Have a Cancellation for Non-Payment on your insurance record? Here’s how it affects you.
March 25, 2021.
Cancellation for Non-Payment on your insurance record can have serious effects on your insurance record and credit score. Missed a payment or have a Cancellation for Non-Payment on record? Find out how this impacts your insurance.
So, you’ve missed an insurance payment. Now what?
Unlike more frivolous spending, such as the latest gaming console or impulse Amazon purchases (we’ve all been there!) insurance is something you have to have, and hope you never need to use. Non-payment of premiums on insurance policies has harmful effects on your insurance and credit score.
For bills such as cellphone, electricity, gym memberships, missed payments, though not ideal, are less concerning. Often, missed payments will be met with a late fee and additional workaround to rectify. This is not the case with insurance, as missed payments have serious actions, including a “Cancellation for Non-Payment” note added to your record. If you are considering missing a payment, or have already, here is how a Cancellation for Non-Payment can affect your record:
Void Coverage
When your insurance policy is cancelled for non-payment, your coverage is no longer valid. If you have auto insurance, this means you can no longer legally drive your vehicle. Operating your vehicle without valid insurance poses a significant threat in the event of an accident, interaction with law enforcement, etc.
Ripple Effects
If your policy is void for non-payment, it has ripple effects. Many insurance providers will not issue coverage if there is more than one Cancellation for Non-Payment on record. This is because:
Firstly, your history of missed insurance payments causes concern for collecting payments. Keeping a close eye on your account to ensure documentation and payments are met will require more labour, equalling a higher cost on their end.
Secondly, individuals with a Cancellation for Non-Payment on their record are statistically more likely to be in an at-fault accident than those who do not.
If you have a notice of Cancellation for Non-Payment attributed to your insurance record, you are still eligible for coverage however, it will come at a much higher premium. Insurers with this notice are viewed as high-risk to insure by providers. On occasion, insurance providers may request that the full premium be paid in full upfront.
Do you currently have a Cancellation for Non-Payment on record?
Don’t stress, we will work hard to have you covered. While your options will vary based on your record, the team at Duliban Insurance Brokers will shop the market for the best discounts and coverage available. We work with providers who specialize in high-risk coverage and can provide coverage to clients with non-standard records.
Life happens. If you are struggling to make, have missed, or bounced payments, speak with one of our trained insurance professionals. With a little guidance, our team will assist you in securing coverage so you can re-build your insurance record. Once your record is in good standing, our team will shop the market for a standard policy with more discounts available to you.
Questions about coverage? Your Hometown Broker is here to brighten your day. Get in touch with us here.
