end of your term that you cancel, the less you’ll have to shell out. That said, other factors could affect how much it’ll cost you to end your plan, including outstanding fees and non-refundable payments.
Car insurance is legally mandated in Canada for all vehicles. So, as long as you own a car, you’re required to have a policy in place. Additionally, certain localities impose requirements that dictate the minimum coverage your plan should have. Check with your province’s regulations to ensure that you abide by all the laws.
Due to Canada’s legal mandate to have a car insurance policy for every vehicle, ending your plan can be a little tricky. The most important thing to remember is to always have car insurance in place if you own a vehicle, making sure that it fulfils the minimum legal requirements of your territory.