Switching Auto Insurance Companies in Ontario
Ontario drivers can shop around and change insurers, but timing matters. Switching at renewal is usually simpler than cancelling mid-term, when cancellation charges may apply.
Ontario consumers can change or cancel an auto policy, but mid-term cancellation can cost money
FSRA says consumers have the right to change or cancel an auto insurance policy. Its shopping guidance also warns that cancelling an existing policy before it expires may involve a penalty and suggests considering a new policy that begins when the existing policy expires.
FSRA — Working with your broker, agent or insurer →Renewal is the natural comparison point
FSRA says consumers should generally receive renewal information about 30 days before the policy expires. That gives time to review price and coverage, ask questions and compare alternatives.
FSRA also states that you are under no obligation to accept your current insurer's renewal offer. If another policy provides better value, the new policy can be scheduled to start as the old term ends.
FSRA — Rate approvals and shopping at renewal →Switching mid-term can involve a cancellation penalty
If you cancel before expiry, the insurer may apply an approved cancellation method or short-rate penalty. The amount can depend on the policy and timing.
Before switching for a lower annual premium, compare the actual cancellation cost with the expected saving. A C$200 lower quote may not save money if the existing policy costs more than that to cancel early.
Do not stop payments to end the old policy
FSRA explicitly warns consumers not to stop making payments when they do not want to renew. Non-payment cancellation can affect future insurance access and risk classification.
Notify the broker, agent or insurer properly and obtain confirmation of the intended cancellation or non-renewal date.
Compare the policy, not only the premium
Check liability limits, optional accident benefits, DCPD status, collision/comprehensive, deductibles and endorsements. Also consider claims service and how policy changes are handled.
A lower price from another insurer is meaningful only if you understand what protection and conditions are changing.
FSRA — Your Auto Insurance →