Terms Defined – Facility Insurance
The insurance industry uses all kinds of terms that may not be familiar to you. For this reason, we have put together various blog posts that cover off some of the terms you may come across, but may not necessarily understand, in addition to the full glossary of insurance terms you can access here.
In this post we’re going to define a term that is very important for anyone in the market for high risk auto insurance – facility insurance.
Facility insurance defined
Facility insurance refers to a special type of insurance that is available to high risk drivers who are not able to get a standard auto insurance policy. They have to tap into the residual market to get coverage. It is provided by the Facility Association.
Requiring facility insurance means that you are considered such a high risk that auto insurance companies simply aren’t willing to take the chance to offer you coverage. It’s seen as a last resort type of insurance – you don’t want it unless you absolutely have to since you will pay much higher premiums (usually rates for facility insurance are around 2-3 times higher than regular auto insurance rates). Since auto insurance is mandatory to drive in Ontario, this gives high risk drivers an option for coverage, no matter what might be on their driving record.
Wondering what exactly constitutes a high risk driver and how one might get put in this category? In a nutshell we’re talking about factors such as the number of accidents one has had, the number of tickets one has been issued and other problematic behaviours such as missing payments or committing insurance fraud. Click here to find out more about what factors will get you this label.
Stay tuned for an upcoming post where we get into the nitty gritty of facility insurance and how it works for high risk drivers in the province of Ontario.
Are you in the high risk insurance category and want to know more about getting auto insurance coverage? Reach out to our team to find out more how we can help you get out on the road. One of our specialties is helping high risk drivers get the most affordable coverage possible. Or click here to get a high risk auto insurance quote online.
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