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13 minute read Published on Jan 23, 2026 by BrokerLink Communications
So your car insurance policy has expired. Maybe you missed an email, or your notice got lost in a pile on your desk. Whoops. Letting your car insurance lapse may seem like a harmless oversight, but in Canada, driving without valid coverage is neither harmless nor legal. In fact, most provinces require continuous auto insurance, and getting caught without it can lead to fines, licence suspensions, or even vehicle impoundment.
But beyond the legal implications, gaps in your insurance history can lead to higher future premiums. This is because a lapse suggests to insurance companies that you’re a higher-risk customer, which may put you in a less favourable rate category when you finally do renew. And since auto insurance premiums increased nearly 10% in mid‑2024 compared to the previous year, according to Statistics Canada, you probably don't want to do something that could risk increasing them even more.
But while missing a renewal date isn’t necessarily common, it's important to know that even short gaps in coverage can be costly. Canada’s provinces mandate uninterrupted coverage if you're driving, so letting your policy expire, even briefly, could leave you uninsured during an accident or traffic stop. The good news is that it’s often fixable. For drivers facing an expired car insurance renewal, some car insurance providers may offer a limited grace period, during which you can reinstate your car insurance policy and prevent a coverage gap from appearing on your insurance history. However, you still remain uninsured during this time, so acting fast is essential.
We get it. Life gets busy, and it's easy to forget something as simple as renewing your car insurance. But that's not the only reason some people let their car insurance policies expire. Here are some of the top reasons why Canadian drivers end up with an expired policy:
As we said, we get it. Life gets busy. Renewal reminders can get lost in the inbox or buried in the mail pile. What starts as a harmless oversight can quickly spiral into expired car insurance, especially if you’re juggling a busy schedule or travel plans. This is why some car insurance providers offer a limited grace period for renewals.
Unexpected expenses can leave someone debating over whether they need to cover those first or their insurance. The truth is that when money’s tight, making insurance payments may not seem as urgent. Statistics Canada reports that between 2019 and 2024, inflation in vehicle parts and repairs increased 22.3%, and the median cost of new and used vehicles rose 61.5% and 82.2% respectively, making insurance even more expensive at renewal time. For some, pushing a renewal isn't so much a choice but a financial necessity.
According to the Canadian Underwriter, about 30% of insurance non-renewals in Ontario are due to expired driver's licences that drivers forgot to renew.
As you now know, driving without insurance in Canada is illegal. However, what consequences you'll face can vary between provinces. And while it’s not considered a criminal act, the consequences set by each province can be steep and long-lasting. Here are a few examples:
Province
Consequences for driving without insurance
Alberta
The Traffic Safety Act mandates fines ranging from $2,500 to $10,000 for a first offence, plus towing and impound fees. Repeat infractions within five years can cost up to $20,000. If you can’t pay, you may face up to 45 days in jail. Penalties may also include a licence suspension.
British Columbia
The BC RCMP states that driving without insurance leads to a $598 violation ticket and your vehicle being towed on the spot. Beyond the immediate fine, if you get into a collision while uninsured, you could be personally sued and held fully responsible for all damages and costs.
Manitoba
Under Manitoba's Highway Traffic Act, drivers caught operating a vehicle without insurance may be fined up to $2,000 and have their licence suspended for up to a year. Furthermore, if the fine isn’t paid on time, your driver's licence or permit will be suspended, and you won’t be able to get it reinstated or apply for a new one until all fines and fees are fully paid or cleared.
Newfoundland & Labrador
As outlined by Newfoundland & Labrador's Government Modernization and Service Delivery, driving without insurance can lead to your vehicle registration being cancelled, your car being impounded, fines up to $5,000, and even the addition of six demerit points to your driving record.
Nova Scotia
As outlined in Nova Scotia’s Vehicle Registration and Insurance handbook, driving without insurance can lead to a fine of $1,250 for a first offence. In addition, if you’re found guilty of not carrying the required coverage, the Registry of Motor Vehicles will suspend your licence, driving privileges, and all vehicle registrations.
Prince Edward Island
Under PEI's Highway Traffic Act, drivers caught without insurance can result in fines of up to $2,000, a licence suspension of up to one year, and possible vehicle impoundment. Additionally, the Registrar can issue a written notice to suspend your vehicle’s registration permit and require you to return both the permit and licence plates for that vehicle.
Ontario
Under the Compulsory Automobile Insurance Act and Highway Traffic Act, first-time offenders face a minimum $5,000 fine (and potentially up to $25,000) along with a 20–25% victim surcharge. Your licence can be suspended for up to one year, and your vehicle may be impounded for up to three months
Quebec
A minimum fine of $325. If involved in an accident while uninsured that causes over $500 in property damage, your driver's licence, or your right to obtain one, will be automatically suspended.
Saskatchewan
According to the SGI, driving without insurance can result in a minimum fine of $580, a suspended licence, and possible vehicle impoundment.
A continuous insurance history signals financial responsibility. But once your car insurance policy has expired, you will no longer be covered, and you will be driving illegally. That's why it's essential for you to renew your car insurance before it expires. Here are ways to help you remember:
If you can, mark your expiry date in multiple places, such as a physical planner, your Apple or Google Calendar, and in your phone reminders, and set alerts to remind you one month, two weeks, and even a few days before your policy is set to expire. Sure, it might feel excessive, but repetitive nudges are often what save us from forgetting.
A licensed insurance broker can be your auto insurance plan’s guardian angel. They’ll notify you when a renewal’s approaching, guide you through rate changes, and secure new coverage if you decide to shop around for a cheaper policy. By working with a broker, they can help ensure you don’t get caught with a lapse in coverage.
You need to make sure that your insurance provider (or broker) always has your current email, phone number, and address. According to the Insurance Bureau of Canada (IBC), your provider must share your policy’s renewal terms with you at least 30 days before it expires, though many providers send notice earlier than that. But if your contact information is out of date, you may not receive your renewal notice in the mail or in your inbox. So, if you're planning to move or change your phone number or email, make sure you don't forget to include your insurance provider on your list of who you need to update.
Every auto insurance policy comes with specific terms and conditions, including an expiration date that marks when your coverage officially ends, unless you choose to renew it. In many cases, insurance companies make things easier by offering automatic policy renewals, provided you have a clean driving record and keep up with your payments. This can be great if you have a tendency to forget your renewal date.
However, this generally only works for policies with monthly payment plans. Typically, monthly payments are automatic, but annual payments are not. So, if you choose to pay your premium annually instead, which many do because it can save you money in administrative fees, you will have to remember to pay your next annual payment, or your policy will expire.
Also, we want you to keep in mind that, if you do have automatic renewals, it's still important for you to review your policy before it actually renews, just to make sure that your situation hasn't changed. You could be paying for coverage you no longer need, or there might be another type of coverage you need to add. You may also want to shop around to see if you can find a better rate. Contact a BrokerLink broker to help you review your policy.
In the insurance industry, a grace period is a short window of time that generally refers to a payment grace period, where you missed a payment but your coverage still remains intact as long as you make your payment within the grace period. However, it can also sometimes refer to a:
Policy expiry grace period, where your coverage stops, but you still have time to reinstate it by making your annual payment before facing significant future insurance penalties.
When your car insurance policy officially expires, your coverage stops immediately, and you’re no longer legally allowed to drive. But in many cases, insurance companies offer a short grace window where you can still reinstate your expired policy without being penalized as a "high-risk" driver or facing huge premium hikes down the road.
In Canada, these grace periods for expired policies vary depending on the province and the insurance provider, but may last up to 30 days. Remember that during this time, you’re still not covered, but you may be given a chance to reinstate your policy without triggering severe consequences for your insurance record by paying your annual premium.
For example, say you forgot to renew your car insurance policy on July 1st. It is now July 7th. Knowing it had expired, you haven't driven all week, but this is the first time you've been able to contact your insurance provider. Because you acted quickly within your provider's 30-day grace window, you are permitted to reinstate your policy by paying your premium. However, if you've passed your insurance provider's grace period, you will need to apply for a new policy, and you will now have a gap in your continuous insurance history for a missed payment. This will lead to a rate increase.
No. Even if your insurance provider offers a grace period to reinstate your expired policy, you’re legally uninsured from the moment your policy expires. Driving during this period can lead to fines, licence suspension, or worse if you’re involved in an accident.
No, you generally cannot submit a claim or a potential claim that occurred between when the policy expired and when you made your payment to reinstate. Even though you were given a grace period to reinstate your policy, it had expired during that time, which means you had no coverage for that period.
If you pay your policy annually, and you forget to make your annual payment more than once, your insurance company may no longer allow you to reinstate it. For example, Allstate will not allow you to reinstate your policy a second time. This means you will have to apply for a new insurance policy, and you will have a gap in your continuous insurance history for a missed payment.
So your automobile insurance policy has expired. Maybe life got busy, maybe you missed a reminder, or maybe you just weren’t using your car and forgot about it. Whatever the reason, we know it happens. The key is to act quickly and confidently. Here’s your step-by-step guide to getting back on the road safely (and legally):
First things first: do not drive. From the moment your policy expires, you have zero coverage, and it’s illegal to operate your vehicle without insurance.
Before contacting your insurance company, make sure you have your:
Your expired policy number
Vehicle details (make, model, year, VIN)
Your driver’s licence number
Your previous insurance documents or proof of past coverage
Having these documents and information ready will make the next steps much easier.
Reach out to your current provider or broker right away. As we've said, some insurance companies may allow you to reinstate your current policy for up to 30 days (may vary by company) by paying your annual premium. If this is the case, all you'll need to do is pay your premium. When you call, be prepared to have to explain to them why your policy lapsed. You'll also need to confirm that your vehicle hasn’t been driven since your policy expired. If you are allowed to reinstate, you can stop here. However, if you've passed the grace period, or if your insurance company does not offer one, you will need a new policy, and the gap in coverage on your insurance history means you'll see a much higher rate for this new policy.
You'll likely be required to fill out a new insurance application, even with your current provider. However, due to your lapse in coverage, your provider may decide to no longer offer you coverage. In that case, you'll need to shop around for a new policy from a different insurance company. Either your current or new provider will evaluate your risk profile, which will likely mean higher premiums, as missed payments and coverage gaps can put you into the high-risk category. If you are asked to provide a driver’s abstract or official record of your driving history, you can get it through your province’s licensing office, such as ServiceOntario.
Once you've been approved for new coverage, you’ll either pay for your annual premium or set up a monthly payment plan and make your first payment. Many insurance companies allow you to do this online or over the phone immediately, so that you can get back on the road as soon as possible.
Finally, make sure you receive and keep your new proof of insurance card. You'll need to update any apps or records in your glove box so you’re ready if you're stopped by police or involved in a car accident.
Unless you know someone who has been vocal about this happening to them, letting your car insurance lapse might feel like it's no big deal. But the truth is that not only are you illegally uninsured from the moment it expires, but the ripple effects can follow for years, leading to serious consequences. Here's what you can expect:
Insurance companies treat lapsed coverage as a major red flag. A gap suggests you might be riskier to insure, especially if your policy was cancelled for non-payment or other issues. Research shows drivers with short lapses (under 30 days) can face around an 8% increase in premiums, while longer lapses (over 30 days) can drive hikes of 35% or more.
In Canada, a long-term or continuous coverage history helps insurance companies assess your financial responsibility. Some provinces will penalize even a small lapse in coverage, and your rate increase will depend on how long the lapse was and why it occurred. For example, according to the Ontario Insurance Commission (OIC), insurance companies in Ontario cannot consider certain types of lapses in coverage, like choosing to cancel your policy for a few months, unless certain conditions apply. Specifically, they can only consider the lapse if:
You were caught driving without insurance during that gap
Your policy was cancelled because you didn’t pay your premiums
Your driver’s licence was suspended due to a driving conviction
You misrepresented your driving history (for example, hiding accidents or past convictions) to avoid higher rates
Since policies are typically set to automatically renew, letting your policy expire because you forgot to make your annual payment is treated like a missed payment cancellation, which means if your insurer does not offer a grace period, or if you've already passed it, your coverage gap is rateable when determining future premiums.
As we mentioned earlier, a lapse in coverage can also change how insurers classify you. For example, if you’re uninsured for even a short period, depending on the reason, some companies may treat you like a high-risk driver. That could mean limited coverage options, mandatory usage-based programs, or that you'd need to specifically look for an insurance company that offers high-risk car insurance.
Want to learn more about renewing car insurance after it's expired? Contact BrokerLink. Our expert advisors have been helping Canadians find quality car insurance policies since 1991, which means we know the ins and outs of the insurance industry. We can help you learn ways to save money on car insurance renewals and compare car insurance quotes to find the best coverage for your needs at the best price.
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 car insurance quote in minutes.
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