Cancellation Mid-Term

by Bill
(Grimsby, Ontario)

My insurance company initially sent me a registered letter saying that on the renewal date they were not going to insure me anymore due to my poor driving record.

I was in the process of shopping for alternative insurance and was going to have to go to a high risk insurer. During the course of this process the new agent asked me to get a letter outlining my claims etc. from my previous insurer and I did.

Subsequent to this but before I signed up for the new insurance company I received a letter of renewal from my old insurance company (to my suprise!) at a rate higher than my old policy but much much lower than what I was going to have to pay a high risk insurer.

I called the new agent and told him this and he said to verify it with the old insurance company. I called them and verified everything (note at that point they were well aware of my past driving record!).

The renewal went through and they removed the first payments (two month's worth from my bank account).

Two weeks later I received a call from a lady from the insurance company and she told me that because of my driving record they were cancelling my insurance.

Can they cancel the insurance in the middle of the term if I have paid the premiums, they were aware of my past driving record prior to the renewal and I have not deceived them in any way?

What recourse do I have and if they say they can do it, should this be in the policy some place? Is there any place you can fight this?

Mid Term Cancellation

Hi Bill,
The situation you describe seems unusual. Most mid term cancellations are due to non payment of premium.

You should call the insurance company and ask to speak with a manager or their ombudsman (person who handles complaints).

You can also contact the Financial Services Commission of Ontario. They regulate the industry and have a complaints process:

http://www.fsco.gov.on.ca/english/insurance/resolvecomplaint-insurance.asp

Good luck with this!

By the way, are your rates too high? Check here:

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