Canada

Can my car insurance be voided if I made a false statement on my application?

Voidable
Policy status
Material fact
Key test
1978
Key SCC case
Duty to disclos
Insured obligation
The Short Answer

Yes, your car insurance can be voided if you made a false or material misrepresentation on your application — especially about driving record, convictions, or accidents.

What the Law Says

Canadian insurance law imposes a strict duty of honesty on applicants. While no single federal statute governs all auto insurance disclosures, provincial Insurance Acts — such as Ontario’s Insurance Act — set out the legal framework for voiding policies due to misrepresentation.

Under provincial insurance legislation, an insurer may void an automobile insurance policy from inception if the insured made a false statement or omitted a material fact on the application. A 'material fact' is one that would influence a prudent insurer in deciding whether to accept the risk or what premium to charge.

The duty applies even if the misrepresentation was unintentional — intent to deceive is not required. What matters is whether the undisclosed or misrepresented information is objectively material to the risk.

What Courts Have Said

The Supreme Court of Canada has confirmed that failure to disclose material facts — like prior driving offences — can render an auto insurance policy void ab initio (from the beginning), even without fraud.

Co-operative Insurance Services Ltd. v. McKarney
Supreme Court of Canada · 1978

The Court held that the insured’s failure to disclose two prior driving convictions was a material misrepresentation; the insurer was entitled to void the policy because the omissions would have affected its decision to insure and the premium charged.

What to Do

1

Review your insurance application carefully before signing — ensure all answers about convictions, accidents, and licence suspensions are complete and accurate.

2

If you realize you made an error *before* a claim arises, contact your insurer immediately to correct it in writing.

3

If a claim is denied based on alleged misrepresentation, request the insurer’s written reasons and consider seeking independent legal advice.

4

Keep copies of your application, policy documents, and all correspondence with your insurer.

Sources

Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.