Facility AssociationCancellation Fee Guide
Official short rate table and cancellation fee calculator for Facility Association (Canada's residual market insurer) policies
Facility Association is Canada's residual market mechanism — the insurer of last resort for drivers who cannot obtain coverage from any regular insurer, often because of a poor driving record, claims history, or a prior cancellation. It is not a company you buy from directly; an authorized broker places and services the policy on your behalf.
Premiums typically run two to four times standard-market rates, so while Facility Association uses the same standard short rate table as mainstream insurers, the dollar cost of cancelling early is much higher. Calculating the penalty before you cancel is especially important here.
How Facility Association calculates your cancellation fee
The standard table keeps 8% of your premium in the first three days and rises to 100% near renewal. The percentages are identical to other standard-table insurers — but applied to a residual-market premium, the dollar figures are larger.
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 would cost only about $74.
How to cancel your Facility Association policy
All changes go through the broker who placed your policy. Given your risk profile, lining up replacement coverage can take time — never cancel until a new policy is confirmed, and ask for the refund calculation in writing first.
- 1Contact your insurance broker
- 2Have your policy number ready
- 3Ensure you have replacement coverage
- 4Request the refund calculation in writing
- 5Get written confirmation of cancellation date
Refund processing: 10-15 business days through your broker. May take longer than regular insurers. Confirm refund calculation before cancelling.
Enter your premium to see dollar amounts below
Facility Association Short Rate Summary
Refund at key cancellation points, based on a $3000 annual premium
| Days in Force | Earned % | Amount Earned | Refund |
|---|---|---|---|
| 14 days | 11% | $330.00 | $2,670.00 |
| 30 days | 15% | $450.00 | $2,550.00 |
| 60 days | 23% | $690.00 | $2,310.00 |
| 90 days | 31% | $930.00 | $2,070.00 |
| 120 days | 39% | $1,170.00 | $1,830.00 |
| 180 days | 54% | $1,620.00 | $1,380.00 |
| 270 days | 78% | $2,340.00 | $660.00 |
| 330 days | 93% | $2,790.00 | $210.00 |
How Facility Association compares
On paper Facility Association is not stricter than anyone — its short-rate percentages are the standard industry schedule shown on our short rate table.
What makes it different is the premium level. As Ontario's residual market — the insurer of last resort — its rates are the highest you will encounter, so the identical percentage produces the largest dollar penalty of any insurer here. The smartest move is usually to graduate out of Facility Association into the standard market as soon as your driving record allows, which often means a cancellation here is itself a step up.
Tips to minimize penalties
- • Secure replacement coverage first — due to your risk profile, finding new insurance may take time. Never cancel without a new policy in place.
- • Check your driving record — after 1-3 years of clean driving you may qualify for regular market insurance at significantly lower rates.
- • Shop around with multiple brokers — compare the savings against your short rate penalty to see if switching makes financial sense.
Frequently Asked Questions
What is the Facility Association cancellation fee?
Facility Association uses the standard short rate table, not a flat fee. Because residual-market premiums are high, the dollar penalty is significant: 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 insurance?
Facility Association is Canada’s residual market insurer — the insurer of last resort for high-risk drivers who cannot obtain coverage from regular companies, often due to a poor driving record, multiple claims, or a prior cancellation.
How do I cancel my Facility Association policy?
You cannot cancel directly with Facility Association. Contact the broker who placed the policy, have your policy number ready, request the refund calculation in writing, and get written confirmation of the cancellation date.
Can I switch from Facility Association to a regular insurer?
Often yes. After maintaining a clean driving record for one to three years, many drivers qualify for standard-market insurance at much lower rates. Get replacement coverage confirmed before cancelling your Facility policy.
How long does a Facility Association refund take?
Expect about 10-15 business days, processed through your broker. Residual-market refunds can take longer than regular insurers, so confirm the refund calculation before you cancel.
Sources & Verification
- ·Standard Canadian short rate cancellation table, which Facility Association uses for early cancellations.
- ·Facility Association broker channel for current cancellation procedures and refund timelines.
- ·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 June 2026
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