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Facility Auto Insurance and How to Avoid It

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Auto insurance is a compulsory product for all drivers throughout Canada. Every car on the road in Canada is required by law to have basic car insurance. This requirement is what makes people search for cheap car insurance.


Car insurance providers in Canada have cut-off points as to the number of accidents they can accept per driver. When getting an insurance quote, the insurance agent will ask you about the number of tickets (and accidents) you have had in the last three years.

If your tickets/accidents for the past three years exceed the insurer’s cut-off point, they will not quote you. Since basic auto insurance is mandatory in Canada, the insurance provider can’t refuse to insure you. What they’ll do is advise you to get facility auto insurance. Here, the car insurance provider insures you through the Facility Association (FA).

In simple terms, the Facility Association is insurance of last resort. It is a pool where auto insurance providers share the risk of the drivers that nobody wants to quote. The FA enables every driver to obtain a cover – regardless of his or her driving record.

How to Avoid Facility Auto Insurance?

If you have a history of high number of driver tickets, accidents or cancellations for non-payment, you have no option but pay the higher premiums charged by the FA.

However, even if an insurer tells you that you can only qualify for FA… that may not be the case. If you take your time to research the car insurance providers in the industry, you’ll find ways to avoid facility auto insurance.

The following are some of the tactics you can employ to avoid Facility Insurance – and get cheap car insurance:

      1. Keep Your Driving Record Clean

One of the easiest ways to avoid FA and its considerably high premiums is to keep a clean driving record.

If you’re already insured under FA, avoid accidents and tickets at all costs. With time, this will help you qualify for a better rate.

If you have had zero accidents for the past three years or zero tickets for the past three years, you should be eligible for regular auto insurance.

      1. Pay Your Premiums On Time

If you are insured with FA for missed payments in the past, aim to pay current and future premiums on time. This will help you clean up your records faster.

      1. Go With A “High Risk” Insurance Company

If, for any reason, you feel that you don’t deserve to be placed under the Facility Association, consider going with a “high risk” insurance provider.

A handful of “high risk” auto insurance companies in Canada may still be willing to insure you regardless of your driving record.

Generally, the high-risk insurance companies will offer you a much better rate than FA would.

A Guide to buying a New or a Used Car in Canada

A Guide to buying a New or a Used Car in Canada

Buying a car can be a daunting task. There are many decisions to make and aspects to take into account. You have to decide what type of vehicle and brand you want, your budget, and whether you want to buy a new or used car. Fortunately, this in-depth Canadian car buying guide covers most of the important aspects that you should consider before making a purchase. It will make the process easier by walking you through the steps of buying a car in Canada.

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