Ontario’s financial watchdog is cautioning vehicle buyers in Ontario after discovering that a company selling car insurance products in the province was never licensed to do so.
The Financial Services Regulatory Authority of Ontario (FSRA) has issued a warning about Assureway Protection Corporation, which had been selling guaranteed asset protection (GAP) insurance to consumers purchasing new and used vehicles.
FSRA found that some of Assureway Protection’s GAP products named an insurer on the policy despite no licensed insurer having actually issued it. The regulator confirmed that Assureway Protection is not and never has been a licensed insurance company in Ontario, meaning it was never legally authorized to sell insurance in the province.
As a result, existing or future policies and claims may not be honoured.
GAP insurance is designed to cover the financial gap between what a borrower still owes on a vehicle loan and the vehicle’s actual cash value if it is lost due to theft, an accident, or a mechanical defect.
FSRA said consumers should not purchase GAP insurance from Assureway Protection or any of its agents or representatives.
The regulator noted it cannot recover premiums, issue refunds or secure claim payments tied to Assureway’s products, though consumers may still file a complaint with FSRA to help the authority understand the scope of the company’s unlicensed activities. Complaints could also inform future regulatory action.
Consumers can contact FSRA or file a complaint through the authority’s website. Those with concerns about how the product was sold at a dealership may contact the Ontario Motor Vehicle Industry Council (OMVIC), as OMVIC regulates motor vehicle dealerships in the province.
Separate from licensing enforcement, the Ontario auto insurance market is undergoing planned reforms effective July 1, 2026. These include making most statutory accident benefits optional rather than mandatory and adjusting eligibility rules. Brokers and agents will play a critical role in helping consumers navigate these changes and understand policy options.
