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.
    In this case, the insurer must send you a letter to inform you that it will be cancelling the insurance. It will be cancelled 30 days after you receive the letter. You must make arrangements to find another insurer within that time.

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?

Find out how to file a complaint. Contact our Information Centre for help, if necessary.