Yes, you can change your car insurance during the year. As an insured person, you have the right to cancel your car insurance contract at any time without having to justify your decision. You only need to send a written notice to your insurer.
However, if you terminate your contract before its expiry, cancellation fees may apply. Keep reading to learn everything about changing car insurance during the year!
Things to consider before canceling your car insurance
The right to cancel
In Quebec, you have the legal right to cancel your car insurance contract at any time, according to the rules set out in the Civil Code (Article 2477). This means you don’t have to wait for the annual contract renewal with your insurer to cancel.
Cancellation terms
Canceling a car insurance contract must follow a simple but structured procedure:
- Written notice: You must inform your insurer by signed letter or cancellation form. Many companies now also accept cancellation by email or through their client portal.
- Cancellation date: You can set a specific date for the contract to end. The cancellation takes effect upon receipt of your notice or on the indicated date, whichever comes later.
- Mandatory new insurance: You’ll need to provide proof that the vehicle is insured elsewhere, as car insurance is mandatory in Quebec.
Cancellation fees
Changing car insurance during the year may incur certain fees, although they are generally limited:
- Administrative fees: Your insurer may charge cancellation fees (usually around $25 to $50).
- Premium refund: Two methods are possible:
- Pro-rata: You only pay for the period during which you were covered, and the rest is refunded.
- Short-rate: The insurer retains a slightly higher portion of the premium as a penalty (less advantageous for you).
It’s therefore important to verify the exact terms in your contract before proceeding.
The obligation to get new car insurance
As mentioned above, car insurance is mandatory in Quebec. If you cancel your contract, you must have a new active contract without any coverage gap. This means you can’t remain uninsured, even for a few days.
💡Exception: If your vehicle is sold, taken out of service, or put in storage (plates returned to SAAQ), you can cancel without the obligation to get new insurance immediately.
How to choose the ideal time to change car insurance?
Consider the insurance contract renewal date
The renewal calendar plays a crucial role in choosing the right time to change car insurance. You should carefully check the information statement sent by your current insurer. This document contains the contract end date and the new proposed premium.
Legal notice periods vary by province, but generally, you must notify the insurer at least 30 days before expiry. Respecting these deadlines is essential to ensure continuous coverage without interruption.
The end of the insurance year is often the best time to make a change. It allows you to avoid cancellation fees and take advantage of the best market offers for a premium with a new insurer.
Anticipate upcoming premium increases
To anticipate a premium increase, you should carefully examine the information provided by your insurer. Reasons for an increase may include changes in your risk profile or recent claims.
For example, if you’ve had an accident during the year, your premium could increase significantly. By anticipating these price increases, you can decide to shop around earlier and potentially make significant savings.
Compare offers for a new rate
When shopping for new car insurance, you must compare the essential coverages offered by each company. Deductible levels are also very important to consider.
That’s why you should work with a broker like Gendron Insurance. Our brokers take care of getting you multiple quotes so you can see the best options on the market.
Determine your needs
Want to change car insurance? Start by clearly identifying your protection needs. Think about the type of coverage that suits your situation. The age and value of your vehicle are important factors to consider. Also think about how you use your car daily.
Do you drive a lot? Just for work? This can influence your insurance choice.
Don’t forget to look at possible exclusions in contracts. Depending on where you live in Quebec, certain risks might not be covered. Make sure you understand what is and isn’t included in your policy. The number and type of damages covered vary from company to company.
Gather information about your vehicle to insure
To get the best possible quote, you need to provide the right information to insurers. Start by noting all the info about your vehicle: make, model, year, etc. Your driving history is also super important. Insurers want to know if you’ve had any accidents or tickets.
Your driver profile will also affect the price. Have you been driving for a long time? Do you use your car for work? All this can make a big difference in the premium. Write it all down; it will help you moving forward.
However, be honest in your declarations to avoid unpleasant surprises later.
Notify current insurer and start cancellation
Once you’ve found a better offer, you need to communicate with your current insurance. You must inform them of your intention to end the contract at least 30 days before the desired end date.
During this process, you might have questions about your protection or remaining payments. Don’t hesitate to contact customer service for clarification. They can provide you with the cancellation code needed to finalize the transfer to your new insurer.
Change your car insurance with Gendron Insurance!
Have your car insurance premiums increased in recent years? It might be time to get quotes to compare! At Gendron Insurance, we offer car insurance solutions adapted to your needs. Our team of brokers guides you through the car insurance change process. We take care of everything to make your life easier.
Contact us today for a personalized quote!
Frequently Asked Questions about changing car insurance during the year
What happens if I cancel my car insurance before the renewal date?
You have the right to cancel your car insurance contract at any time. According to Article 2477 of the Quebec Civil Code, the cancellation takes effect upon receipt of the written notice by the insurer.
It’s important to note that if multiple insureds are named in the policy, each must sign the cancellation notice, unless one has been mandated to act on their behalf.
Do I have to pay fees if I cancel my car insurance contract prematurely?
Fees may apply if you cancel your contract before its term. These costs vary depending on the companies and circumstances of your cancellation. To avoid these penalties, respect the planned deadlines or justify a significant change in your situation.
Keep in mind that any off-term cancellation risks incurring additional expenses, so weigh your decision carefully.
Is there a deadline to respect when canceling a car insurance policy?
In Quebec, you can cancel your automobile insurance contract at any time, without having to respect a specific notice period. The cancellation takes effect as soon as your insurer receives your written notice. However, it is recommended to confirm with your insurer the receipt of your notice to avoid any coverage interruption.
