July 15, 2005
Auto insurance policies can be cancelled by broker
Toronto, Ontario – Many consumers are not aware that their automobile insurance policy has been cancelled by their broker and not by their insurance company, says the President of the Insurance Hotline.
“This has lead to a lot of heartache and confusion for consumers when
trying to replace their auto coverage with another insurance company,” said Lee Romanov, Insurance Hotline President.
“Instead of having to look around for “another insurance company” all they need to do is to change brokers and stay with their existing insurance company. If a person is being cancelled by their insurance company they will receive a letter by registered mail outlining the reason why. All insurance companies must file their conditions for cancellation with the government and the government must approve them, otherwise they can’t cancel someone. An insurance broker does not need a reason to non-renew someone’s auto policy.”