General Information  •  How Can I Pay Less for Car Insurance?  •  Find an Agent/Broker  •  Payment Options  •  Consumer Assistance  •  Brochure: Eng | Fr

Pay your insurance representative directly

As a rule, your insurance representative will require payment in
full in the form of cash, money order or certified cheque.  Some
insurance representatives may offer their own financing arrangements.

Monthly payment plans offered by insurance companies

Ontario and Newfoundland and Labrador

Monthly payment plans must be offered through your insurance company for private passenger vehicles in Newfoundland & Labrador and for private passenger vehicles, motorcycles, snow vehicles, all terrain vehicles, trailers, motor homes, camper units and historic cars in Ontario.

To be eligible for a monthly payment plan in these provinces, your annual policy premium must exceed $300 and you have had no more than one policy cancellation for non-payment in the past 3 years.  There is a maximum finance charge applicable based on provincial regulations.

To place your policy on monthly payment plan you may need to provide your insurance representative (Agent/Broker) with a down payment equal to two months of the policy premium. Also, your insurance representative may require a signed payment authorization form and a void cheque for an account with chequing privileges.  The remainder of the premium will be withdrawn from your account automatically in equal instalments on the same day each month.

If a withdrawal attempt fails, a non-sufficient funds (NSF) fee will be applied by your insurance company in addition to any charge levied by your financial institution.  Insurance companies may attempt to withdraw the instalment again a few days later.  If that withdrawal attempt fails, a second NSF fee will be applied and your policy will be cancelled by registered letter for non-payment.

To reinstate the policy, you will be required to pay the amount of the missed instalment, the NSF fee(s) and the amount of the next instalment to your Agent/Broker prior to the effective date of cancellation.  If this amount is not received before the cancellation takes effect, the policy cannot be reinstated and you will need to apply for a new policy.

Cancellation for non-payment may affect your continued eligibility for monthly payment plan.

Other Jurisdictions

Monthly payment plans may also be available for vehicles in other jurisdictions.  Applicable finance charges may vary from jurisdiction to jurisdiction.  Speak to your insurance representative to find out what options are available to you and how the payment plan operates.  

Premium Finance Companies

Your insurance representative may offer an option to finance the premium through a premium finance company. A down payment is required and the balance of the premium is collected via monthly instalments. Speak with your insurance representative to determine whether this option is available and how this method of premium financing will work for you. 

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