What are my options if my insurance is cancelled?
There are honestly not too many situations where an insurance company will cancel your insurance policy other than for consistently missing payments. Occasionally, you are allowed to be late on a payment and should expect a fee to be incurred, but making a consistent habit of this will prove to be a huge setback for you. In other situations, most companies will give the insured a bit of wiggle room (about a month) before any cancellations are made.
That being said, in almost every instance the insured will receive a cancellation notice from the car insurance company via registered mail. In most parts of Canada, the company will cancel your policy 15 days after you receive the notice. Those 15 days are your chance to have the cancellation reversed by paying off whatever amount you owe, otherwise the obvious ensues.
Like previously stated, missing a payment will only cost you a late fee if you respond to it promptly. However, if you decide to start a new car insurance policy with a different company without handling any debt owed to your previous company, then you can still be held accountable for leftover costs. Your previous company can and likely will bill you for each and every day you were covered without paying (earned premium).
Therefore, it’s wise to just take care of any debt as soon as possible, otherwise you risk the unpaid bills being sent to collections, which spells trouble for your wallet and your future insurance endeavors. The last thing you want is to be stuck with high risk car insurance in Canada, because you’ll surely be able to expect insanely higher prices for the same luxuriously cheaper premiums you once had.
Bottom line, keeping your insurance current and not making a habit out of missing payments will ensure that you don’t run into any of the aforementioned issues.