Nearest broker: Searching for a broker nearby…
Nearest broker: 2607 Ellwood Dr SW, Edmonton, AB, T6X 0P7 Phone: 780-732-8616 10060 Jasper Ave, Edmonton, AB, T5J 3R8 Phone: 780-435-3632 , Calgary, AB Phone: 403-532-4882 322 Avenue C S, Saskatoon, SK, S7M 1N4 Phone: 639-398-4170 10325 Bonaventure Dr SE, Calgary, AB, T2J 7E4 Phone: 403-695-1050 5317 50 Ave, Taber, AB, T1G 1V3 Phone: 403-223-2377 110a McLeod Ave, Spruce Grove, AB, T7X 2H8 Phone: 780-571-1144 496 Marquis Rd, Prince Albert, SK, S6V 8B3 Phone: 306-970-8080 335 Hwy Avenue N, Picture Butte, AB, T0K 1V0 Phone: 403-732-6023 103-5020 Lac St Anne Trail S, Onoway, AB, T0E 1V0 Phone: 780-967-2282 2201 Box Springs Blvd NW, Medicine Hat, AB, T1C 0C8 Phone: 403-487-5132 550 Wt Hill Blvd S, Lethbridge, AB, T1J 4Z8 Phone: 403-394-1123 734 13 St N, Lethbridge, AB, T1H 2T1 Phone: 403-328-9114 5 St SE, High River, AB Phone: 403-652-4104 9901 103 St, Fort Saskatchewan, AB, T8L 2C8 Phone: 780-998-0881 , Edson, AB, T7E 1T6 Phone: 780-440-0075 16612 109 Ave NW, Edmonton, AB, T5P 1C2 Phone: 780-486-4488 201-4271 23 Ave NW, Edmonton, AB, T6L 5Z8 Phone: 780-466-2136 3908 97 St NW, Edmonton, AB, T6E 6N2 Phone: 780-465-6900 8170 50 St NW, Edmonton, AB, T6B 1E6 Phone: 780-469-9378 52 Ave, Drayton Valley, AB Phone: 780-621-1707 264 Midpark Way SE, Calgary, AB, T2X 1J6 Phone: 403-251-2926 1331 Macleod Trail SE, Calgary, AB, T2G 0K3 Phone: 403-278-1050 1331 Macleod Trail SE, Calgary, AB, T2G 1E1 Phone: 403-255-2252 234-7 Westwinds Crescent NE, Calgary, AB, T3J 5H2 Phone: 403-775-2100 , Calgary, AB, T3K 0S8 Phone: 403-719-9995 4632 70 St NW, Calgary, AB, T3B 2K6 Phone: 403-247-6435 5114 2 St, Boyle, AB, T0A 0M0 Phone: 780-689-3946 50 Ave, Bonnyville, AB Phone: 780-826-3147 12931 20 Ave, , AB, T0K 0E0 Phone: 403-562-2191 2903 Kingsview Blvd SE, Airdrie, AB, T4A 0C4 Phone: 403-945-8885

What can void a car insurance policy in Alberta?

Auto Insurance

By Joanne Lemna | September 6, 2017

There are a number of things that can void a car insurance policy in Alberta, including:

  • Lying on your insurance application
  • Failing to notify your insurer of a significant change
  • Failure to provide a vehicle inspection or salvage report
  • Lying or misrepresentation with regards to a claim
  • Being abusive to staff
  • Serious driving violations
  • Illegal activity
  • Using your personal vehicle for commercial purposes
  • Not paying your insurance premiums

While some of these are pretty obvious, others may be surprising. We will explain each of these reasons why an insurance company may choose to void a car insurance policy in Alberta.

Remember, this is a general guide. Every insurance company is different. Read your policy documents and talk to your broker for details specific to your situation or if you have any questions.

Lying on Your Insurance Application

Unfortunately, there are some people who lie on their insurance application, often as an attempt to get a lower insurance premium. Lying on an insurance application can include:

  • Failing to complete the application
  • Failing to produce requested documents
  • Lying or misrepresenting on the application

If you are found to have lied on your insurance application, your policy can be voided by your insurer. You may also owe money to the insurance company if you received any payments from them.

Failure to Notify of a Significant Change

Your broker and insurance company should be notified of significant changes that could affect your insurance. This ensures the validity of your policy and can sometimes save you money. Significant changes to a car insurance policy include:

  • Changes to the use of the vehicle, including commute distance
  • If you’ve moved
  • Number of drivers operating your vehicle and their status
  • Modifications to the vehicle
  • A change in the principal driver
  • If the vehicle is garaged outside of Alberta
  • If the vehicle is being driven outside of Alberta for more than six months consecutively

Minor changes you should let your broker and insurer know about include changes to your contact information and your occupation.

Failure to Produce a Vehicle or Salvage Inspection

Most insurance companies will ask you to provide a vehicle inspection once your vehicle reaches a certain age. If this is not provided or you do not complete the requested repairs your insurance policy can be voided. This also applies to vehicles that were listed as total losses and are now considered salvage – while you can certainly repair the vehicle you also must provide a salvage motor vehicle inspection certificate. Failure to do so can also see your policy voided.

Lying With Regards to a Claim

If you lie, are misleading, or fail to provide information with regards to a claim you are at risk of your claim being denied and/or your car insurance policy being voided.

Abusive to Insurance Staff

Some insurance companies will void your policy if you become verbally or physically abusive to any of their employees or contractors.

Serious Violations

If you have a criminal code conviction or serious traffic safety conviction your policy can be voided. This is not always the case and will depend on your insurer, policy, and the violation.

Illegal Activity

Any illegal activity involving your vehicle will void your policy. This includes automobile insurance fraud.

Using Your Car for Business or Commercial Purposes

As long as you inform your insurance company, commuting is normally covered under a personal vehicle insurance policy. However, doing anything more work-related may not be covered. This includes:

  • Transporting employees
  • Transporting passengers or goods for money
  • Transported work-related equipment
  • Deliveries
  • Installing work-related equipment on your vehicle
  • Visiting clients or work sites
  • Renting or leasing your vehicle to others

If you’re found to be using your vehicle for commercial purposes, you may find that your insurer can void your personal car insurance policy.

You probably wouldn’t think much of using your vehicle to drop off something work-related or maybe you even use your vehicle for your day-to-day business. If that’s the case you should talk to your broker about a commercial vehicle insurance policy.

Non-Payment

Finally, the most obvious thing that can result in your policy being cancelled is non-payment. Generally, one missed payment may not result in cancellation – you’ll receive reminder notices and you may have to pay an additional fee. But this isn’t usually an issue if you pay what you owe immediately. However, you miss multiple payments you may be cancelled for non-payment.

Every insurance company is different when it comes to tolerance and policies for non-payment. While a non-payment may not void your policy it certainly can cause your policy to cancel and create problems for you when you try to get insurance again.

While this isn’t an exhaustive list it’s a good start to being aware of what can void or cancel your car insurance policy in Alberta. Remember to contact your broker about any major changes and always be honest with them.

Get A Quote From A-WIN

Get the best insurance deals and stay on budget.

Get A Quote

Life Events - It's Time to Reassess Your Insurance

Whether it’s heading off to university or deciding to start your own business,...

Download