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Auto Insurance Reinstatement Before Cancellation Becomes Effective
An auto insurance policy can only be reinstated if your car insurance company receives all outstanding insurance premiums, including a reinstatement fee, before the effective cancellation date.
Auto Insurance Reinstatement After Cancellation Becomes Effective
An auto insurance policy will not be reinstated once the cancellation has become effective. You would need to start a new auto insurance application.
What Does It Mean to Reinstate Your Insurance?
Reinstating your car insurance means to restore your auto insurance policy to its former condition, wherein insurance coverage is in force.
In Ontario, drivers who receive letters of cancellation for non-payment of the premium may be in a position to reinstate their car insurance policy.
A letter of cancellation is a warning that the outstanding premium requires payment within a set time frame for the official reinstatement of your auto insurance policy.
Cancellation due to non-payment may be rescinded if full payment is received by the auto insurance company before the effective date of the termination of insurance coverage. Payment must be made in guaranteed funds.
If you’ve had your auto insurance policy canceled more than once in the last 3 years, most high-risk insurance companies will not reinstate your policy. This will negatively impact your payment options, even while in the high-risk car insurance bracket.
Getting Car Insurance Reinstated After Cancellation
Once an auto insurance policy is canceled you cannot reinstate the policy. You will have to start a brand new auto insurance application. Earned premium (time on risk) and any fees from the previous term must be paid to that auto insurance company.
Any outstanding balance owed would need to be paid in full with guaranteed funds before the auto insurance policy can be reinstated.
If you’ve been canceled for non-payment within three years or received a second returned payment (NSF) in your policy term, the auto insurance policy can be reinstated on a full payment basis only.
A third cancellation for non-payment notice in a 12-month policy-period usually guarantees that the auto policy will be canceled, whether or not the outstanding premium is received.