I just found this:
https://www.fsco.gov.on.ca/en/auto/broc ... toins.aspx Exclusions in Standard Auto Policy
Recognize that:
Mechanical failure or breakdown, rusting, wear and tear, freezing or explosion within the engine and damage to tires, are not covered unless they result from an insured peril (such as a collision).
Your insurance company is allowed to deny payment for loss or damage caused to the vehicle in an accident, if you or anyone you let drive your vehicle: was unable to maintain proper control of the vehicle because you (or he and she) was driving under the influence of alcohol or drugs; or
is convicted of one of the following Criminal Code offences (or any similar offences under any other law in Canada or the United States) relating to the use, care, or control of the vehicle:
causing death or injury by criminal negligence,
dangerous operation of a vehicle,
failure to stop at the scene of an accident,
driving a vehicle when impaired or with more than 80 mg of alcohol in the blood,
refusal to provide the police with a breath sample,
causing injury when driving a vehicle while impaired or with over 80 mg/100ml of alcohol in the blood, or
driving the vehicle while disqualified from doing so. Except for certain accident benefits, there is no coverage for anyone, including passengers, if:
Your vehicle is driven by a person without your consent, or by someone specifically excluded from your policy by the OPCF 28A (Excluded Driver Endorsement).
The vehicle is used to carry explosives or radioactive materials.
The vehicle is used as a taxicab, bus, or sightseeing vehicle, or to carry paying passengers such as with a ride-sharing service.
If you are intending to participate in a ride-sharing service as a driver, you should check with your auto insurance representative to ensure you have proper insurance that protects the driver, passenger and others.
So what I read here is that they can deny payment for the vehicle only if your son is CONVICTED of the driving with suspended license. Maybe others can chime here if they know anything about it, but it seems to me that you will want to try and fight the charge. It appears to me that if you win then the insurance company can not deny the claim and re-imburse for the car.
So your son should plead not guilty and request a trial and then request disclosure (officers notes). There is a slim chance (very slim) that the officer won't show up, or maybe he made a mistake in his notes. But you should keep all options open.