Can I make changes to my car insurance policy?

Wondering if you can make changes to your car insurance? The answer is yes, you can. But before you make any moves, it’s worth knowing that changes, especially cancelling your policy early, can sometimes come with fees or penalties. That said, checking in on your coverage from time to time is a good idea. Perhaps you’re hoping to save money, update your policy to match your current needs better, or switch to a new provider. Whatever the reason, your insurance should work for you, not the other way around.

And it’s not just about cost. As your life changes, say you move to another province, buy a new car, or add a new driver, your insurance should change with it. Staying properly covered is key not only for your financial well-being, but also to meet legal requirements in Canada. Whatever the reason, we’re here to walk you through the how and why of changing your auto insurance policy so you can make informed decisions that work for your wallet and your peace of mind.

Common reasons for changing car insurance

Your car insurance policy isn’t something you set and forget; it should evolve as your life does. In Canada, there are plenty of perfectly valid reasons for reviewing or changing your auto insurance coverage. Whether it’s a major life event or just a change in finances, keeping your policy up to date ensures you’re properly protected and not overpaying. Below, we’ll cover the most common reasons to change your car insurance:

Life events

Big life changes often mean it’s time to revisit your car insurance. Got married? Great! You might be eligible for multi-vehicle or bundled discounts if you and your partner combine policies. On the other hand, going through a divorce may mean separating policies and adjusting who’s listed as a driver.

If you’re moving to a new city or province, rates can vary widely by location, so a change in address usually triggers a policy update. And if you’re adding a new driver, like a teen who just got their licence, you’ll definitely need to inform your insurer (and ensure you are prepared for a potential rate hike).

Vehicle changes

Any time you buy a new car, lease a vehicle, or make major modifications, like installing a new engine or adding custom parts, it’s essential to let your insurance provider know. Different cars come with different risk levels and repair costs, all of which affect your premiums. Even something as simple as switching from an older sedan to a newer SUV could significantly impact your rate.

Coverage needs

Maybe your commute has changed, and you don’t drive as much anymore. Or perhaps you want to raise your deductible to lower your monthly premium. Maybe you changed your mind after getting your policy and decided that you do want to add comprehensive coverage for theft or weather damage. These are all good reasons to adjust your coverage. Or, like 58% of drivers from a survey by Ratehub, you’ve decided to bundle your auto insurance with other insurance products, like home and auto policies, to take advantage of discounts.

Financial factors

Sometimes, the motivation is purely financial. If your budget changes (say, after a job shift or major expense), it might be time to shop around for a better rate. In fact, that same survey from Ratehub showed that 57% of Canadian drivers have switched insurance providers due to price increases. Canadians are becoming increasingly proactive about comparing quotes, switching providers, or asking for discounts like usage-based insurance or loyalty rewards.

Changing your car insurance: what’s allowed and when?

Yes, you can generally make changes to your car insurance policy at any time. You can typically update the following details mid-policy:

• Address

• Adding or removing vehicles

• Adding or removing drivers from the policy

• Coverage limits or deductibles

• Usage

Most insurance companies will allow you to make these changes through your online account, over the phone, or through a broker. Just keep in mind that your rate might go up or down depending on the change.

Can I switch insurance providers mid-policy?

Yes, you can also switch car insurance providers before your renewal date. Say you’ve purchased a new car or want to add your teenage driver to your policy, and have found a better rate with another insurance company. In that case, you may want to switch insurance companies instead of just updating your current policy. However, it’s important to know that cancelling your policy mid-term could have negative effects, specifically cancellation fees or penalty costs. Depending on the terms outlined in your policy, it may be best financially if you wait until your current term ends—unless you and your insurance broker can determine that you would ultimately save more money by changing policies earlier.

If you’re planning on switching providers, most policyholders will wait until their current term is up and then inform their current insurance company that they do not wish to renew. Waiting until your policy expires before switching car insurance companies will allow you to avoid a penalty or cancellation fee. Not sure if you should stick with your current insurer? Reach out to BrokerLink. We’re here to help you figure it out. We’ll compare multiple car insurance quotes for you, track down any discounts you might qualify for, and make sure you’re getting great coverage at the best possible price.

How to modify your auto insurance policy

Thinking about updating your car insurance policy, but not sure where to start? You’re not alone. Whether you’re moving, changing vehicles, or just want to tweak your coverage, making changes to your policy is usually pretty straightforward. To help you out, we’ve put together a simple step-by-step guide that walks you through the process:

1. Review your current coverage

Start by taking a look at your existing policy. Are your coverage limits still right for your situation? Do you have the right deductibles? Are there optional add-ons (like roadside assistance or rental coverage) you no longer need, or maybe want to add? This will help you figure out what still fits your needs and what doesn’t.

2. Gather any required paperwork

You may need to provide supporting documents depending on the change. For example, you might need proof of your new address, a vehicle registration, or a copy of a driver’s licence for a newly added driver. Have your insurance documents ready to help you avoid any delays.

3. Contact your insurer

Once you know what changes you want to make, reach out to your insurance provider. Most companies let you make updates through their online portal, over the phone, or by visiting an agent or broker. Choose whatever’s easiest for you, but don’t be afraid to ask questions if anything’s unclear.

Some changes, like updating your address, can take effect right away. Others, like switching vehicles or adjusting coverage, might take a day or two. Your insurer will let you know how long it’ll take for the changes to go through.

4. Be aware of any fees

Some changes are free, but others, like cancelling your policy early, might come with cancellation fees. It’s a good idea to ask about any costs up front so you’re not surprised later.

How do I update my policy if I’m moving within Canada?

If you’re just moving to a new place within the same province, the process is simple. You just need to let your insurance company know your new address. Easy. But if you’re moving to a different province, things get a bit more involved. You’ll need to set up a new policy in your new province and then cancel your current policy, since each province in Canada has its own rules and requirements when it comes to auto insurance. Also, don’t be surprised if your premium changes after you move. Insurance companies consider your location when calculating your rate. If your new neighbourhood has a higher risk of things like car theft or vandalism, or if your new commute means more time on the road, your premiums could go up.

How do I update my policy after buying a new car?

Ideally, it’s best to sort out your auto insurance before you drive your new car off the lot. But if you already have coverage on another vehicle (like the one you’re trading in), you might not need to start a brand-new policy from scratch.

Most insurance companies make it easy to transfer your existing coverage to your new car. Just give your provider a heads-up, and they’ll walk you through the process. You can even ask for a quote before you finalize the purchase, so you’ll have a good idea of what your new premium will look like. Once your coverage is updated, your revised policy will carry through until your usual renewal date.

How do policy changes affect insurance premiums?

As you may have gathered by now, any time you make changes to your car insurance policy, there’s a good chance your premium will shift, too. Knowing what to expect can help you avoid surprises on your next bill. Here's what you need to know:

When your premiums might go up

Let’s start with the less fun side: higher costs. There are a few common changes that tend to bump up your premium:

• Adding a high-risk driver, such as putting someone on your policy with a poor driving record or adding a young or inexperienced driver, like a teenager

• Lowering your deductible

• Upgrading to a more expensive car, as they often cost more to insure due to higher repair or replacement costs

• Moving to a higher-risk area, such as one with more traffic, theft, or accident rates

When your premiums might go down

On the other hand, certain changes can actually save you money:

• Switching to usage-based insurance, as it tracks your driving habits and can reward you with discounts

• Raising your deductible

• Bundling multiple policies can lead to significant savings with most providers

• Moving to a lower-risk area

Mistakes to avoid when changing your Canadian car insurance

Making changes to your current policy can be the best thing for your needs, but only if you avoid a couple of common mistakes:

Not comparing quotes

One of the biggest mistakes drivers make is adjusting their policy without checking out what else is out there. Your current provider might not be offering the best deal anymore. Comparing quotes from other insurers can help you find better coverage or lower premiums, and it only takes a few minutes online.

Cancelling before your new coverage starts

Never cancel your old policy before your new one is officially active. A gap in coverage, even for a day, can leave you unprotected if something happens, and it could even result in higher premiums down the road, as insurance companies see a gap in coverage as a risk. Always make sure your new policy is confirmed and in effect before cancelling anything.

Contact BrokerLink to learn more

Do you still have questions about switching your Canadian car insurance policy? Contact BrokerLink today. We can help answer any questions you have, including what mandatory coverage you need for your province. While some provinces only require third-party liability coverage and accident benefits coverage, others also require uninsured automobile coverage and direct compensation-property damage coverage.

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.