Cancelling Wawanesa Auto Insurance in Canada – $3,600 Cancellation Fee?! I Need Help!
Hey Reddit,
I’m a 27-year-old guy living in Mississauga, and I’m hoping to get some advice. I moved to Canada on permanent residency last year, got my G license, and financed my first car—a 2025 Honda Civic Hybrid—in late November. I’ve been with Wawanesa auto insurance since then, paying $750 a month through automatic withdrawals.
Here’s what’s going on:
I bought this car not only for personal use but also to drive for Uber Eats. I wanted to ensure everything was above board, so I was honest with every insurance provider I approached. Unfortunately, they all said my lack of Canadian driving history made me ineligible for standard commercial insurance. A broker eventually found me a commercial policy with Wawanesa that covers Uber driving.
I also have a regular job just a short walk from my home, and I have a couple of significant licensing exams coming up, which means Uber will have to take a back seat for a while.
With that in mind, I’m considering canceling my insurance or switching to a non-commercial plan. However, here’s the snag:
I’ve heard that canceling before the policy term ends could mean Wawanesa charges a short-rate cancellation fee, and I’ve been told it could be as high as $3,600 upfront for me since my policy started in November 2024. I definitely don’t have that kind of money available.
If I don’t cancel, they’ll just withdraw another $750 at the beginning of April as usual.
A few additional points:
- I have a clean driving record since getting my G license in Canada, except for one camera ticket in Brampton for going slightly over the limit.
- I checked TD Bank’s auto insurance calculator, and it suggests I might be able to get a non-commercial plan in the mid-$400s, which is a lot more manageable.
- The broker who set up my current policy hasn’t been very responsive lately, so I’m planning to reach out to Wawanesa directly when they open.
So, I have a few questions that are keeping me up at night:
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How should I prepare for my call with Wawanesa? Any tips for what I should say or ask?
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If I cancel now, will I really be charged the full $3,600 upfront?
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Can I negotiate or arrange to pay the cancellation fee in installments?
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What should I consider if I decide to cancel?
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Is it possible to downgrade to a non-commercial plan instead of canceling outright?
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What would you do in my shoes? Any personal experiences with Wawanesa or brokers you’d like to share?
I know I should just call Wawanesa to ask all this, and I will as soon as they’re open. But since I’m feeling stressed and can’t sleep, I thought I’d reach out to Reddit for advice. Thanks in advance for any help you can offer!
Appreciate it!
Hey there!
I can totally understand how stressful this situation must be for you. Here’s some advice to help you navigate your upcoming phone call with Wawanesa and address your concerns:
Be polite but firm when discussing your situation. Express your willingness to find a solution that works for both sides.
Cancellation Fee:
It’s true that many insurers charge a short-rate cancellation fee, but it’s worth asking for clarification on how that fee is calculated. You may be able to negotiate or reduce it depending on your situation.
Negotiating the Fee:
Ask if they can offer you a payment plan for the cancellation fee or if they can waive it altogether given your financial situation and clean driving record. It never hurts to ask!
What to Look Out For:
Request confirmation in writing for whatever you agree upon during the call.
Downgrading:
Definitely ask about downgrading to a non-commercial policy instead of canceling. Explain your current situation and see if they can offer a plan that covers your needs without the high costs of commercial coverage.
What I’d Do:
You’re not alone in this, and many people have been in similar situations. Remember to be proactive and assertive about your needs, and good luck with your call! Keep us updated on how it goes!