Over six million vehicles on Canadian roads have an unresolved safety recall, according to Transport Canada estimates. That means roughly one in five cars you see on the highway could have a known defect that hasn’t been fixed. If you’re driving one of them and get into a collision, your insurance claim could be denied entirely — leaving you to cover thousands in damage out of pocket.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Most drivers assume a recall is just a free repair — an inconvenience, not a financial risk. But the connection between recalls and car insurance runs deeper than most people realise. A recall itself won’t raise your rates, but what you do — or don’t do — about it can change your coverage, your premiums, and even whether a claim gets paid. Here’s what you actually need to know.
The central concept here is duty of care — the legal expectation that you take reasonable steps to keep yourself and others safe. In insurance terms, it’s the difference between a claim being paid and a claim being denied.
How a recall affects your insurance rates and coverage
Here’s the part that catches most people off guard: a recall notice itself won’t cause your premium to go up. Insurance companies don’t raise rates simply because a manufacturer issued a safety defect notice. What matters is what happens next — and whether you respond.
If you get the recall repair done promptly and later get into a collision caused by that same defect, your insurer will likely treat it as a normal claim. They may even seek reimbursement from the manufacturer, which means your rates stay unaffected. But if you knew about the recall and ignored it, the situation flips. Insurers can argue that you failed to take reasonable precautions, and they may deny your claim entirely.
Beyond claim denial, there’s a subtler effect. Insurers now track recall history when calculating premiums. Vehicles with open recalls statistically file more claims, and insurers adjust their rates accordingly. Even if you never have an accident, an unresolved recall showing up on your vehicle history report can lead to a higher premium at renewal. The table below breaks down how different scenarios play out.
→ Scroll right to see all columns
| Scenario | Claim likely paid? | Premium impact |
|---|---|---|
| Recall fixed, defect still caused crash | Yes — insurer may pursue manufacturer | None |
| Recall known but ignored, crash occurs | Likely denied — breach of duty of care | Possible increase at renewal |
| Recall unknown, crash from defect | Yes — no negligence | None |
| Open recall on record, no crash | N/A | Possible small increase |
What I tend to notice is that most drivers focus on the recall repair cost — which is free — and miss the insurance angle entirely. The real cost isn’t the repair. It’s the coverage you lose by not acting.
Common mistakes drivers make with recalls and insurance
Assuming the recall will be handled automatically
Manufacturers mail recall notices, but mail gets lost, addresses change, and some notices end up in spam folders. Transport Canada’s Motor Vehicle Safety Recalls Database lets you check your vehicle identification number (VIN) for free. If you assume no news means no recall, you could be driving with a known defect for years. A quick VIN check takes two minutes and removes the uncertainty.
Thinking a recall repair is optional
Some drivers skip recall repairs because the issue seems minor — a loose trim piece, a warning light glitch. But insurers don’t distinguish between “minor” and “major” recalls when assessing negligence. If the recall relates to a safety system and you ignored it, the insurer has grounds to deny a claim regardless of how trivial the defect seemed. The repair is free and takes a few hours at a dealership. Skipping it can cost you thousands.
Believing your insurer will tell you about recalls
Insurance companies don’t send recall alerts. That’s the manufacturer’s responsibility. However, many insurers now pull vehicle history reports during underwriting, and an open recall can show up there. You might discover the recall exists only when your premium goes up or your renewal is flagged. By then, the damage to your risk profile is already done.
Waiting too long to schedule the repair
Even if you intend to get the recall fixed, a delay of several months can create problems. If you get into a collision during that window, the insurer can argue you had reasonable time to act and chose not to. Most recall repairs are available within weeks of the notice. Booking it immediately closes the window of vulnerability.
What to do when you receive a recall notice
Check your VIN immediately
Go to Transport Canada’s recall database and enter your 17-character VIN. This confirms whether your specific vehicle is affected. Some recalls only cover certain production batches, so don’t assume your car is included just because you heard about a recall for that model. The database is the only definitive source.
Contact the dealership and book the repair
Once confirmed, call your manufacturer’s dealership and schedule the repair. Most recalls are fixed at no cost, including parts and labour. Ask how long the repair takes — some are done in an hour, others require the vehicle overnight. Get a written confirmation of the work completed and keep it with your service records. This document is your proof if an insurer ever questions whether you acted.
Notify your insurance company (optional but smart)
You don’t have to tell your insurer about a recall repair. But if you want to be thorough, a quick note to your broker or agent creates a paper trail. If a claim ever arises related to that defect, your insurer can see you addressed it promptly. This removes any ambiguity about your duty of care.
What to do if the repair doesn’t fix the problem
In rare cases, the recall repair doesn’t fully resolve the defect. If that happens and you later get into a collision, your insurer may still pursue the manufacturer for costs. Keep all documentation — the recall notice, the repair invoice, and any follow-up complaints. This strengthens your position that you acted reasonably.
Upcoming rule changes for 2025–2026
As of January 1, 2025, manufacturers must provide online recall details, with full compliance expected by mid-2026. This means checking recall status will become easier, but it also means insurers will have better access to recall data. Expect more insurers to factor open recalls into premium calculations as this data becomes more standardised. If you have an unresolved recall now, getting it fixed before these systems go fully live could save you from a rate increase later.
Frequently asked questions about recalls and car insurance
Will my insurance go up just because my car was recalled? ▾
Can my claim be denied if I didn’t know about the recall? ▾
Does a recall affect my car’s value for insurance purposes? ▾
What if the recall part isn’t available yet? ▾
Can I sell a car with an open recall? ▾
Does a recall affect my comprehensive or collision coverage differently? ▾
Why acting on a recall now protects your coverage later
The six million unresolved recalls on Canadian roads represent six million opportunities for a claim to be denied. The repair is free, takes a few hours, and removes a risk that could cost you your entire coverage. As insurers gain better access to recall data through the 2025–2026 online reporting requirements, the penalty for ignoring a recall will only grow. Getting it fixed today is the single most effective step you can take to protect both your safety and your insurance.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read tips for car insurance with a salvage title in Canada.
Sources and Further Reading
Car insurance claims after road debris incidents — Practical guidance on handling claims when the cause of damage isn’t another driver.
Proof of loss requirements for car insurance — What documentation you need when filing a claim and how missing paperwork can delay or deny payment.
Rates.ca (2024). What happens to your car insurance if your car is recalled? 🔗
BeatMyInsurance (2024). Recalls can increase car insurance premium. 🔗
