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Auto insurance terms explained

Facility Association

For explanations of policy coverages please go to our What is covered by auto insurance section

Insurance policy terms and conditions are as stated in the actual insurance policy wordings. Nothing stated herein is intended to modify any part of an insurance policy. If you have a specific question of significance to your situation contact your insurance advisor.


The Facility Association (FA) was created by the insurance industry under the direction of the Ontario government (Compulsory Automobile Insurance Act). The Act makes auto insurance mandatory in Ontario and the fine for not having insurance is very high. (also see "Driving without insurance")

The FA enables every licensed driver to obtain auto insurance, regardless of driving record. Under the rules of the FA, it provides insurance to drivers who are considered higher risk drivers by insurers. In fact, you can only be insured by the FA if an insurer has refused, in writing, to insure you and has told you why you are being refused.

If your history of accidents, driving tickets, policy cancellations for non-payment, or other factors puts you in a higher risk category, you may have no alternative but to pay the significantly higher premium charged by the FA. However, once your driving record and insurance history improves, you ought to become acceptable to a regular insurer. Keep in mind that "at fault" accidents stay on your record for 5 years, tickets and missed premium payments remain on your record for 3 years.


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