policy cancellation and extremely high monthly premiums

by Lorri
(Barrie, ON. Canada)

My son had his insurance policy cancelled due to non payment (he became unemployed ) He's now working and wanted to re-instate his policy but was told that the premiums would be going up to over $500 per month!!!! OK he wasn't out on the town driving drunk or he didn't hit and kill anyone and he wasn't driving like the Indie 500 on our local road or highways.

He's not a criminal either.
Can you explain this?
He needs his job and he needs his car to get there. He is 40 years of age and has 2 young children and a wife.

Please help, we need some answers.

Thank you

High Insurance Rate After Non Pay Cancellation


Hi Lorri
Ouch. That's a tough situation. He needs to shop around quite a bit. If all the quotes are high, take a short policy of 3 or 6 months and shop around again after being insured for that period. That might help.

Just for information (not meaning to lecture as I understand how tough this is): It is always better to cancel rather than let a policy lapse due to non payment.

And for what it is worth. Those with a DUI typically pay $1000/month for several years. I know that's not helpful either, but I just want to point out that the more sever incidents are treated even more harshly.

Please be sure to discuss this further with a licensed insurance representative. Oh, and 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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