CAA InsuranceCancellation Fee Guide

CAA Insurance Company began operating in 1974 and is owned by CAA Club Group, formed in 2016 by the merger of CAA South Central Ontario and CAA Manitoba, two not-for-profit member automobile clubs; it has no public shareholders. As of September 2026 the two clubs report more than two million members in South Central Ontario and 200,000 in Manitoba; CAA Insurance does not publish a policyholder count or premium figure. Its head office is in Thornhill, Ontario, and its site lists seven provinces where it sells insurance: British Columbia, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia and Prince Edward Island. Policies are sold to members and non-members, through CAA's own channels and through independent brokers. CAA Club Group also owns Echelon Insurance, which is cancelled on the same standard table but with a $100 minimum retained premium on auto policies.

For early cancellations of auto policies CAA applies the standard industry short rate table: 8% of the annual premium is retained for a cancellation in the first three days, rising to 100% at day 354. There is no separate cancellation fee. The schedule on this page is CAA's auto table; for a home policy, confirm the cancellation basis with CAA before cancelling.

How CAA calculates your cancellation fee

The standard table starts by keeping 8% of your premium for a cancellation in the first three days — meaning you get a 92% refund — and rises to 100% (no refund) at day 354. Read the row for your days in force, take the retained percentage, and subtract it from your annual premium.

On a $1,200 policy cancelled after 90 days, CAA keeps about 31% ($372), leaving an $828 refund. A pro rata refund would return roughly $904, so the short rate penalty here is about $76: the table retains 31% while 24.7% of the policy year has elapsed.

How CAA compares

CAA's percentages are identical to the standard industry table on every day of the term: 15% retained at day 30, 31% at day 90, 54% at day 180 and 86% at day 300, against 8.2%, 24.7%, 49.3% and 82.2% under a pro rata split. At day 90 the insurers that use their own schedules retain more: Intact 34%, TD and Desjardins 36%. The full schedule is on our short rate table.

Not every cancellation is short rate: CAA's rules list situations that are refunded pro rata instead, such as a cancellation initiated by the insurer. The list is CAA's own, so ask which basis applies when you request the quote.

Before you cancel

• • The gap narrows over the term — the difference between short rate and pro rata is 6.8 points of the annual premium at day 30, 4.7 points at day 180 and 3.8 points at day 300.
• • Membership and policy are separate — CAA Insurance does not require a membership, but member discounts are tied to an active one; CAA can confirm how ending either affects the other.
• • Continuous coverage — the cancellation takes effect on the date you specify and premium is charged up to that date; a replacement policy starting the same day avoids a gap in coverage.