What is the Facility Association (high-risk auto pool)?

The Facility Association exists to ensure every licensed driver in Ontario can access minimum mandatory insurance coverage, even when standard insurers decline them. Private insurers participating in the pool contribute capital and administrative support, while drivers deemed uninsurable through normal channels are placed into this shared risk pool. Participation is compulsory for all licensed auto insurers operating in the province.

Drivers typically land in the Facility Association for reasons including driving record violations, claims history, lack of driving history, or other factors that make them statistically higher-risk. Insurance brokers and agents handle the placement process, submitting applications when standard coverage options are exhausted. The pool spreads financial risk across the entire insurance market rather than leaving such drivers uninsured or forced onto the street.

Rates in the Facility Association are substantially higher than standard market rates, reflecting the elevated claim frequency and severity associated with this population. Coverage meets Ontario's statutory minimums: third-party liability, uninsured motorist protection, direct compensation property damage (DCPD), and optional collision and comprehensive. The rates are filed with Financial Services Regulatory Authority (FSRA) and are publicly available.

For insurance professionals in Toronto and across Ontario, understanding Facility Association placement is essential when working with auto insurance providers. Brokers need to know which carriers are currently accepting new Facility business and the typical underwriting requirements, as capacity varies seasonally and between insurers.