Missed a Car Insurance Payment? Here's How to Resolve It

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By Aren Mirzaian
First published on January 09, 2025

2 minute read

✎ Updated By Vitalii Starov on August 20, 2026

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Article Contents

If you miss a car insurance payment, it’s important to act quickly. Depending on your insurer and policy details, a missed payment can lead to a cancellation of your insurance, leaving you without coverage if the issue isn’t resolved.

We reviewed the current Ontario Automobile Policy (OAP 1), sections 1.7.3–1.7.4, FSRA’s consumer guidance on non-payment cancellation, and Ontario Regulation 664 to answer what happens if you miss a car insurance payment, how much time you have to catch up, and what to do if your policy is cancelled.

Resolving a Missed Payment Step-By-Step

If you’ve missed a car insurance payment, here’s what you can do:

  1. Confirm the exact amount, approved payment method and cancellation time shown in the formal notice you receive from your insurer. For a first or second notice, timely payment under OAP 1 prevents termination. Do not rely on discretionary leniency or an extended deadline.
  2. Follow the missed payment deadline. In Ontario, payments generally must be made by noon on the business day before the stated termination date and in the method the notice permits.
  3. If you’re facing financial difficulties that prevent immediate payment, ask if your insurer can set up a more manageable payment plan.
  4. Be aware of any late fees that might apply and factor them in when making the overdue premium payment.
  5. Request available options, but assume there won’t be an extension or payment plan unless the insurer confirms it in writing. Continue monitoring the formal cancellation deadline.
  6. If your policy is terminated, do not drive until replacement coverage is confirmed in writing.

Read More: Consequences of a Car Insurance Lapse

What Happens After You Miss a Car Insurance Payment

What Steps Should I Take to Get Auto Insurance After My Policy Was Cancelled

Securing a new auto insurance policy after having the previous one cancelled for non-payment poses some challenges. Although it is hard to find one, you can still get coverage by being upfront about your policy history, shopping around, and looking at high-risk insurance options. 

Read More: Getting Car Insurance After Cancellation in Ontario

How to Make Sure I Don’t Accidentally Miss a Payment in the Future

Life happens, and it’s all too easy to overlook your car insurance payments. Here are a few simple tricks to make sure you never miss another payment and your policy stays in force:

Set up auto-pay:

This is the easiest fix. Most car insurance companies let you set up automatic payments through your bank account or credit card. Once it’s set up, you’re good to go. Just keep an eye on your account to make sure there’s enough cash to cover the payment.

Get payment reminders:

If you prefer to pay manually, set a reminder for yourself. Use your phone, email, or even a sticky note on the fridge – whatever works for you. Give yourself a heads-up a few days before the due date so it doesn’t sneak up on you.

Time insurance payments with your payday:

If you’re paid bi-weekly, line up your insurance payment to come out right after payday. That way, you know the money is there, and you’re not scrambling to figure it out later. Most insurance companies can help you tweak your payment date – just give them a call.

Update your contact info:

Make sure your insurance company has the right email address, phone number, and mailing address for you. It might seem small, but if you’re missing reminders because they’re going to an old email, that’s an easy problem to fix.

Keep a little back-up fund:

Sometimes an unexpected bill will come up or your car needs a pricey repair. Keeping a small amount as a “buffer” in your bank account for your car insurance can help you stay covered, even when things get tight.

Double-check your payment details:

If your payment is set up through a credit card or bank account, make sure your details are current. Cards expire, accounts change, and those little hiccups can lead to missed payments if you’re not careful. Update your insurer as soon as anything changes.

By Aren Mirzaian

With over a decade in Canada’s insurance sector, Aren is a leading voice in the industry, providing thought leadership on auto insurance, underwriting innovation, and how technology is reshaping insurance.

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