Question 13:   My insurance company has notified me that I have been insured through the Facility Association. What does this mean?

The Facility Association is an unincorporated non-profit association of insurers that was established to ensure the availability of automobile insurance to drivers who are unable to obtain coverage in the regular market. All insurers licensed to write automobile insurance business in the province are required to become members of Facility Association and share in its experience.

When an insurer writes a policy through Facility Association, it generally means that it considers the policy to be “high-risk” based on the characteristics of the drivers and/or vehicles to be covered. High-risk drivers may include those who have had a number of at-fault accidents or convictions, had a prior policy cancelled due to non-payment, or experienced a lapse in insurance coverage of greater than 24 months. High-risk vehicles may include those that have been heavily modified, or are of a certain age and do not include an inspection certificate.

The underwriting guidelines used to determine if a driver or vehicle is “high-risk” can vary from one insurer to another. It is important to shop around, get multiple quotes and compare prices from different companies to ensure you are getting the best deal.

For more information about the Facility Association, please visit their website here: http://www.facilityassociation.com/