Facility Association Cancellation Fee Guide 2025
Facility Association is Canada's residual market insurer, providing auto insurance coverage to high-risk drivers who cannot obtain insurance through the regular market. Understanding cancellation fees is especially important for Facility policyholders due to typically higher premiums.
About Facility Association
Facility Association is a non-profit unincorporated association of all automobile insurers licensed to write auto insurance in Canada (except Manitoba, Saskatchewan, and British Columbia which have public insurance). It serves as the insurer of last resort for drivers who cannot obtain coverage in the regular insurance market.
Drivers typically end up with Facility Association coverage due to poor driving records, multiple at-fault accidents, DUI convictions, license suspensions, or being cancelled by previous insurers. While premiums are significantly higher than regular market rates, Facility provides essential coverage to ensure all drivers can meet legal insurance requirements.
Facility Association policies are placed through licensed insurance brokers, not directly with Facility. This means all policy changes, including cancellations, must go through your broker.
How to Cancel Facility Association
- 1.Contact your insurance broker
- 2.Have your policy number ready
- 3.Ensure you have replacement coverage
- 4.Request the refund calculation in writing
- 5.Get written confirmation of cancellation date
Facility Refund Timeline
- Processing time: 10-15 business days
- Refund through your broker
- May take longer than regular insurers
- Confirm refund calculation before cancelling
Important Considerations for Facility Association Policyholders
- • Secure replacement coverage first: Due to your risk profile, finding new insurance may take time—don't cancel until you have a new policy
- • Higher penalties: With higher premiums, the dollar amount of short rate penalties can be substantial
- • Check your driving record: After 1-3 years of clean driving, you may qualify for regular market insurance at lower rates
- • Shop around: Get quotes from multiple brokers before making a decision
Facility AssociationShort Rate Table
Official short rate cancellation table for Facility Association insurance policies in Canada
Calculate Your Refund
Facility Association Short Rate Schedule
Showing refund calculations based on $1200 annual premium
| Days in Force | Premium Earned % | Amount Earned | Refund Amount | vs Pro Rata |
|---|---|---|---|---|
| 1-3 days | 8% | $96.00 | $1,104.00 | -$89.42 (7.5%) |
| 4-7 days | 9% | $108.00 | $1,092.00 | -$89.92 (7.5%) |
| 8-11 days | 10% | $120.00 | $1,080.00 | -$88.77 (7.4%) |
| 12-15 days | 11% | $132.00 | $1,068.00 | -$87.62 (7.3%) |
| 16-19 days | 12% | $144.00 | $1,056.00 | -$86.47 (7.2%) |
| 20-23 days | 13% | $156.00 | $1,044.00 | -$85.32 (7.1%) |
| 24-26 days | 14% | $168.00 | $1,032.00 | -$85.81 (7.2%) |
| 27-30 days | 15% | $180.00 | $1,020.00 | -$86.30 (7.2%) |
| 31-34 days | 16% | $192.00 | $1,008.00 | -$85.15 (7.1%) |
| 35-38 days | 17% | $204.00 | $996.00 | -$84.00 (7.0%) |
| 39-42 days | 18% | $216.00 | $984.00 | -$82.85 (6.9%) |
| 43-46 days | 19% | $228.00 | $972.00 | -$81.70 (6.8%) |
| 47-49 days | 20% | $240.00 | $960.00 | -$82.19 (6.8%) |
| 50-53 days | 21% | $252.00 | $948.00 | -$82.68 (6.9%) |
| 54-57 days | 22% | $264.00 | $936.00 | -$81.53 (6.8%) |
| 58-61 days | 23% | $276.00 | $924.00 | -$80.38 (6.7%) |
| 62-65 days | 24% | $288.00 | $912.00 | -$79.23 (6.6%) |
| 66-69 days | 25% | $300.00 | $900.00 | -$78.08 (6.5%) |
| 70-73 days | 26% | $312.00 | $888.00 | -$76.93 (6.4%) |
| 74-76 days | 27% | $324.00 | $876.00 | -$77.42 (6.5%) |
| 77-80 days | 28% | $336.00 | $864.00 | -$77.92 (6.5%) |
| 81-84 days | 29% | $348.00 | $852.00 | -$76.77 (6.4%) |
| 85-88 days | 30% | $360.00 | $840.00 | -$75.62 (6.3%) |
| 89-92 days | 31% | $372.00 | $828.00 | -$74.47 (6.2%) |
| 93-96 days | 32% | $384.00 | $816.00 | -$73.32 (6.1%) |
| 97-99 days | 33% | $396.00 | $804.00 | -$73.81 (6.2%) |
| 100-103 days | 34% | $408.00 | $792.00 | -$74.30 (6.2%) |
| 104-107 days | 35% | $420.00 | $780.00 | -$73.15 (6.1%) |
| 108-111 days | 36% | $432.00 | $768.00 | -$72.00 (6.0%) |
| 112-115 days | 37% | $444.00 | $756.00 | -$70.85 (5.9%) |
| 116-119 days | 38% | $456.00 | $744.00 | -$69.70 (5.8%) |
| 120-122 days | 39% | $468.00 | $732.00 | -$70.19 (5.8%) |
| 123-126 days | 40% | $480.00 | $720.00 | -$70.68 (5.9%) |
| 127-130 days | 41% | $492.00 | $708.00 | -$69.53 (5.8%) |
| 131-134 days | 42% | $504.00 | $696.00 | -$68.38 (5.7%) |
| 135-138 days | 43% | $516.00 | $684.00 | -$67.23 (5.6%) |
| 139-142 days | 44% | $528.00 | $672.00 | -$66.08 (5.5%) |
| 143-146 days | 45% | $540.00 | $660.00 | -$64.93 (5.4%) |
| 147-149 days | 46% | $552.00 | $648.00 | -$65.42 (5.5%) |
| 150-153 days | 47% | $564.00 | $636.00 | -$65.92 (5.5%) |
| 154-157 days | 48% | $576.00 | $624.00 | -$64.77 (5.4%) |
| 158-161 days | 49% | $588.00 | $612.00 | -$63.62 (5.3%) |
| 162-165 days | 50% | $600.00 | $600.00 | -$62.47 (5.2%) |
| 166-169 days | 51% | $612.00 | $588.00 | -$61.32 (5.1%) |
| 170-172 days | 52% | $624.00 | $576.00 | -$61.81 (5.2%) |
| 173-176 days | 53% | $636.00 | $564.00 | -$62.30 (5.2%) |
| 177-180 days | 54% | $648.00 | $552.00 | -$61.15 (5.1%) |
| 181-184 days | 55% | $660.00 | $540.00 | -$60.00 (5.0%) |
| 185-188 days | 56% | $672.00 | $528.00 | -$58.85 (4.9%) |
| 189-192 days | 57% | $684.00 | $516.00 | -$57.70 (4.8%) |
| 193-195 days | 58% | $696.00 | $504.00 | -$58.19 (4.8%) |
| 196-199 days | 59% | $708.00 | $492.00 | -$58.68 (4.9%) |
| 200-203 days | 60% | $720.00 | $480.00 | -$57.53 (4.8%) |
| 204-207 days | 61% | $732.00 | $468.00 | -$56.38 (4.7%) |
| 208-211 days | 62% | $744.00 | $456.00 | -$55.23 (4.6%) |
| 212-215 days | 63% | $756.00 | $444.00 | -$54.08 (4.5%) |
| 216-219 days | 64% | $768.00 | $432.00 | -$52.93 (4.4%) |
| 220-222 days | 65% | $780.00 | $420.00 | -$53.42 (4.5%) |
| 223-226 days | 66% | $792.00 | $408.00 | -$53.92 (4.5%) |
| 227-230 days | 67% | $804.00 | $396.00 | -$52.77 (4.4%) |
| 231-234 days | 68% | $816.00 | $384.00 | -$51.62 (4.3%) |
| 235-238 days | 69% | $828.00 | $372.00 | -$50.47 (4.2%) |
| 239-242 days | 70% | $840.00 | $360.00 | -$49.32 (4.1%) |
| 243-245 days | 71% | $852.00 | $348.00 | -$49.81 (4.2%) |
| 246-249 days | 72% | $864.00 | $336.00 | -$50.30 (4.2%) |
| 250-253 days | 73% | $876.00 | $324.00 | -$49.15 (4.1%) |
| 254-257 days | 74% | $888.00 | $312.00 | -$48.00 (4.0%) |
| 258-261 days | 75% | $900.00 | $300.00 | -$46.85 (3.9%) |
| 262-265 days | 76% | $912.00 | $288.00 | -$45.70 (3.8%) |
| 266-268 days | 77% | $924.00 | $276.00 | -$46.19 (3.8%) |
| 269-272 days | 78% | $936.00 | $264.00 | -$46.68 (3.9%) |
| 273-276 days | 79% | $948.00 | $252.00 | -$45.53 (3.8%) |
| 277-280 days | 80% | $960.00 | $240.00 | -$44.38 (3.7%) |
| 281-284 days | 81% | $972.00 | $228.00 | -$43.23 (3.6%) |
| 285-288 days | 82% | $984.00 | $216.00 | -$42.08 (3.5%) |
| 289-292 days | 83% | $996.00 | $204.00 | -$40.93 (3.4%) |
| 293-296 days | 84% | $1,008.00 | $192.00 | -$39.78 (3.3%) |
| 297-299 days | 85% | $1,020.00 | $180.00 | -$40.27 (3.4%) |
| 300-303 days | 86% | $1,032.00 | $168.00 | -$40.77 (3.4%) |
| 304-307 days | 87% | $1,044.00 | $156.00 | -$39.62 (3.3%) |
| 308-311 days | 88% | $1,056.00 | $144.00 | -$38.47 (3.2%) |
| 312-315 days | 89% | $1,068.00 | $132.00 | -$37.32 (3.1%) |
| 316-318 days | 90% | $1,080.00 | $120.00 | -$37.81 (3.2%) |
| 319-322 days | 91% | $1,092.00 | $108.00 | -$38.30 (3.2%) |
| 323-326 days | 92% | $1,104.00 | $96.00 | -$37.15 (3.1%) |
| 327-330 days | 93% | $1,116.00 | $84.00 | -$36.00 (3.0%) |
| 331-334 days | 94% | $1,128.00 | $72.00 | -$34.85 (2.9%) |
| 335-338 days | 95% | $1,140.00 | $60.00 | -$33.70 (2.8%) |
| 339-341 days | 96% | $1,152.00 | $48.00 | -$34.19 (2.8%) |
| 342-345 days | 97% | $1,164.00 | $36.00 | -$34.68 (2.9%) |
| 346-349 days | 98% | $1,176.00 | $24.00 | -$33.53 (2.8%) |
| 350-353 days | 99% | $1,188.00 | $12.00 | -$32.38 (2.7%) |
| 354-365 days | 100% | $1,200.00 | $0.00 | -$18.08 (1.5%) |
About Facility Association Cancellations
- • Minimum premium retained: varies by policy
- • Processing time: 2-4 weeks for refund
- • Method: Cheque or original payment method
- • Required: Written cancellation request
Pro Rata Exceptions
Facility Association may offer pro-rata (no penalty) cancellation for:
- • Switching to another Facility Association policy
- • Vehicle sold with proof of sale
- • Moving out of coverage area
- • Total loss claims
Ready to Calculate Your Exact Facility Association Refund?
Use our calculator with your specific policy dates for an accurate refund estimate
Understanding Facility Association Short Rate Cancellations
When you cancel your Facility Association insurance policy before its expiration date, the company uses this short rate table to calculate your refund. The short rate method ensures Facility Association retains enough premium to cover administrative costs and the risk they assumed while your policy was active.
How to Read This Table
Find the number of days your policy was active in the first column. The "Premium Earned %" shows how much of your annual premium Facility Association keeps. The remaining percentage is your refund, minus any outstanding amounts.
Tips for Cancelling Facility Association Insurance
- Time it right: The penalty percentage increases significantly in the first few months. If possible, wait until closer to renewal.
- Ask about exceptions: Facility Association may waive penalties for certain situations like financial hardship or if you are switching to another Facility Association product.
- Get it in writing: Always request written confirmation of your cancellation date and refund amount.
Understanding Facility Association's Short Rate Penalty
When you cancel a Facility Association policy before the end of your term, the short rate cancellation method is applied. This means you'll receive less than a pro-rata refund of your unused premium.
Because Facility Association premiums are typically 2-4 times higher than regular market rates, the cancellation penalty in dollar terms can be significant. For example, if you're paying $4,000 annually and cancel after 3 months, your short rate penalty could be $300-$600 or more.
The good news is that maintaining a clean driving record with Facility can help you qualify for regular market insurance sooner. Many drivers are able to transition back to standard insurers within 1-3 years, which often results in significant premium savings that outweigh any cancellation costs.
Transitioning Out of Facility Association
If you've been with Facility Association for a while and have maintained a clean driving record, you may be eligible for regular market insurance. Here's what to do:
- • Request a copy of your claims history from your broker
- • Obtain quotes from multiple regular market insurers through different brokers
- • Compare the potential savings against your short rate cancellation penalty
- • Ensure your new policy starts before your Facility policy ends
Need help with a different insurer? Try our universal calculator or compare rates below.
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