What Happens if You Miss a Car Insurance Payment in Canada?


    In Canada, missing a car insurance payment can lead to several consequences. Initially, the insurance company typically sends a notice advising of the missed payment and providing a grace period for payment. If the payment remains unpaid after the grace period, the insurance policy may be canceled. This cancellation not only leaves the driver without insurance coverage but also can result in a lapse on their insurance record, potentially leading to higher premiums in the future. Additionally, driving without insurance is illegal in Canada and can result in fines, license suspension, and vehicle impoundment. It’s crucial to communicate with the insurance company if facing difficulties making payments, as they may offer options like payment plans to prevent policy cancellation and legal repercussions.