Driving without insurance is illegal, so what happens when insurers will not take a driver? In Ontario there is a safety net, and a path back to standard rates.
The Facility Association
The Facility Association was set up by the auto insurance industry as a backstop. The Insurance Bureau of Canada (IBC) says it guarantees the availability of car insurance to those eligible to obtain it. It does not issue policies itself. It works with specific insurance companies that issue the policies, collect premiums and handle claims.
Who ends up there
IBC lists reasons such as a poor driving record or no driving record at all, recent or multiple claims, the make or model of the vehicle, how the vehicle is used, a history of payment problems, or a combination. It is not a punishment, but it is typically more expensive than standard coverage.
What to expect
- IBC says premiums are generally higher than in the competitive marketplace, so it advises continuing to shop around and asking your insurance representative about ways to pay less.
- The coverage still includes the required coverages.
- Optional coverage may be limited depending on the situation.
Working your way back
- Keep continuous coverage. Gaps make things harder.
- Avoid new claims and convictions.
- Ask your broker how long your history affects pricing and when it makes sense to try the standard market again.
- Check for accurate information on your record. Mistakes can be corrected.
An honest note
If you drive without insurance you risk fines, losing your licence and personal responsibility for any injuries or damage you cause. A higher premium costs far less.
Questions to ask
- Why was I declined by insurers, and which factors can change?
- When can I try the standard market again?
- What coverage am I getting, and what is missing?