Why you might be declined for auto insurance
Being denied auto insurance is a sticky subject, because in Ontario, it is illegal to drive uninsured. So, while the industry as a whole cannot deny someone coverage, individual companies do have the right to deny customers insurance in extreme cases. Both companies and consumers must adhere to the Government of Ontario’s Auto Insurance Consumers’ Bill of Rights, protecting all parties and ensuring fair business practices. Here are some reasons an insurance company may decline your application for auto insurance, and what you can do in the event that you are deemed too “high-risk” to insure.
Too many tickets/driving infractions/at fault accidents
Depending on the provider, you can be denied coverage if you exceed the allotted number of driving infractions or at fault accidents. Some infractions are worse than others in the eyes of your insurer while determining the possibility of coverage. While a number of speeding tickets will cause your premiums to rise, chances are you will still be insurable; on the other hand, multiple DUIs may cause providers to second guess taking you on as a customer. There are some insurance providers that do cater to drivers with multiple infractions under their belt, so be sure to shop around and find the provider that works for you.
Continued failure to pay insurance
The Auto Insurance Consumers’ Bill of Rights states that you may not be denied coverage if you pay your premiums within 30 days following a non-sufficient funds (NSF) situation, up to two occasions. After that, it is up to the discretion of the insurance provider to deny you further coverage. To avoid losing your coverage in this manor, or being denied future coverage as a result of past-unpaid premiums, be sure to pay your premiums in a timely manor. Work with your insurance broker and see if a payment system may be arranged, or inquire about possible discounts that may lower your rates.
What to do if you are declined
If you have been declined for reasons that go against the Insurance Act of Ontario, such as credit history, physical or mental disability, location, or new to the country, contact the Financial Services Commission of Ontario (FSCO). All auto insurance providers must give written, legitimate reasons, that coincide with the Auto Insurance Consumers’ Bill of Rights, as to why they have denied you auto insurance coverage.
If you find that you have been denied auto insurance coverage for legitimate reasons, the Facility Association is there to help you. The Facility Association specializes in providing insurance to those that are deemed too high-risk to obtain coverage elsewhere. There are also insurance providers out there that cater to those who are deemed high-risk. While these are good options to obtain the coverage you need to legally drive in Ontario, be prepared to pay premiums that may come with a hefty price tag.