Can you miss a car insurance payment?

8 minute read Published on Nov 7, 2023 by BrokerLink Communications

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Car insurance is legally mandatory for all motorists across Canada if they intend to use public roads for travel. And each year, when renewing your policies, drivers are provided with the option of paying for their insurance premium upfront in one lump sum or splitting the cost across 12 months. If you've opted for the latter, you'll be required to pay a certain amount each month manually unless you have set up automatic payments with your provider –kind of like a home insurance payment or a credit card payment!

Missing a payment can happen to anyone, whether it's due to an innocent oversight, logistical challenges with your bank or credit union, or a brief financial constraint. While incidents like these may not have a significant effect on some payments, an issue that's frequently raised by motorists is the repercussions of a missed payment involving their car insurance.

So, if you want to learn more about what will happen if you miss a car insurance payment, keep reading!

How many times can you miss an auto insurance payment?

The maximum number of times you can miss an auto insurance payment without serious consequences varies depending on the policy you have and the terms and conditions defined by your insurance provider. As a result, it's critical to go over the policy paperwork or contact your insurer for clarification on the regulations and requirements for late payments for your specific policy. These policies can differ between insurance firms and each policy, so understanding how they apply to you is critical to ensuring you meet your insurance obligations.

What happens if you miss a car insurance payment in Canada?

The consequences of failing to make a car insurance payment in Canada vary depending on your car insurance companies and the conditions of your policy. However, here are a few expected consequences:

Policy Lapse

If you fail to make a payment on time, your policy may lapse. As a result, you'll no longer have active insurance coverage and can be charged with driving uninsured, which is against the law in Canada.


If you regularly miss payments, your insurance company may cancel your policy altogether. A cancellation can make future coverage with other insurers more difficult and expensive to maintain.

Late Fees

Some insurance companies may charge late fees or penalties for payments that are received late. These fees may increase the strain on your finances and cause unnecessary stress in your life as well.

The Absence of Coverage

If your policy expires, you will not be covered for any occurrences or incidents that take place while you are uninsured. You will be solely accountable for any and all harm and liabilities.

Increases on Premiums

Failure to make payments and having your policy cancelled can result in more expensive insurance rates the next time you seek coverage. Missed payments may be interpreted by insurers as an indication of increased risk, which is similar to when an accident affects car insurance rates. In addition, it is likely that when you miss a payment, it will go on your insurance record.

Decrease in Credit Rating

Not only can insurance cancel your policy, but some insurance companies report missed payments to credit bureaus, which can adversely impact your credit score.

It is critical to keep up with your car insurance payments in order to prevent these repercussions. If you run into problems with finances, contact your insurer as soon as you can to talk about payment plans or changes to your coverage that will make it cheaper for you. Prompt contact with your insurer is critical to resolving the issue and avoiding an absence in coverage.

Is there a grace period for expired car insurance in Ontario?

In insurance, a grace period is a period of time during which late insurance payments on your insurance bill can be made without imposing penalties or having the policy cancelled. In Ontario, for example, the grace period for Toronto car insurance is 15 days if paid by mail and five days if paid in person. The rule requires insurance companies in the province to give customers plenty of time before cancelling their policies. Most importantly, your insurance coverage will remain in effect throughout the grace period, giving you the chance to get caught up on any missed payments without immediate repercussions.

What to do if you’ve missed payment on your insurance?

Here are the steps to take if you haven't made a car insurance bill payment in a while:

1. Contact Your Insurance Company

Contact your insurance company as soon as possible. It is critical to communicate as quickly as possible. Inform them of the late payment and the explanation for the delay. In certain instances, they may be willing to collaborate with you to solve the problem.

2. Recognize the Grace Period

Become acquainted with the grace period of your policy. A lot of insurance policies include a grace period in which you can make missed payments without facing immediate repercussions such as policy cancellation. Check the policy papers for the length of this grace period.

3. Make the Payment

As soon as possible, make the overlooked payment to bring the account up to date. Make sure you pay any late charges or penalties that may be imposed.

4. Change the Payment Schedule

If you are having ongoing problems with money, talk to your insurance company about alternatives. They may offer installment plans or changes to your coverage in order to make it less expensive in the near future.

5. Take Steps to Avoid Future Missed Payments

Take steps to avoid future payments being missed. If possible, set up automatic payments or create alerts to ensure you pay on time, you could also opt for a yearly payment plan rather than monthly so you only need to remember one payment. Financial planning and budgeting can also aid in the allocation of auto insurance premium funds.

6. Examine Your Coverage

Review the coverage you have on a regular basis to ensure it meets your current requirements. You may discover that changing your coverage can help you save money while still providing vital protection.

7. Shop for Quotes

If your present insurance company lacks the ability to meet your needs or if the missed payment problem persists, consider obtaining quotes from different insurance businesses. Different insurance companies may provide better policies or payment methods.

8. Stay Informed

Learn about the terms and conditions of your insurance policy, including cancellation policies for tardy payments. Knowing your policy will assist you in avoiding problems in the future.

Keep in mind that maintaining contact with your insurance company is essential. Most insurers have a willingness to work with customers who are experiencing financial difficulties to find solutions that avoid policy cancellation. However, it is critical to take care of late payments as soon as possible in order to prevent interruptions in coverage and potential legal penalties resulting from driving without insurance.

How to get car insurance after cancelled policy

Getting car insurance after cancelled policy issues can sometimes be more complicated than it may appear to be. Even if you don't qualify for standard car insurance, you can purchase high-risk policies. Continue reading to learn how to get car insurance after a cancelled policy:

1. Investigate Specialized Providers

Begin your journey by investigating specialized insurance companies. If you are unable to obtain a standard car insurance policy, high-risk or specialized firms may still provide coverage options tailored to your specific needs.

2. Consult a Broker

Seek advice from independent brokers who can provide valuable insight into your insurance options. These insurance experts have access to a wide range of insurers and can assist you in navigating the complexities of obtaining coverage.

How much is car insurance each month?

Whether you're a new driver or have recent changes to your circumstances, a common question we get here at BrokerLink is: how much is car insurance each month? And to put it simply, it really depends on several factors that are unique to each person. For example, drivers under 25 who are more inexperienced are more likely to pay higher rates than those who have been driving for longer. Nonetheless, some common factors include the make, model, and year of your vehicle, how often you drive, driving and claims history, the type of coverage you want, your age, gender, where you live, and more.

If you’re looking for a quote for car insurance in Canada, make sure to use our free, competitive online quote tool! And if you have any other questions regarding missing payment or your payment information, don't hesitate to reach out to an experienced broker from BrokerLink at any time!

What is high-risk car insurance, and how does it work?

Usually, insurance agents or brokers only recommend high-risk insurance when other options are unavailable to you, like when your current insurance company has cancelled your policy.

Essentially, The Facility Association, a government institution assigned to guarantee all drivers have a means of getting mandatory insurance coverage for their vehicle(s). However, it is essential to note that the Facility Association does not directly issue high-risk policies. These policies are instead made available through various auto insurance companies.

To accommodate drivers with unusual circumstances, provinces and territories across Canada offer high-risk auto insurance options. Just keep in mind that the options available will vary across the country. Therefore, we suggest motorists work with a broker in their area who can provide you with information related to the specific rules in your province or territory.

Nonetheless, here is a closer look at the key points outlining the process for obtaining high-risk auto insurance:

Initial Application

The process begins with you applying for standard car insurance coverage. They may request quotes from multiple insurance providers as each has unique criteria on how they calculate premiums and who they deem high risk vs. low risk.

Application Denial

If the initial applications are declined by standard market insurance companies, you may need to consider alternative options, such as high-risk or facility insurance.

Insurance Broker Help

During the phase of exploring high-risk insurance, an insurance broker becomes a valuable resource as they can assist you in understanding the available policy options and requirements. They may also order auto insurance history report information, which provides them a more detailed picture of your driving history.

Policy Purchase

After deciding on a suitable high-risk insurance policy, you'll purchase it from an insurance provider and continue driving as usual.

Something to remember

It is critical to remember that driving a vehicle without valid car insurance is against the law in Canada, and the consequences can be severe. Penalties for such violations vary by province but can include jail time, significant fines that range from hundreds to several thousands of dollars, and the revocation of your driver's permit. If you were uninsured and were in an accident, you would be personally liable for costs such as legal fees, medical expenses, and car repairs.

As a result, getting a new car and an insurance plan before the one you have now expired is critical. Driving without insurance is dangerous and could end up in higher insurance rates for your vehicle in the future. We advise you to contact BrokerLink if you want to learn more about the mandatory car insurance requirements in Canada. Our proficient insurance representatives are available to answer questions about the specific requirements in your province or territory and help you obtain a new policy that meets your current circumstances.

You can reach the team at BrokerLink over the phone, by email, or come visit us in person at any one of our locations across Canada.

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