The Motor Vehicle Dealers Act, 2002 which took effect on January 1, 2010, prohibits dealers from offering third party warranties to their customers unless:
- The warranty is insured by a licensed Ontario insurer, or
- The warranty company has posted a $500,000 irrevocable letter of credit to the Compensation Fund
OMVIC also lists the companies it recognizes in each category, on its website, www.omvic.on.ca.
The UCDA considers full insurance coverage to be the best form of protection to adequately shield consumers and dealers in the event that a warranty provider fails to honour its obligations. A letter of credit can quickly be used up, which could then leave the dealer that sold a failed warranty on the hook for consumer claims.
Contact James Hamilton (firstname.lastname@example.org) at the UCDA if you’d like more information.
Every couple of years or so, we reach out to extended warranty companies on our list to confirm their products are still underwritten by Ontario Insurance Companies. In Ontario, dealers can only sell warranties to consumers that are insured or registered with a secured line of credit posted with OMVIC.
The UCDA considers insured products to be the gold-standard for consumer and dealer protection, and therefore we recommend our members only sell those products. For many years, we have invited companies that wish to participate in our list, maintained for our members, to demonstrate their insurance is proper and in good-standing. Those that choose to do so, appear on our list, which we publish in Front Line and online at our extended warranty update https://www.ucda.org/dealer-faqs/extended-warranties/
Each of the companies listed below have provided the UCDA with a copy of their insurance agreement, along with a written undertaking from the insurer to notify the UCDA in the event the coverage is cancelled or changes are made. The UCDA asks the recognized warranty companies to have insurers provide updates to us, confirming that insurance remains in place.
After receiving updates from insurers, here is the current, as of December 2023, alphabetical list of warranty companies that have met our requirements for insurance recognition:
USE OF THIS LIST IS AT YOUR OWN RISK. WHILE THE UCDA MAKES BEST EFFORTS TO VERIFY INSURANCE AT THE TIME OF OUR REVIEW, THERE IS NO GUARANTEE THAT ANY OF THE COMPANIES LISTED REMAIN INSURED DURING THE INTERVENING PERIOD. YOU MUST SATISFY YOURSELF AS TO THE INSURED STATUS OF ANY COMPANY WHOSE PRODUCTS YOU OFFER YOUR CUSTOMERS AND THE UCDA ASSUMES NO LIABILITY OR LEGAL RESPONSIBILITY FOR ERRORS OR OMISSIONS IN THIS LIST.
Insured Warranty Companies
Assurant Vehicle Protection Services
Avanta Dealer Services Corp.
Canada General Warranty, Inc
Central Administrative Service Corporation, Inc
Coverage One Warranty
First Canadian Protection Plans
Guarantee VC / GVC Premium Warranty Co
Nationwide Auto Warranty
People’s Choice Warranty Ltd
Sym-Tech i-Select Plus Coverage
Trisura Warranty Services Inc.
Veritas Global Protection Services, Inc
1-800-363-5796 (press 2)