When an Auto Insurer Will Not Renew Your Policy in Ontario
Ontario insurers cannot simply invent a reason to decline or non-renew an auto policy. FSRA says underwriting rules must be filed and approved, and the insurer must identify the rule used when it refuses coverage or renewal.
The insurer must tell you which underwriting rule it used
FSRA says underwriting rules are the reasons an insurer may decline or non-renew an auto policy, coverage or endorsement. The rules must be filed and approved, and if the company refuses to sell or renew coverage it must advise the consumer in writing which rule or rules were used.
FSRA — Declined, non-renewed or terminated policies →What can trigger an underwriting rule?
FSRA lists common underwriting examples such as more than a specified number of driving convictions or at-fault accidents, a previous cancellation for non-payment, or failure to provide correct or complete information when applying for insurance.
The exact threshold is not universal across all insurers. Underwriting rules can differ by company, which is why a non-renewal from one insurer does not automatically mean every insurer will make the same decision.
FSRA — Underwriting-rule examples →Mid-term termination is more restricted after 60 days
FSRA says that once an automobile policy has been in effect for more than 60 days, the insurer may terminate it only for specified reasons. Examples include non-payment, false information, knowing misrepresentation or failure to disclose a material change in risk.
A material change can include additional drivers, a move or a change in how the automobile is used. Those examples are different from ordinary renewal pricing changes.
FSRA — Termination rules →What to do after a non-renewal notice
Read the written reason and identify the underwriting rule cited. If you believe the decision does not match the approved rule or your information is wrong, ask the insurer, agent or broker to explain the decision and correct any factual error.
Start shopping before the current policy expires. Compare equivalent coverage and disclose the requested information accurately. If regular-market options become limited, Ontario also has a residual-market mechanism through Facility Association, which is separate from ordinary insurer underwriting.