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Toronto Car Insurance: How Do I Change Policies?

If you have already paid for your car insurance on an annual basis, you can still consider changing policies by applying for a prorated refund from your old insurance company.

You can cancel your coverage mid-year if you have explored the other options from insurance providers who are offering a better quote and a more comprehensive policy. However, you might have to pay a cancellation fee based on what is outlined in your current insurance company’s policy.

Reasons to Change a Car Insurance Policy

There can be various reasons why you would want to change your current car insurance policy. Let us first have a quick look at why most people switch car insurance policies.

A Lifestyle Change

Certain permanent life changes can trigger someone to re-evaluate their insurance policies. Changes in your lifestyle can directly affect your insurance, such as getting married or divorced, leading to including or removing your spouse from the policy.

Getting a new job or an address change that requires you to drive more over long distances is also a reason people look at other insurance plans. Additionally, people who are starting their retirement often re-evaluate their auto insurance needs.

Bad Customer Experience

Customer experience is what drives most decisions around multiple products and services. Many people decide to switch to other service providers if they feel that their needs are not being met or the brand does not give them a unified or holistic treatment as customers.

Increase in Premium

The most significant factor that encourages many people to switch their insurance providers is if they have to pay more premium than they originally signed up for.

How to Change Your Car Insurance Policy

Many insurance providers allow you to get an auto insurance quote online so you can get a better understanding of all the current premiums that most companies are charging on average. However, not every quote is equal and still needs to be evaluated.

Write a letter or an email to ensure that you have a record of your cancellation request, including the requested termination date and the details of when your coverage would have originally ended. You should also double-check that your policy dates line up and that you have no coverage gaps.

Next, ask your insurance provider if their protocol requires policyholders to formally request it via another system apart from an email or a letter to make the cancellation official. Then, sign everything and keep copies of your cancellation request.

You should be aware that if you begin a new policy without cancelling your old one, and during that process, the old policy renews itself automatically, then you will be subject to penalties.

Changing Car Insurance Policies With New Drivers

If you’re adding a new driver to your existing policy, it might be the best time to consider a switch because some insurance providers treat new drivers differently than others. For example, your existing broker may have great rates for younger and newer drivers, but not so great deals for older age groups.

Changing Car Insurance Policies With a New Car

When you purchase a new car, it might be a great time to compare other car insurance quotes, as your current provider may not have great rates for older cars. You may find other providers who offer better rates and more coverage.

In addition, some insurance providers may be unclear about luxury or electric cars, while you may find another provider that discounts their car insurance rates to attract only luxury car drivers.

Understanding Prorating and Short-Rating


Prorating essentially means that your existing insurer prorates your refund when you cancel the policy, and you get back the portion of the insurance that you won’t be using.

Most policies last for one year. If you move cities in between and find another insurance provider, you can cancel your existing one and they will prorate the amount to you that was remaining.


You should first try to understand how your current insurance company would manage a refund. Short-rating means that they cut a penalty from any financial return. You need to make sure that your new policy is valid on the same date as when your other one expires so you do not end up paying for two policies at a given point in time.

You should also bear in mind that not paying for the other policy leads to a non-payment cancellation on your insurance record because that can work against your favour as a policyholder.

Contact the Professionals

With Marathon Insurance Group, you can get a quote tailored to your needs and lifestyle, depending on what type of car you drive and how experienced of a driver you are.

For more information about getting the right kind of car insurance in Toronto, call Marathon Insurance Group at 844-429-0837 or contact us here.

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