Cancelling Auto Insurance in Ontario
What to check before ending an Ontario auto policy, including mid-term cancellation costs, non-payment consequences and the importance of keeping continuous coverage when switching insurers.
Changing companies before expiry can involve a cancellation penalty
FSRA advises that if you cancel an existing policy before it expires in order to change insurance companies, you may have to pay a penalty. One alternative is to arrange the new policy to begin when the existing policy expires.
FSRA — Working with your broker, agent or insurer →Do not use non-payment as a way to cancel
FSRA specifically warns consumers not to simply stop making payments when they do not want to renew. Non-payment can cause the insurer to cancel the policy and may affect future insurance availability or risk classification.
If you intend to end coverage, contact the broker, agent or insurance company and follow the insurer's cancellation process instead of creating a payment default.
FSRA — Renewal and cancellation guidance →Line up the new policy before the old one ends
Ontario law requires vehicle owners to maintain auto insurance. When changing insurers, compare effective dates carefully so the new policy begins before or exactly when the old coverage ends.
A cheaper premium is not useful if the switch accidentally creates an uninsured period. Compare coverage limits, deductibles, optional protections and endorsements as well as the effective date.
Why renewal is usually the cleanest shopping window
FSRA says consumers should generally receive renewal information approximately 30 days before expiry. That window gives time to review changes, shop around and arrange another policy without unnecessarily cancelling mid-term.
If a competing offer is materially better, align the new effective date with the current policy expiry unless there is a clear reason to switch earlier and you understand any cancellation cost.
FSRA — Renewal timing →