Do you want to cancel your auto insurance contract? Here’s what you need to know!
To cancel an insurance contract, you must tell the insurer. You must send a letter to your insurer officially notifying it that you are cancelling your contract. The insurance will be cancelled when the insurer receives your letter, not when you send it.
Call your insurer to check that it received your letter, or ask for an acknowledgement of receipt.
When can I cancel my auto insurance contract?
You can cancel an insurance contract at any time.
If I cancel the contract, will I have to pay penalties? Will I be reimbursed?
The insurer will generally charge you a penalty if you cancel your contract before its renewal date. Once you’ve paid this penalty, the insurer will reimburse you for all overpaid premiums.
Can the insurer cancel my auto insurance contract?
Yes, but only under certain conditions.
- Within the first 60 days
Your insurer can cancel your auto insurance contract within the first 60 days, for any reason. However, it must notify you in writing beforehand. The insurance is cancelled 15 days after you receive the letter.
- After the first 60 days
After this 60-day period, your insurer can’t cancel your insurance contract, unless it has a valid reason. There are only two valid reasons:
- The risk has increased significantly.
- You haven’t paid the amounts owing.
If the insurer cancels the contract, will I have to pay penalties? Will I be reimbursed?
If the insurer cancels the contract, it cannot force you to pay a penalty, regardless of why it cancelled the contract. Also, it must reimburse you for all overpaid premiums, if any.
Have a problem with your insurer?
Documentation and tools
- Let's talk insurance! (pdf - 134 KB)This link will open in a new windowUpdated on 29 October 2018 The purpose of this fact sheet is to inform you of your rights. It does not relieve the insurer or the distributor from their obligations toward you.
- Choosing Auto Insurance (pdf - 382 KB)This link will open in a new windowUpdated on 25 February 2013
- My First Car Insurance Policy (pdf - 1 MB)This link will open in a new windowUpdated on 18 July 2012
- Insurance sold by Lenders and merchants (pdf - 972 KB)This link will open in a new windowUpdated on 29 September 2017