Cancelling your car insurance policy
Looking to cancel your car insurance policy? Before you do, read through some common cancellation reasons below and learn how Square One can help solve them. If you still wish to cancel, send us an email with your cancellation request.
Looking to cancel your home insurance policy instead? Learn more about some common cancellation reasons, what you can expect, and how Square One can help.
“I want to reduce my expenses”
If you’re finding car insurance too expensive, send us an email and an agent can help you find ways to reduce your premiums. Since car insurance is mandatory by law, you’ll need to maintain at least some coverage to keep driving your vehicle.
“I want to bundle my insurance”
Bundling your home and car insurance can save you a lot of money. Great news! You can buy both your home and car insurance with Square One, and you’ll get up to 5% off your car insurance premiums if you do. You can get started with an online home insurance quote — it only takes 5 minutes.
“I received poor service”
Customer service is of the utmost importance at Square One. If you’re having a poor interaction with our company, please let us know by sending an email. We promise to address all your concerns and make things right.
“I’m moving to a new home”
If you’re moving to a new home within the same province, you can update your address by logging in to your online account. Then, select your car insurance policy and choose “Update policy;” the system will guide you from there. If you’re moving to another province, send us an email. If we cannot offer coverage in your new province, we can let you know when that becomes an option.
“I bought another car”
If you’ve purchased a new vehicle, you can make the necessary changes to your insurance coverage by logging in to your online account. Then, select your car insurance policy and choose “Update policy” and the system will guide you through the process of adding your new vehicle or removing your old one—no need to cancel your policy outright.
“I’m buying a different policy”
Whether you’re changing vehicles or you just want to change some of your coverage selections, you may find it easier to simply update your existing policy. To do so, just log in to your online account, select your policy, then choose “Update policy.” If you’re planning to buy a policy from a different provider, send us an email; we’ll be happy to see if we can offer something better.
What to expect when cancelling
You can cancel your policy at any time.
The easiest way to cancel is to email your cancellation request to info@squareone.ca. If you prefer, you can contact an agent by phone at 1.855.331.6933 to process the cancellation. To cancel your policy, we’ll need consent from each named insured.
After cancellation, refunds are returned to the original payment method. For credit cards, refunds are processed the day the cancellation takes effect. If you paid through bank withdrawal, your refund will be processed either the day the cancellation takes effect or 10 days after your payment was withdrawn from your bank account. Generally, it can take up to a week for the refund to show in your bank account after Square One has processed the cancellation.
In Ontario, the amount you will receive as a refund depends on whether you cancel before or after the policy goes into effect.
If you cancel before the policy takes effect
If you need to cancel your policy before the effective date, you’ll receive a full refund minus a $50 Minimum Retained Premium, or MRP.
The MRP is the smallest amount of money that an underwriter requires when writing a new policy. This non-refundable amount helps cover data costs, banking or credit card fees, and other one-time costs associated with new policies. Insurance regulations permit underwriters to set MRPs, use short-rate calculations (as described below), or both.
The MRP does not apply to policies in Quebec.
If you cancel after the policy takes effect
If you cancel your policy any time after it goes into effect, but before the policy term ends, your refund will be calculated on a short-rate basis. Policies in Quebec are always refunded on a short-rate basis (no MRP), regardless of the effective date.
Short-rate basis means that you’ll receive a refund of all unearned premiums, less a penalty. When you’ve pre-paid your premiums, unearned premiums are the portion representing the duration of the policy term that has not yet passed.
For example, if you pay $1,200 for one year of coverage, and cancel after 8 months, $800 is “earned” and $400 is “unearned.” With a short-rate refund, you’d receive $400, minus the penalty. At Square One, the penalty is between 1 and 5%, depending on how much time remains in the policy term (the penalty decreases as time passes).
This short-rate penalty covers an insurance provider’s administrative costs for issuing and cancelling the policy.
Like MRPs, short-rate cancellation penalties are permitted by the Insurance Act and are standard practice in the car insurance industry.