Yes, auto insurance companies in Canada have the means to verify your prior coverage history. Insurers typically use various tools and databases to access this information, which helps them assess risk and determine premium rates for new policies. One of the primary tools is called the Auto Insurance Experience (IX) report, which is managed by insurance industry databases such as the Insurance Bureau of Canada (IBC) or other regional equivalents.
When you apply for a new insurance policy, companies can check your insurance history to ensure you haven’t had lapses in coverage, check the types and amounts of coverage you’ve held, and ascertain your claim history. This information is useful for them to make informed underwriting decisions and set appropriate insurance premiums.
Additionally, sharing your driver’s license number with the insurer enables them to pull details like previous claims, accident records, and whether there had been any cancellations due to non-payment. While insurers must comply with privacy laws and secure your consent before accessing most personal data, such verification practices are common as they help prevent fraudulent activities and provide consumers with fair pricing based on their risk profiles.
In conclusion, when applying for auto insurance in Canada, be prepared to provide accurate details of your prior coverage as insurers will very likely verify this history. Make sure your past insurance records are accurate and up-to-date to avoid complications or delays in obtaining new coverage.
