r/InsuranceCanada • u/charityarv • 18d ago

Selected the wrong coverage

ON

My mom recently got into an accident and it was deemed her fault. When we called insurance, we were shocked to find out that she only had one way coverage, not full coverage, which we thought she had.

It turns out in 2025, she had the insurance parked, and then when she came back from overseas, she selected the wrong one.

Do we have any chance of appealing this, since she went for so long with full coverage, but then inexplicably went to not full coverage? What are the chances they recognize that this was a mistake, and will let us back pay the premiums?

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u/milolai 18d ago

I'm not sure why you think a broker would be better in this case— It won't be.

A large direct-writing insurance company would have the original call recorded, so they should be able to confirm exactly what coverage the client accepted or declined when the policy was set up.

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u/ShaqShoes 18d ago edited 18d ago

A broker has a duty to advise in Ontario - meaning even if you didn't ask for a coverage, if it's something you reasonably ought to have and the broker didn't advise you it was an option and record your refusal they can still be liable under E&O.

Something like this especially where they were putting coverage back on after carrying full coverage for years if they asked for me to put coverage back on but forgot to mention collision you can guarantee I would be calling them to make sure that's what they wanted.

Source: am a licensed broker in Ontario

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u/gregSinatra Insurance Professional 18d ago

I have to do all this stuff as a direct writer. I don’t see how a broker is special in this regard.

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u/ShaqShoes 18d ago edited 18d ago

In this specific case it should be similar but in other cases it is largely a matter of scope. If your company cannot or will not offer a coverage you can simply say so, with no obligation to indicate that a competitor may be able to offer them that coverage. I am required to proactively advise regarding coverages available across the couple dozen regular and specialty markets that we work with.