What happens if you are refused car insurance in Ontario?
4 minute read Published on Jun 3, 2025 by BrokerLink Communications
Can you be denied auto insurance in Ontario? Yes, but there’s a catch. While one insurance company can refuse you, the entire auto insurance industry can’t deny you insurance coverage. That’s guaranteed under the Auto Insurance Consumers' Bill of Rights, which is regulated by the Financial Services Regulatory Authority (FSRA) in Ontario. So, if you’ve been denied coverage, don’t worry—here’s what to do next. Let’s break it down.
Understanding why you were denied coverage
Underwriting rules are the guidelines insurers use to decide if they can refuse to renew or issue you an insurance policy, coverage, or endorsement. These guidelines are outlined in the insurance company’s underwriting manual and must be approved by the Financial Services Commission of Ontario.
There are many ways you could be invalidating your insurance without realizing it. Some common reasons include having a poor driving record, too many claims on your record, previous policies cancelled for non-payment, providing incomplete or incorrect information on your application, or having a suspended licence. We will examine each reason in detail below:
A poor driving record
If you’ve been in one or more accidents where you were found at fault, or if you have too many traffic tickets on your record, your insurance provider might refuse to renew your policy or offer you coverage. Having these on your driving record can label you as a high-risk insurance driver, which means higher premiums and a more difficult time finding coverage.
Too many claims
Filing too many claims in a short period can raise red flags with your insurer. Even if the claims are legitimate, insurers try to balance the risk they take on with the premiums they collect. Too many claims can lead to denied coverage and might even land you in the high-risk driver category, which comes with higher premiums.
Failure to pay
Missing insurance payments, even by just a day, can show up on your insurance history and make it harder to get coverage in the future. To avoid this, always pay on time—or better yet, early—so non-payment doesn’t become a reason an insurance company might deny you.
Incomplete or incorrect information
If you’re not truthful and your insurance company finds out, they can cancel your policy. This includes leaving out important details or not disclosing something fully—it’s all considered misrepresentation.
Suspended licence
In Canada, provinces and territories can suspend or revoke your driver’s licence for a variety of reasons. Whether it’s getting too many tickets, driving under the influence, or accumulating too many demerit points, the provincial government has the authority to take your licence away. If that happens, your insurance company might cancel your insurance policy or deny you insurance coverage since you temporarily cannot drive.
What do I do if I'm refused car insurance?
Just like a car insurance company can deny your claim, it can also deny coverage. And the first step is to figure out why you were denied. Knowing the reason gives you a chance to address it. According to FSRA, if your insurance company refuses to sell or renew your policy, they’re required to explain in writing which rule or rules they used to deny you.
Once you know why you were denied, it's time to contact other insurers. Just because one insurance company denies you coverage doesn't mean they all will—in fact, they all can't. Remember, you have a right to carry insurance in Ontario.
Since driving without insurance isn’t an option, start by shopping around and comparing rates from other insurance providers. If your driver's licence is in good standing and hasn’t been suspended, you should still be able to get car insurance from another company and get back on the road. You may want to look for insurance companies that specialize in providing coverage to high-risk drivers.
Another option is to work with an insurance broker. If you're having a difficult time finding an insurance company that will cover you at a rate you can afford, brokers can do the insurance shopping for you and can more easily find the best available coverage for you.
Finally, if no insurance companies are willing to cover you because of a particularly bad driving record, you can turn to The Facility Association. It’s essentially a last-resort option for automobile insurance in Ontario and accepts all drivers who have been declined in the regular market.
How to improve your insurability
Once you have a bad driving record, it mostly comes down to time and patience until you can start seeing better insurance rates again.
Traffic offences, accidents, and tickets don’t stay on your driving record forever—they’ll eventually come off. When they do, your insurance rate will go down. The problem is that it can take up to six years for some things to clear, which is why a little time and patience are key.
For example, an at-fault collision can stay on your record for six years and speeding tickets can remain for three. Improving your driving, avoiding accidents, and following the rules of the road are great ways to keep your insurance costs down.
Another thing that can help is making sure you make all your payments on time, every time. Even one missed or late payment can stay on your record and affect your insurance premiums going forward. It's also important to keep your policy up to date and renew it on time. A lapse in coverage looks very bad in the eyes of insurers.
Find the best auto insurance rates with BrokerLink
Being denied insurance coverage can be frustrating, but it’s not the end of the road—you can get insured again. That’s where we come in. At BrokerLink, we can help you find affordable rates and work with you to find the coverage you need at a price you can afford. Don't wait—let BrokerLink help you and your vehicle get back on the road, today!
You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.