Echelon InsuranceCancellation Fee Guide
Official short rate table and cancellation fee calculator for Echelon Insurance specialty and non-standard policies
Quick estimate
Auto scheduleRefund $828
Echelon Insurance was founded in 1998 as Echelon General Insurance Company and took its current name in 2015. On May 31, 2019 it was acquired by CAA Club Group, the not-for-profit organization made up of CAA South Central Ontario and CAA Manitoba, which also owns CAA Insurance Company. Echelon is federally regulated, has its head office in Mississauga, Ontario, and writes non-standard and specialty personal lines (automobile, motorcycle, recreational vehicles and specialty property) and commercial lines across Canada. It reported about $720 million in gross written premium as of late 2022 and does not publish a customer count. Its policies are sold exclusively through independent brokers.
For early cancellations of auto policies Echelon 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, with a minimum retained premium of $100. There is no separate cancellation fee.
How Echelon calculates your cancellation fee
The standard table keeps 8% of your premium for a cancellation in the first three days and rises to 100% at day 354. Find the row for your days in force, take the retained percentage, and subtract it from your annual premium; if the result is below $100, Echelon retains $100.
On a $1,200 policy cancelled after 45 days, Echelon keeps about 19% ($228), leaving a $972 refund — roughly $80 less than a pro rata refund of about $1,052. Applied to a higher premium, the same 19% produces a proportionally larger dollar amount.
How to cancel your Echelon policy
Echelon sells exclusively through independent brokers, so the cancellation request is submitted through the broker who holds your policy. Ask for a cancellation quote showing the retained premium, state the date on which the replacement policy starts, and confirm the effective date in writing.
- 1Submit the request through the broker who holds your policy
- 2Provide your policy number and reason
- 3Request a cancellation quote showing the penalty
- 4State the start date of the replacement policy
- 5Confirm the effective date in writing
There is no fixed refund schedule. When you submit the request, ask when Echelon will release the refund and whether it is paid to you directly or through the broker of record.
Echelon Insurance Short Rate Summary
Refund at key cancellation points, based on a $1200 annual premium
| Days in Force | Earned % | Refund |
|---|---|---|
| 14 days | 11% | $1,068 |
| 30 days | 15% | $1,020 |
| 60 days | 23% | $924 |
| 90 days | 31% | $828 |
| 120 days | 39% | $732 |
| 180 days | 54% | $552 |
| 270 days | 78% | $264 |
| 330 days | 93% | $84 |
Echelon Insurance keeps a minimum of $100.00 on any cancellation. Where that minimum is more than the amount earned by the schedule, the Refund column is based on the minimum instead.
How Echelon compares
Echelon'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.
A minimum retained premium of $100 applies to Echelon auto cancellations. Not every cancellation is short rate: Echelon's rules list situations that are refunded pro rata instead, such as a cancellation initiated by the insurer, so ask which basis applies when you request the quote.
Before you cancel
- Minimum retained premium — Echelon keeps at least $100 on any auto cancellation, whatever the table percentage works out to.
- Higher premiums, larger dollar penalties — the percentages are the standard table's, so the dollar amount scales with the premium; the gap above pro rata is 6.8 points of the annual premium at day 30 and 3.8 points at day 300.
- Auto table shown — the schedule and the $100 minimum on this page are from Echelon's auto rules; for a motorcycle, recreational, specialty property or commercial policy, confirm the cancellation basis when you request the quote.
Frequently Asked Questions
How much is the Echelon Insurance cancellation fee?
Echelon uses the standard short rate table rather than a flat fee, with a minimum retained premium of $100. On a $1,200 policy cancelled after 45 days, Echelon keeps about 19% ($228) and refunds $972. A pro rata refund would return roughly $1,052, so the short rate penalty in this example is about $80.
What does Echelon Insurance specialize in, and who owns it?
Echelon Insurance writes non-standard and specialty personal lines (automobile, motorcycle, recreational vehicles and specialty property) and commercial lines across Canada. Founded in 1998 as Echelon General Insurance Company and renamed in 2015, it has been owned by CAA Club Group since May 31, 2019. CAA Club Group also owns CAA Insurance Company, which uses the same standard short rate table with no minimum retained premium.
How do I cancel my Echelon Insurance policy?
Echelon sells exclusively through independent brokers, so the cancellation request is submitted through the broker who holds your policy. Ask for a cancellation quote showing the short rate penalty and confirm the effective date in writing.
Can I avoid short rate penalties with Echelon?
Some cancellations are refunded pro rata with no short rate penalty, for example when the insurer rather than the policyholder cancels the policy. The list of qualifying reasons is Echelon’s own, so ask which basis applies when you request the quote.
How long does an Echelon refund take?
Depending on how the policy was billed, the refund is paid either directly to you or through the broker of record, and a cheque has to be issued and mailed. No turnaround is published, so ask for an expected date when the cancellation request is submitted.
Sources & Verification
- ·Verified against Echelon's Ontario auto underwriting rules in effect November 2024.
- ·Echelon Insurance broker channel for current cancellation procedures.
- ·Company facts (founding, renaming, the 2019 acquisition by CAA Club Group, geography, distribution, premium volume) from echeloninsurance.ca, caaclubgroup.com and the 2019 closing press release; see docs/carrier-facts.md in the site repository for the full ledger.
- ·Reviewed by the CostExpert editorial team. Figures are estimates — confirm your exact refund with your broker before cancelling.
Reviewed by CostExpert Editorial Team · Last verified September 2026
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