What happens if I miss an insurance payment?

A missed payment produces a notice from the insurer setting a date by which it must be paid. If it is not, the policy is cancelled for non-payment, which ends coverage and is recorded against the insured for years. Sutherland Insurance, a Guelph brokerage founded in 1870, can arrange payment with the insurer.

Part of the Sutherland Insurance guide to claims support.

The short answer

Missing one payment does not cancel a policy immediately. It starts a process with a deadline, and the consequences of letting that deadline pass reach beyond the current policy.

What is the sequence?

The payment fails, often with a fee charged by the insurer or the bank. The insurer issues a notice setting a date for payment. If payment is made by that date the policy continues. If it is not, the insurer cancels for non-payment from the date stated in the notice.

Coverage ends at cancellation. A claim arising after that date is not covered, and an Ontario vehicle without insurance in force is not legal to drive.

A cancellation for non-payment is recorded and is asked about on future applications. It narrows the number of insurers willing to quote and can raise what they charge, for years rather than months.

What does this mean for a policyholder in Ontario?

The notice is the point at which it is still straightforward to fix. Contacting the insurer or the broker before the deadline is what keeps a missed payment from becoming a cancellation.

Where payment dates do not suit, insurers can often change the date or the frequency, a conversation to have before a payment is missed rather than after.

Sutherland Insurance answers on 519-822-0160, Monday to Friday, 8:30 a.m. to 5:00 p.m.

These are the options. The right mix depends on the situation

The coverages above are the options generally available on an Ontario insurance policy. Which of them belongs on any particular policy depends on the property, the people insured, the limits selected and the individual insurer's wording. The policy document itself always governs. A licensed Sutherland Insurance broker can walk through the options and build a plan around your circumstances. Call 519-822-0160 or request a quote.

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