People miss payments. Sometimes it slips our mind, we forget to make a payment until after the due date, there is an issue with our automatic withdrawal, we change bank accounts and forget to notify our insurer, or something happens in our lives that prevents us from making a insurance payment.
While missing a payment on your phone or cable bill may not have severe repercussions, non-payment of insurance can quickly land you in some hot water with your insurer and your Ontario car insurance may be cancelled for non-payment. This could lead to more expensive coverage or challenges getting insured.
A non-payment is taken very seriously by insurance companies. Even if you don’t mean to miss a payment, it can still impact your insurability now and in the future.
While every company has different rules regarding a non-payment, sometimes all it takes is a couple of missed payments to result in cancellation. This can make it more difficult for you to get insured, and you may need high-risk auto insurance.
If your provider contacts you or notices the missed payment, you should immediately address a missed payment on your insurance. Sometimes, a payment can get overlooked amid paying other bills, moving money into your account and other factors.
But even one late payment, intentional or not, can cause your insurer to raise your rates or choose not to renew you – so yes, a missed insurance payment can be a big deal, especially if you don’t handle the situation promptly.
Not being able to pay a bill or forgetting to make a payment can be stressful. But it happens. If you find yourself in this situation, you need to be proactive and take steps to rectify the situation as quickly as possible. Below are some actions to take based on your situation:
Failure to make a payment or getting cancelled can affect your car insurance in a number of important ways. Here are some reasons to never overlook the importance of paying on time :
Don’t forget that even if you have been cancelled and you switch to a new insurer, outstanding payments will go into collections and impact your credit rating. That is another factor that could impact your ability to get insured in the future.
Getting insurance after cancellation for non-payment can be a challenge. A recent or previous cancellation due to payment issues will create a gap in your coverage, and new insurers will want to know why you have a gap.
Don’t lie to them. If you lie to them during the application process, they will have grounds to cancel if they find out.
If your policy has been cancelled, your best option is to work with an advisor to see where you can get insured and find the most affordable price.
The amount of time a cancelled for non-payment stays on your insurance will depend on a few things :
Most insurers go back 3 years to see if you have been cancelled for non-payment. Others go back 6 and some look as far back as 10 years.
It will impact your insurance short-term; and it could impact you long-term, even when you switch to a new provider.
Here are some tips to help you avoid payment issues :
Some providers specialize in insurance for drivers who have been cancelled for non-payment. Your costs will likely increase or you may need to pay in installments or upfront. It depends on the provider and your situation.
If you have been cancelled, we can help. We work with all the companies that specialize in this. So we can get you insured at the most affordable price.
If your policy has been cancelled multiple times for non-payment, you’ll need to speak to a broker about Ontario high-risk insurance. You may need to pay outstanding fees and premiums to move forward.
It is illegal to drive if your insurance is cancelled. If you are caught, it could lead to fines and driving suspensions.
Maintaining car insurance is a legal and financial necessity if you want to drive. A cancelled policy can lead to penalties and increased premiums. Prioritize your insurance payments and communicate with your insurer if you are unable to pay to avoid your policy being cancelled.
Categories | Auto |
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Tags | Auto Coverage |
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