Cancel Your Car Insurance in Quebec 2026: Steps, Notice Period & Reimbursement

Cancelling a car insurance policy in Quebec is a right governed by the Automobile Insurance Act and the Law on the Distribution of Financial Products and Services (LDPSF). Regardless of the reason — better price elsewhere, vehicle sale, moving out of Quebec, dissatisfaction — cancellation is possible at any time, with written notice. This guide details the procedure, notice period, pro-rata reimbursement, and special cases.

Most common cancellation reasons

• Better offer from another insurer — often after comparing online.
• Vehicle sale — without replacement, the policy becomes void.
• Moving out of Quebec — the FPQ 1 policy no longer applies.
• Policy consolidation — combining auto + home insurance with a single insurer.
• License withdrawal — death, disability, long-term license suspension.

30-day written notice

Cancellation at the insured’s initiative takes effect on the date stated in a written notice sent to the insurer. The insurer cannot require a notice period longer than what the policy specifies, but a reasonable timeframe of 15 to 30 days is typical to allow for administrative processing. Cancellation takes effect on the date you choose, provided it is after the insurer receives the notice.

Pro-rata premium reimbursement

When you cancel before the annual renewal date, the insurer must reimburse the unused portion of your premium, on a pro-rata basis for the remaining days. Example: annual premium of $1,200, cancellation after 200 days → 165 days remaining → reimbursement of approximately $542.

Note: some insurers apply an early cancellation penalty ($25 to $75 fixed fee or 5 to 10% reduction of the reimbursement). This practice remains legal if specified in the contract, but not all insurers apply it.

Cancellation letter template

Send the letter by email with read receipt or by registered mail to keep proof of sending.

SAAQ notice and vehicle registration transfer

In Quebec, the SAAQ does not require proof of insurance at registration — liability insurance is included in the SAAQ insurance contribution. However, driving without a valid FPQ 1 exposes you to civil penalties (personal lawsuit if you cause damage to others in an accident). Plan for your new policy to take effect on the same day as the cancellation of the old one — with no interruption.

Special cases

Financed or leased vehicle

The bank or credit company often requires proof of insurance before accepting the new policy. Provide your lender with the new policy certificate before cancelling the old one — otherwise you risk a notice of default.

Insurer-initiated cancellation

The insurer can also cancel your policy, with 15 days’ notice, due to misrepresentation, non-payment, risk aggravation, or a degraded driving record. You retain the right to obtain a new policy from another insurer — online comparison greatly simplifies the process in these cases.

Following an accident or claim in progress

You can cancel even if a claim is in progress. The insurer continues to process the claim according to the policy’s terms that were active at the time of the loss. However, a new insurer may refuse to cover you while the claim remains open — compare before cancelling.

Frequently asked questions