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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Note: Always speak with a licensed insurance professional about your specific situation. This insurance information is general in nature and the policy wordings always take precedence. It is possible that there are errors and omissions in this website and www.canada-insurance-source.com, or its authors, take no responsibility.

Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind.  Make sure you review the "please read" page. Always speak with a licensed insurance professional about your specific situation.

Always speak with a licensed insurance representative about your specific situation.

This site is general in nature and there may be errors or ommissions

Please Read

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