Auto insurance companies in Canada indeed have mechanisms to verify your prior coverage history. When you apply for a new auto insurance policy or switch insurance providers, your new insurer will typically seek to confirm your coverage history. They do this by accessing data from insurance history databases, such as the AutoPlus database, which is managed by CGI, one of Canada’s major providers of insurance information.
AutoPlus consolidates insurance history across multiple insurers and generates reports essential for underwriting purposes. This repository allows insurers to gather pertinent information related to your previous claims, policy durations, and any gaps in coverage. Additionally, Canadian insurance regulations often empower insurers to request confirmation of your previous insurance details directly from former insurance providers.
Verification of your history helps insurers assess the risk of insuring you and may influence the premiums you’re offered. An unbroken history of coverage without significant claims can lead to better rates, while lapses in coverage or a history of frequent claims could result in higher premiums.
It’s important to note that you have rights regarding the information held about you and may request a copy of your report from these databases to ensure accuracy. If you find discrepancies, you have the right to request corrections to maintain fair evaluation when switching or applying for insurance coverage.
