How to Switch Insurance Companies in Canada

Updated

Share:

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest

Insurance is a kind of protection from financial loss or life. It is a risk management tool used to evade the risk of an emergency or uncertain loss. There are different types of insurance ranging from

  • Car insurance

This is a compulsory insurance policy and could offset the cost of repair for your car in case of an accident.

  • Health insurance
  • Life insurance
  • Disability insurance
  • Home insurance
  • Credit and loan insurance

Life insurance is usually gotten from a licensed insurance agent. You can procure travel and health insurance from travel agencies, banks, and automobile associations. Your credit card issuer can also provide you with travel insurance when you use your card for a trip. You can buy insurance via;

  • A registered insurance broker
  • A licensed insurance agent
  • A loan lender
  • An insurance company

Also, you can procure credit card balance insurance and loan insurance at your bank. You can get your insurance

  • Online
  • In-person
  • Over the phone

You might get a discount if you procure more than one insurance policy from the same company. You do not have to be stuck to a particular insurance company if their policy does not benefit you. There are several reasons why a person might consider switching insurance companies. Whatever your reasons are, below are a few things to consider before making that switch. Many things could go wrong if you make a mistake.

  • Multiple Policy Discounts

If you have more than one insurance policy at your current provider, consider the discount that comes with running multiple policies with one provider. It is rational to move all your policies to a new provider to continue receiving the multiple policy discounts.

  • Run Background Check

Ensure you run a background check on any company you are planning to switch to. Several new companies are springing up that might not have the experience or recourse to provide the coverage required in case of an accident or if a disaster strikes. Most importantly check their rates; there are several tools available online you can use to check several insurance rates. Compare and get quotes from different companies if you can. Cheaper is not always better, ensure the company provides all the coverage you need.

Informing your Insurance Agent/Company

Make sure your new policy is active before you cancel. It is good to inform your old provider when canceling your insurance in Canada, do it in writing. A written letter or email ensures you have a copy of the request, the termination date and when your insurance coverage will elapse. By informing them promptly, you also want to ensure that your policy dates match and there are no coverage gaps.

You can contact your provider if there are any specific or formal requests you’re required to do to make the cancellation official. Ensure to append your signature regardless of if it’s their form or your letter. Note that if you commence your new policy without canceling your old one and it is automatically renewed, you may be fined. Or have to deal with bulks of paperwork to rectify it.

Can I get a refund if I cancel my insurance?

Getting a refund from your insurance company when you cancel depends on the terms and conditions of your policy. There are two things to consider when canceling your insurance in Canada, they are:

  • Window Period

There is a 14-day window period for cancellation in Canada if you procure your insurance online or over the phone from the day after you sign the contract. You are entitled to this grace period under the Financial Services (Distance Marketing Regulations) 2004. Note that if you have a claim already in the first 14 days, your insurance company can remove the amount paid out from the refund of the premium. If there are no claims, you will be entitled to a refund, with a deduction for the time you were covered for by your insurance company.

  • Cancel Outside Your Window Period

You are entitled to a refund of your premium if you cancel outside the 14-day window period. Note that this will be subject to a pro-rata deduction based on the time you were covered. Also, there might be a cancellation fee. You may not be entitled to a refund if you make monthly installment payments. You might be required to pay an additional premium to include the time you were covered, as well as the cancellation fee.

Related Posts

Post Comments

Leave a Comment

Your email address will not be published. Required fields are marked *

Essential reads, delivered weekly

Join the Financial Literacy Train. Get the latest financial information delivered right to your inbox.

Newsletter

Deals and Offers

We’ve rounded up the Best life in Canada, with the best promotions, and the best sign-up bonuses, to help you maximize your benefits.

EQ Bank US Dollar Account

Earn more on your US dollars

World Elite Mastercard

A card for travelling with exclusive perks

Platinum Mastercard

Earn 1 point for every dollar spent

Reviews

Post Comments

Leave a Comment

Your email address will not be published. Required fields are marked *

Advertiser Disclosure

Canada Buzz is an advertising-supported blog. Some products and services that appear on this site are from companies from which Canadabuzz receives compensation. We may alter brand placements on our website to amplify our partners and their offers. Any time you click to our partner websites or register for a product or services through an affiliate link on our website, we may earn a commission at ZERO cost to you.

Canada Buzz is a purely informational blog. Opinions expressed on this blog are NOT endorsed by the reviewed brands. The information provided on this website does not constitute financial or professional advice. However, our team strives to bring you quality, unbiased information.

Adageorge

Highlights

Avid researcher, freelance writer, and personal finance enthusiast passionate about financial education and literacy.

Latest Post

Kareena Maya

Personal Finance and Travel Rewards Expert Contributor

Highlights

Experience

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.