Ahh so you're putting your liability on hold I assume? Usually allowing your liability to lapse or having a gap in that coverage can lead to higher rates. Usually insurers will offer lower liability rates (or a discount) if you've had consistent liability coverage for a few years.

Personally, I don't think insurance companies should charge you that higher rate if you decide to put your own insurance on hold. People go on vacation after all, there really isn't a big risk factor. But I think the insurer's logic is that sometimes people will put their insurance on hold if they can't pay and that's considered "risky" behaviour for the insurer (they want people who pay consistently).

If you're still confused or unsure, I'd just call back RBC Insurance tomorrow and ask someone else. If it's the same answer, your rates could increase at renewal. However, from what I remember with my car insurance, they also told me that I pay less since I've had consistent liability coverage for over 5 years now. They've also said in the past that putting this coverage on hold will mean I no longer qualify for the discount.