What can void your car insurance in Ontario?

This article has been updated from a previous version.

Your car insurance can be voided if you provide false information, fail to disclose important details, or engage in risky behaviors like driving under the influence. These actions can lead insurers to cancel your policy, leaving you unprotected when you need it most. 

As a driver in Ontario, you need adequate insurance coverage for your needs. Something overlooked often is that maintaining coverage takes effort, too. It starts with knowing which actions can void your insurance policy.

What happens if your car insurance is voided?

When your car insurance is voided, it means your coverage is no longer valid, and the insurance company will not pay for any claims you make. Essentially, you’re left uninsured, which is illegal if you continue to drive. 

Insurers have specific procedures they must follow to cancel a policy, and these requirements depend on local regulations and the terms of your contract.

The required notice period differs by province. In Ontario, insurers are required to give 15 days' notice if the cancellation notice is delivered in person or 30 days' notice if it is sent by mail.

If your policy is voided and you need new coverage, you might still be able to shop around for a new plan. However, your insurance history plays a role in determining your future rates. For example, if your policy is voided due to non-payment, causing a gap in coverage, this may increase the cost of your next insurance policy.

Remember that specific terms and conditions can vary between insurance providers and policies, so always check the details of your individual policy.

Read more: In what situations can your car warranty become void?

What can void your car insurance?

Here are some common reasons that could lead to the voidance of your car insurance:

1.Driving under the influence

If you are caught driving under the influence of alcohol or drugs at the time of an accident, your insurance company may deny your claim and cancel your coverage.

2. Failing to report accidents promptly

You are typically required to report any accidents or claims within a specific timeframe. Failing to do so may jeopardize your coverage.

Related: How to file a car insurance claim after an accident

3. Not paying your premiums

Missing even a single payment can lead to policy cancellation. Insurers typically provide a grace period or notice before voiding the policy, but consistent non-payment is a major red flag.

4. Misrepresentation or fraud

Providing false information or intentionally withholding relevant details when applying for insurance could lead to the voiding of your policy. This includes inaccurate information about your driving history, the use of the vehicle, or your personal details. Fraudulent claims, like exaggerating damages, are also grounds for cancellation.

5. Negligent or reckless driving

Engaging in reckless or negligent driving behaviour, such as excessive speeding, aggressive driving, or participating in illegal street racing, may void your insurance coverage.

6. Licence suspension or revocation 

Driving with a If your driver's licence is suspended or revoked and you continue to drive, any accidents that occur during this period may not be covered.

7. Unapproved use of the vehicle

If your policy is designated for personal use, using your vehicle for commercial purposes—such as driving for a rideshare company—without notifying your insurer could void your coverage.

8. Unapproved vehicle modifications 

Making significant modifications to your vehicle without notifying your insurance company may result in your coverage being voided. Examples include engine modifications, changes to the suspension, or alterations that affect the safety and performance of the vehicle.

9. Unauthorized drivers 

If someone not listed on your policy regularly drives your car and gets into an accident, your coverage may not apply. You must add them to your policy as a secondary driver. An insurance company could deny a claim if you haven’t listed all the drivers on your car insurance policy and one of them gets in an accident.

Learn more: Primary vs. secondary driver: How does it influence your rate?

What can you do if your insurance is voided?

If your car insurance is voided, your policy is no longer valid. This can happen for reasons such as missed payments or failing to disclose important information. While it can be stressful, there are steps you can take.

Start by identifying the reason your policy was voided. If it was due to something like non-payment or missing details, contact your insurance company immediately. You may be able to correct the issue and have your coverage reinstated.

If reinstatement isn’t possible, begin searching for a new insurance provider. Be transparent about your insurance history—some companies may still offer coverage, especially if the issue has been resolved.

If you're unable to find coverage through standard insurers, you may qualify for high-risk insurance through programs like the Facility Association Auto Insurance. These policies are typically more expensive but can provide the coverage you need when other options are unavailable.

Your available options will depend on your location, driving record, and the reason your policy was voided. Acting quickly, being honest with insurers, and maintaining safe driving habits can help you recover from the situation and avoid future complications.

Learn more: Should you pay your insurance premium annually or monthly?

How to avoid having your insurance voided

The best way to deal with a voided policy is to prevent it from happening in the first place. Here are a few key practices to help you stay protected:

• Review your policy documents carefully so you understand your responsibilities and coverage limits.
• Report any changes to your insurer right away—this includes moving to a new address, modifying your vehicle, or adding new drivers.
• Pay your premiums on time to avoid cancellation due to non-payment.
• Be honest and accurate when providing information to your insurer. Misrepresentation or leaving out important details can lead to your policy being voided.

Keeping your insurer informed and staying on top of your policy requirements can go a long way towards maintaining continuous, reliable coverage.

Related: The best way for high-risk drivers to get car insurance