Who is insured through Facility Association?
Facility
Association (FA) and its member companies ensure that car insurance is
available to anyone who is entitled to it or is required to have it.
FA is not an insurance company; rather, it is a not-for-profit
organization made up of all car insurance providers operating in every
province and territory in Canada except British Columbia, Manitoba,
Saskatchewan and Quebec.FA ensures that any driver who can’t get car
insurance in the regular market can ultimately get insurance. That being said, only a very small percentage of drivers is insured through FA.
Generally, you may have to buy insurance through FA because:
- you have one or more moving violations on your record;
- you have a poor, or no, driving record;
- of something in your claims history;
- of the type of car you drive; and/or
- of how you use your car.
These are some of the reasons you might be considered a higher-risk driver – that is, at higher risk of having an accident. Insurance premiums are based on risk, so, higher-risk drivers insured through FA pay more for car insurance.
Getting out of FA
There’s good news: You are not destined to pay the
higher FA insurance rates forever. If you are currently insured through
Facility Association, you should be shopping around for insurance.
Facility Association exists to make sure coverage is available for
those unable to obtain it anywhere else. As the insurance marketplace
improves, or if your situation changes, there is more chance you can
find insurance in the regular market – at a lower price. Talk to your
insurance representative.
There are other things you can do to make your insurance business more attractive to insurers and lower your premiums.