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Facility Association Insurance

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About Facility Association insurance

The Facility Association is an entity established by the automobile insurance industry to ensure that automobile insurance is available to all owners and licensed drivers of motor vehicles where such owners or drivers are unable to obtain automobile insurance through the voluntary insurance market.

The Facility Association is an unincorporated non-profit organization of all automobile insurers serving the following provinces and territories:

Alberta, New Brunswick, Newfoundland & Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Yukon.

Every insurer licensed to write automobile liability insurance in any jurisdiction Facility Association serves is required to become a member and remain a member of the Association.

Facility Association’s mission is to administer automobile insurance residual market mechanisms, enhance market stability, and guarantee the availability of automobile insurance to those eligible to obtain it. We strive to keep the market share of the residual markets as small as possible, so consumers may benefit from the competitive marketplace to the greatest extent possible.

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What does the Facility Association offer?

The Facility Association differs from a regular insurance company on a few counts:

  • It doesn't issue insurance policies.
  • You can't call the Facility Association and ask for a quote.
  • It doesn't advertise its services.

The Facility Association underwrites high-risk auto insurance policies. It relies on other insurance providers (usually those specializing in high-risk insurance products) to issue policies and handle claims.

Through a broker, you’ll be able to access a non-standard auto insurance policy, which is a policy that is designed specifically for high-risk drivers.

Very few drivers in Canada have Facility insurance. It is where drivers who have been denied coverage elsewhere go because they pose an abnormal amount of risk to insure or because they’re looking to insure a car that has been heavily modified.

The insurance term to describe the Association's clientele is "non-standard."

The insurance coverage provided in a non-standard policy is different from the coverage offered in a standard one:

  • There's a limit on how much third-party liability coverage you can buy. It’s usually capped at $1 million.
  • The insurer will add exclusions to the policy that affect the main driver, any listed drivers, and any other licenced driver living in the same household.
  • You have fewer options to pay your premium. You’ll likely be asked to pay it all upfront.

Insurance companies across Canada pool together their resources to underwrite these non-standard policies. The Facility Association charges the highest rates in the marketplace. Your insurance broker or agent is your representative, and make your payment through them.

You may be required to pay your premium in full in cash, money order, or certified cheque. Given how high premiums are, you may need to seek financing.

The Facility Association accepts payments from specialized loan companies. Premium financing lenders provide drivers funds to cover an insurance premium's cost. It's common for a premium financing lender to require a down payment.

You might also be able to negotiate a monthly payment plan. This is only an option if you've only had one insurance company cancel your coverage due to non-payment within the last three years. You're charged a financing fee on top of your monthly payments.

Recent auto insurance rates from the Facility Association

Facility Association premiums can often be at least two to three times higher than the provincial average. The number of drivers who turn to the Association is small, though. The Association only accounts for 0.4% of the Ontario's insurance industry's total business. In Alberta, it's even smaller at just 0.2%.

In provinces with private insurance markets, insurance providers must apply for approval to change the rates they charge customers and provide a rationale for the change. Below are recent rate approvals that show the direction of travel of Facility rates.

Ontario

  • +12.8% (effective Jun. 1, 2022)
  • 0.00% (effective Jan. 1, 2020)
  • 0.00% (effective Aug. 1, 2018)

Source: Financial Services Regulatory Authority of Ontario

Alberta

  • 0.00% (effective Jan. 1, 2022)
  • 0.00% (effective Sep. 1, 2021)
  • -0.01% (effective Oct. 1, 2020)
  • 0.00% (effective Nov. 1, 2019)

Source: Automobile Insurance Rate Board

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Contact information for the Facility Association

Need to get in touch with the Facility Association? The association recommends contacting an insurance broker or agent first.

The association isn’t a consumer-facing company — it underwrites high-risk auto insurance policies and relies on other insurance providers (usually ones with their own high-risk insurance products) to issue the policies and handle claims.

If you need a new insurance broker, apply for a quote on RATESDOTCA. We will connect you with an insurance broker with knowledge of high-risk auto insurance and the Facility Association.

Below is the Facility Association’s general contact information.

Address: 777 Bay St., Toronto, ON M5G 2C8

Phone: (416) 863-1750

https://www.facilityassociation.com/Home/Contact

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Frequently asked questions about the Facility Association

What is the purpose of the Facility Association?

The Facility Association exists to provide car insurance to drivers in Canada who have been refused coverage by mainstream insurance companies.

Suppose you've accrued several driving infractions and have a spotty insurance history to boot. In that case, insurance companies will likely be hesitant to insure you. However, since you can't operate a car without it, you technically can't be denied insurance (this doesn't apply if your licence is currently revoked).

The Association will step in to underwrite your insurance policy, but it isn't a traditional insurance company.

The day-to-day activities of an insurance company are outsourced by the Facility Association. It relies on member companies (usually insurance companies that offer high-risk insurance) to issue policies, collect premiums, and handle claims.

The coverage provided by the Facility Association is funded by membership fees. Joining is compulsory for car insurance companies in these provinces and territories: Alberta, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, and the Yukon.

The Association doesn't provide insurance to B.C., Manitoba, Saskatchewan, and Quebec since these provinces have public insurance.

If you've been referred to the Facility Association, don't despair. The Association aims to help drivers improve their insurance histories by providing access to it.

Be proactive and use the opportunity to rehabilitate your reputation with insurance companies — and eventually access lower rates — by abstaining from:

  • Breaking traffic laws.
  • Getting traffic tickets.
  • Paying your premium late.
  • Driving while impaired.

As for what you should do, being accident-free for six years or more will help you secure a lower premium, as will being free of any traffic tickets for at least three years. Additionally, taking a driving course demonstrates that you're serious about changing your habits.

What is facility insurance in Ontario?

The Facility Association is the insurance provider of last resort to drivers in Ontario.

It provides coverage to drivers who have been denied coverage by traditional insurance companies because of their driving and insurance histories.

The rates offered by the Association are much higher than the average rate in Ontario – usually about two to three times higher.

The Facility Association usually requires drivers to pay their annual premium upfront.

It's sometimes possible to negotiate a monthly payment plan. This is an option if you've only had one insurance company cancel your coverage due to non-payment within the last three years. An administration fee is tacked onto monthly payments, making this route a bit more expensive than paying outright.

Is Facility insurance the only insurance offer to non-standard drivers?

No, Facility insurance isn’t the only option for drivers with poor driving and insurance histories.

Several other companies offer what’s known as “non-standard” insurance for drivers who’ve been flagged as high risk to insure:

  • Echelon Insurance
  • Economical Insurance
  • Intact Insurance
  • Perth Insurance
  • Pafco
  • Desjardins

Some insurance agents might automatically recommend going to the Facility Association.

But this isn’t always a good idea.

Facility rates are usually the highest in the market. Getting quotes from the six companies listed before signing up for Facility insurance is a better idea — you’ll likely be offered a lower rate.

You can apply for high-risk auto insurance quotes on RATESDOTCA.

Another thing to be aware of is that Ontario has an all-comer rule. Insurance companies can’t refuse you coverage since auto insurance is mandatory. Their price might be unaffordable, but you can’t be denied a quote.

Is the facility Association a for-profit?

No. The Facility Association is an unincorporated non-profit association of insurers.

Even though the rates it charges are incredibly high, it’s geared to the level of risk you currently present.

Insurance companies plan for the future; unfortunately, history tends to repeat itself. Insurance companies need to have enough in their coffers to potentially cover the costs inflicted by risky drivers with track records of expensive claims.

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