Facility AssociationCancellation Fee Guide
Official short rate table and cancellation fee calculator for Facility Association (residual market) auto policies
Quick estimate
Auto scheduleRefund $2,070
Facility Association is not an insurance company. It is an unincorporated non-profit association of insurers, established on June 28, 1977 and continued under Ontario's Compulsory Automobile Insurance Act, through which the industry provides auto insurance to owners and drivers who cannot obtain it from any individual insurer; every insurer licensed to write automobile liability insurance in its jurisdictions is a member by law. It operates in Alberta, Ontario, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Yukon, the Northwest Territories and Nunavut, and began operating in Ontario on December 1, 1979. In calendar 2025 the residual market wrote $524.3 million in premium on 122,417 vehicles across all jurisdictions, including $202.0 million on 24,688 vehicles in Ontario, where the average written premium per vehicle was $8,180. Facility Association does not issue policies itself: the application is placed through a licensed broker or agent, and a servicing carrier, a member insurer under contract, issues the policy, collects the premium and handles claims. Its head office is in Toronto.
For early cancellations Facility Association 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 $25. Because residual-market premiums are higher than standard-market premiums, the same percentage produces a larger dollar amount.
How Facility Association calculates your cancellation fee
The standard table keeps 8% of your premium in the first three days and rises to 100% at day 354. The percentages are identical to other standard-table insurers; applied to a residual-market premium, the dollar figures are larger. If the retained amount works out below $25, $25 is retained.
On a $3,000 policy cancelled after 120 days, Facility Association keeps about 39% ($1,170), leaving an $1,830 refund. A pro rata refund would return roughly $2,014, so the short rate penalty here is about $184. On a standard-market $1,200 policy, the same 120-day cancellation produces a penalty of about $73.
How to cancel your Facility Association policy
The cancellation request goes through the broker or agent who placed the policy, and the servicing carrier that issued it processes the cancellation. Ask for the refund calculation in writing and, if the policy is being replaced by one in the voluntary market, for the pro rata basis set out in Facility Association’s rules.
- 1Submit the request through the broker who placed the policy
- 2Have your policy number ready
- 3State the start date of the replacement policy
- 4Request the refund calculation in writing
- 5Get written confirmation of the cancellation date
Refund timing varies with the servicing carrier and with how the policy was billed. Ask for an expected date in writing alongside the refund calculation.
Facility Association Short Rate Summary
Refund at key cancellation points, based on a $3000 annual premium
| Days in Force | Earned % | Refund |
|---|---|---|
| 14 days | 11% | $2,670 |
| 30 days | 15% | $2,550 |
| 60 days | 23% | $2,310 |
| 90 days | 31% | $2,070 |
| 120 days | 39% | $1,830 |
| 180 days | 54% | $1,380 |
| 270 days | 78% | $660 |
| 330 days | 93% | $210 |
Facility Association keeps a minimum of $25.00 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 Facility Association compares
Facility Association'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. The full schedule is on our short rate table.
Two things differ from a standard-market insurer. The premium level: in Ontario the average written premium per vehicle in the residual market was $8,180 in 2025, so the same percentage produces a larger dollar amount. And the pro rata rule: Facility Association's rules provide that a risk, other than a seasonal recreational vehicle, cancelled because it has been placed in the voluntary market is cancelled pro rata rather than short rate, with the servicing carrier entitled to ask for proof of the replacement policy.
Before you cancel
- Pro rata when moving to the voluntary market — a policy, other than one on a seasonal recreational vehicle, cancelled because it has been replaced by one in the voluntary market is calculated pro rata under Facility Association's rules; the servicing carrier may ask for proof of the new policy.
- Minimum retained premium — in Ontario, $25 is retained on any cancellation, whatever the table percentage works out to.
- Coverage history — insurers ask for continuous-coverage history when they rate a new policy; a gap between the cancellation date and the start of the replacement policy becomes part of that history.
Frequently Asked Questions
What is the Facility Association cancellation fee?
Facility Association uses the standard short rate table, not a flat fee, with a minimum retained premium of $25. Residual-market premiums are higher than standard-market premiums, so the dollar amount is larger: on a $3,000 policy cancelled after 120 days, it keeps about 39% ($1,170) and refunds $1,830. A pro rata refund would return roughly $2,014, so the short rate penalty here is about $184.
What is Facility Association?
Facility Association is an unincorporated non-profit association of insurers, established on June 28, 1977, through which the industry provides auto insurance to owners and drivers who cannot obtain it from any individual insurer. Every insurer licensed to write automobile liability insurance in its nine jurisdictions is a member by law. It does not issue policies itself: a servicing carrier, a member insurer under contract, issues the policy, collects the premium and handles claims.
How do I cancel my Facility Association policy?
The cancellation request is submitted through the broker or agent who placed the policy; the servicing carrier that issued it processes the cancellation. Have your policy number ready, request the refund calculation in writing, and get written confirmation of the cancellation date.
Is the refund pro rata if I move to the voluntary market?
Facility Association’s own rules state that when a risk, other than a seasonal recreational vehicle, is cancelled because it has been placed in the voluntary market, the cancellation is calculated on a pro rata basis rather than short rate. The servicing carrier may ask for proof that the replacement policy is in the voluntary market.
How long does a Facility Association refund take?
The refund is processed by the servicing carrier and, depending on how the policy was billed, paid directly to you or through the broker of record. No turnaround is published, so confirm the refund calculation before you cancel and ask for an expected payment date in writing.
Sources & Verification
- ·Verified against Facility Association's Ontario auto underwriting rules in effect November 2025.
- ·Facility Association publishes its Ontario rules and rates manual publicly; the $25 minimum retained premium and the pro rata treatment for risks placed in the voluntary market are taken from those rules and from Facility Association’s published FAQ.
- ·Organization facts (establishment date, legal status, jurisdictions, 2025 premium and vehicle counts) from facilityassociation.com, Facility Association’s audited financial statements for the year ended October 31, 2025 and its FARM operating results for December 2025; see docs/carrier-facts.md in the site repository for the full ledger.
- ·Facility Association broker channel for current cancellation procedures.
- ·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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