Apr 13, 2020
Has Your Car Insurance Been Cancelled For Non Payment?
People miss payments. Sometimes it just 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 payment. Insurance is no different, and many people miss payments.
While missing a payment on your phone or cable bill may not have severe repercussions, non payment of car insurance can quickly land you in some hot water with your insurance company and your policy could get cancelled for non payment.
What Is The Impact Of A Non Payment On Your Car Insurance?
A non payment is taken very seriously by insurance companies. Even if you don’t mean to miss a payment, it can still have an impact on your insurability now and going forward.
While every insurance company has a different rules in regards to a non payment, sometimes all it takes is a couple of missed payments to result in cancellation of your insurance policy. This can make it more difficult for you to find a new insurance policy, and you may need to get high risk auto insurance.
Is A Missed Payment On Insurance A Big Deal?
A missed payment on your car insurance or a missed payment on your home insurance should be addressed immediately. Whether your insurance company contacts you or you notice the missed payment, address the issue immediately. Sometimes amid paying other bills, moving money into your account and other factors, a payment can get missed.
But even one late payment, intentional or not, can cause your insurer raise your rates or choose not to renew your policy – so yes, a missed insurance payment can be a big deal, especially if you don’t handle the situation in a timely manner.
How Do Missed Payments Or Policy Cancellations Affect My Car Insurance?
Failure to make a payment or getting your policy cancelled can affect your car insurance in a number of important ways. Here are some reasons to never overlook the importance of paying your premiums on time include :
- Cancellation : Insurance cancelled for non payment and you could have a lapse in insurance coverage.
- Increased Premiums : A premium rate increase upon renewal.
- Insurance History : Non payment will be noted on your insurance history.
- Additional Fees : Late payment or NSF fees may be charged by the insurance company.
- Payments : Insurance companies may require you to pay your premiums upfront in 3 or 6 month terms or even a complete full year term.
Don’t forget that even if you have your policy cancelled and you get home or auto insurance from a new insurer, outstanding payments will go into collections and can impact your credit rating. That is another factor that could impact your ability to get insurance in the future.
What Can You Do If Your Car Insurance Is Cancelled For Non Payment?
Car 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 insurance history and new insurers will want to know why you have a gap in coverage.
Don’t lie to them – if you lie to them during the application process, they will have grounds to cancel your policy if they find out. Tell them the truth, even if it means higher car and home insurance rates.
As with any other form of insurance, your best option is to shop around and work with an insurance provider to compare quotes to get the cheapest non payment insurance rates possible. If you fear that you could be cancelled for non payment, it’s best to act now to explore your options and compare quotes before you are actually cancelled by your current provider.
How Long Does An Insurance Cancelled For Non Payment Stay On Your Insurance History?
The amount of time a cancelled for non payment stays on your insurance record will depend on a few things :
- Whether or not you are with the same insurance company.
- If you have switched insurance providers.
- The amount of times you have been cancelled for non payment.
Most insurance companies go back 3 years in your insurance history to see if you have been cancelled for non payment. Others go back 6 and some look as far back as 10 years when providing quotes for insurance coverage.
A cancellation for non payment will impact your insurance short term; and it could impact you long term, even when you switch to a new insurance company.
What Are The Best Tips To Help From Getting Cancelled For Non Payment?
Here are some tips to help you avoid insurance payment issues :
- Pay Your Premium Annually : You can pay your full annual insurance premium up front. Most companies offer discount for doing that and you could save up to 10%.
- Monthtly Payment Reminders : Set a reminder in your phone to make your monthly payment.
- Auto Payments : Set up automatic withdrawal or payment from your bank account or credit card.
- Account Balance : Have a buffer in your account to ensure you have enough money for payment.
- Lower Rates : Explore options to lower your insurance rates.
How Can You Get Car Insurance After Being Cancelled For Non Payment?
Some insurance providers specialize in car insurance coverage for drivers who have been cancelled for non payment. So you will be able to get coverage. Your premiums will likely increase or you may need to pay your premiums in installments or upfront. It depends on the provider and your situation.
If your car insurance has been cancelled for non payment we can help. Speak with one of our car insurance experts. We work with all the insurance providers in Ontario that specialize in coverage for drivers who have had their policy cancelled for payment reasons. We can get you coverage and at the best rates.
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