How to cancel your Quebec insurance contract?

Here are the steps to follow to cancel your insurance:

Check the terms and conditions for cancelling your insurance contract, which are normally specified in the general or specific conditions of your contract.

Contact your insurer to inform them of your intention to cancel your contract. You can do this by phone, registered mail or email. Be sure to provide all the necessary information, such as your insurance policy number and the date you want the cancellation to take effect.

Cancellation fees

If you have to pay a cancellation fee, make sure you pay it. The amount of the fees may vary depending on the insurer and the type of insurance contract.

If you have taken out an insurance policy for a fixed period, check that the cancellation does not expose you to a penalty.

Ask your new insurer to provide you with a certificate of insurance so that you are in good standing in the event of an inspection.

To cancel your insurance contract in Quebec in 2023, it is important to check the terms and conditions of termination of your contract, contact your insurer, pay any cancellation fees, check that the cancellation does not expose you to a penalty and ask your new insurer for a certificate of insurance.

What is the difference between short-term or pro-rata terminotion?

Short-term termination and pro-rata termination are two different concepts in insurance.

Short-term termination consists of terminating an insurance contract before the scheduled expiry date. In this case, the insurer may apply cancellation fees, which are generally provided for in the general or specific conditions of the contract. Cancellation fees can be fixed or proportional to the amount of the remaining insurance premiums.

Prorated termination, on the other hand, consists of terminating an insurance contract and requesting a refund of the premiums paid for the remaining period of coverage. In this case, the insurer calculates the amount of premiums to be reimbursed based on the time remaining until the expiry date of the contract. The amount refunded is prorated to the premium paid for the unused coverage period.

Short-term termination is an early termination of the contract with possible termination fees, while prorated termination allows you to recover part of the insurance premium paid for the unused period.

How to insure yourself after being cancelled for non-payment?

If you have been terminated for non-payment of your insurance premium, this may have a negative impact on your ability to obtain new insurance. However, there are several options to obtain insurance despite this termination for non-payment.

1. Find an insurance broker: Insurance brokers are insurance experts who can help you find insurance after a non-payment cancellation. They can work with multiple insurers to find insurance that suits your needs and budget.
2. Request reinstatement: If the cancellation for non-payment has occurred recently, you can contact your previous insurer to see if it is possible to reinstate your insurance contract. This may be possible if you pay the outstanding premiums and cancellation fees.
3. Opt for non-standard insurance: Non-standard insurers often offer insurance for people who are considered to be at high insurance risk, such as those who have been terminated for non-payment. Insurance premiums for non-standard policies may be higher than for standard policies, but this option may allow you to get insurance despite your cancellation for non-payment.
4. Explore insurance options in Canada: In some areas, governments offer insurance programs for people who have difficulty obtaining insurance. These programs may have specific eligibility requirements, but may be an option to consider if you have been terminated for non-payment. In Canada, it is the Insurance Bureau of Canada (IBC) that takes care of cases that insurers no longer want.

In summary, to obtain insurance after a cancellation for non-payment, you can contact an insurance broker, request reinstatement, opt for non-standard insurance or contact the IBC. It is important to compare insurance offers to find the one that best suits your needs and budget.