Reinstate Car Insurance Ontario

insurance reinstatement ontario

Reinstatement Before Cancellation Becomes Effective

An auto insurance policy can only be reinstated if your car insurance company receives all outstanding insurance premiums, including a reinstatement fee, before the effective cancellation date.

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Reinstatement After Cancellation Becomes Effective

An auto insurance policy will not be reinstated once the cancellation has become effective. You would need to start a new auto insurance application.

What Does It Mean to Reinstate Your Insurance?

Reinstating your car insurance means restoring your auto insurance policy to its previous state, ensuring that your coverage is active and in force.

In Ontario, drivers who receive letters of cancellation for non-payment of the premium may be able to reinstate their car insurance policy.

A letter of cancellation is a warning that the outstanding premium requires payment within a set time frame for the official reinstatement of your auto insurance policy.

Cancellation due to non-payment may be rescinded if the auto insurance company receives full payment before the effective termination date of insurance coverage. Payment must be made in guaranteed funds.

If you’ve had your auto insurance policy cancelled more than once in the last 3 years, most auto insurance companies will not reinstate your policy. This will negatively impact your payment options, even while in the non-standard car insurance bracket.

Getting Insurance Reinstated After Cancellation

Once an auto insurance policy is cancelled you cannot reinstate the policy. You will have to start a brand new auto insurance application. Earned premium (time on risk) and any fees from the previous term must be paid to that auto insurance company.

Any outstanding balance owed must be paid in full with guaranteed funds before the auto insurance policy can be reinstated.

If you’ve been cancelled for non-payment within three years or received a second returned payment (NSF) in your policy term, the auto insurance policy can only be reinstated on a full payment basis.

A third cancellation for non-payment notice in a 12-month policy usually guarantees that the auto policy will be cancelled, whether or not the outstanding premium is received.

Peter Martire, CIP, CRM, RIBO – Executive Editor and Insurance Advisor

Peter has been working in the insurance industry since 2005. He has over 18 years of experience adjudicating complex auto insurance claims and sales and service brokering. In March of 2024, he partnered with Begin Insurance Inc. as a Senior Insurance Advisor. He also serves as Executive Editor of carinsuranceinontario .ca.

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