Getting Insurance Again After Cancellation or Refusal

The termination or refusal of an insurance contract can be a difficult situation. Whether it’s for your vehicle, your home, or your business, finding yourself without coverage can have significant consequences. Fortunately, even in complex situations, there are solutions to help you find car or home insurance after termination. 

Can an Insurer Terminate or Decline a Contract?

Several reasons can push an insurer to terminate or refuse to renew your policy. These decisions are often based on a risk assessment. Among the most common reasons are:

• Termination for non-payment: This is one of the most common reasons. Failure to pay your premiums may result in the cancellation of your insurance.
• Increased risk: Traffic violations (impaired driving, frequent speeding), or changes in use (e.g., a vacant house) are considered additional risk factors and may lead to the termination of your contract.
• False statements or omitted information: Failure to disclose all relevant information, even if the question is not explicitly asked, may result in cancellation or denial of coverage. You are required by law to disclose any information that could affect the risk (Article 2408 of the Civil Code of Quebec).
• Frequent claims: Too many claims in a short period, even if you are not responsible, may be seen as a high-level risk by the insurer. They can decide to terminate your contract.
• Bad credit or bankruptcy: Financial difficulties, such as bankruptcy, can represent an increased risk for an insurance company. Your credit rating or the consequences of bankruptcy can impact your insurance record.
• Criminal record: A criminal record can make searching for insurance much more complex. It may also result in additional premiums or refusals.

The Consequences of a Termination or Non-renewal of Insurance

Having your policy canceled or being denied coverage by an insurer can have several consequences: 

• Trouble finding a new insurer: Even a brief interruption in insurance coverage can make the search more difficult. Many insurers are reluctant to cover individuals who have had their policies canceled or who have been denied coverage. 
• Premium increase: Expect higher insurance premiums, as your profile is now considered higher risk.
• Reduced coverage: Your new insurer may limit some of your coverage or refuse to cover you for certain specific risks.
• Violation of legal obligation: It is illegal to drive without car insurance. Canceling your car insurance exposes you to fines, license suspension, and seizure of your vehicle. In addition, creditors often require home or car insurance when you take out a mortgage or car loan. Owners and renters of homes or vehicles are legally required to comply with this obligation. 

What to Do if Your Contract Is Terminated or Rejected?

Termination or refusal of insurance is not final. Although it may result in higher costs and less coverage, there are solutions available for people whose insurance policies have been cancelled. 

1. Be reactive: Don’t let your insurance interruption drag on. The longer you wait, the harder it will be to find new coverage.
2. Be transparent: When looking for a new insurer, always declare the termination of your old contract. It is also important to inform your insurer of any changes in your situation. A false declaration may result in the cancellation of your car or home insurance.
3. Prepare your documents: If you have a criminal record, obtain a copy of your certified criminal record check from your local courthouse. Similarly, have your SAAQ file on hand if you have a problematic driving record. This will speed up the process.
4. Assess the relevance of your claims: Before filing a claim for small amounts, contact your insurance broker. They can advise you on the potential impact of your claim on your insurance record.
5. Find car insurance: If you are unable to find car insurance after cancellation, contact the Insurance Bureau of Canada. This organization can help you find minimum liability insurance.

Contact an Independent Insurance Broker

At Assurances Multi-Risques, our independent brokers have excellent knowledge of the market and work with several insurers specializing in non-standard cases. Our team can help you find insurance that accepts canceled policies. We are equipped to defend your interests and find a solution tailored to your delicate situation.

At AMR, we offer personalized support that fits your needs, while working to lower your insurance premiums. We are your best allies in navigating these complex situations and protecting what matters to you.