Understanding the Aviva Auto Insurance Cancellation Fee

For many drivers, auto insurance is a necessary, though often expensive, cost. Aviva, one of Canada's largest providers of auto insurance, is no exception. But it's important for drivers to understand the costs associated with their insurance – including understanding the fees associated with cancelling their coverage. That's why we're here to explain the Aviva auto insurance cancellation fee.

When You Have to Pay a Cancellation Fee

If you cancel your Aviva auto insurance policy, you may incur a cancellation fee. This fee is charged for cancelling the policy before it expires, and the amount of the fee depends on when you cancel your policy. In general, the closer you are to the end of your policy, the lower the fee will be. For example, if you cancel your policy during the first month of coverage, you can expect to pay a larger fee than if you cancel your policy during the last month of coverage. It's important to note that the fee is imposed regardless of the reason for cancelling your policy.

How Much is the Aviva Auto Insurance Cancellation Fee?

The amount of the fee depends on when you cancel your policy. Generally, if you're cancelling your policy during the first month of coverage, you can expect to pay a fee of up to $75. If you're cancelling your policy during the second month of coverage, the fee can be up to $50. And if you're cancelling your policy during the third month of coverage, the fee can be up to $25. It's important to note that these fees can vary depending on the province or territory where your policy was taken out.

How Do You Pay the Aviva Auto Insurance Cancellation Fee?

If you're required to pay a cancellation fee, Aviva will provide instructions on how to pay it. Generally, you can pay the fee online via your Aviva online banking account or by mail. If you're paying the fee online, you'll need to provide your credit card or bank account information. If you're paying the fee by mail, you'll need to send a cheque or money order to Aviva's head office. It's important to note that the payment must be received within 30 days of cancelling the policy.

Can You Avoid the Aviva Auto Insurance Cancellation Fee?

In some cases, you may be able to avoid the Aviva auto insurance cancellation fee. For example, if you're switching to another insurance provider, Aviva may waive the fee if you provide proof of the new policy. Additionally, if you have a good driving record, you may be eligible for a loyalty discount, which could reduce the amount of the fee. In any case, it's important to speak to your Aviva representative to get more information about your specific situation.

The Bottom Line

The Aviva auto insurance cancellation fee is a cost that drivers need to be aware of before cancelling their policy. It's important to understand how much the fee is, how it's calculated, and how it can be paid. Additionally, it's important to know that in some cases, the fee can be waived or reduced. By understanding the cancellation fee, drivers can make an informed decision about whether or not to cancel their policy.