• Insurance cancelled by your insurer: What are the consequences?

    24 October 2018Christopher Johnson

    You have not informed your insurer that you have a criminal record or you have omitted to pay your insurance premium, and you just have been informed that your insurance contract is about to be terminated through a registered letter. PANIC MODE! You have just learned the hard way that clients are not the only ones who can cancel an insurance contract… Indeed, an insurer is allowed to terminate his contractual relationship with you at the contract’s expiry date or even before that, providing that a certain number of insurance law requirements are met.

    Having your insurance contract canceled by your insurer is not a life threatening event, but it can cause you a lot of trouble when looking for a new insurer. In order to avoid this, Assurances Multi-Risques would like to explain what to do in such a case, but also how to avoid finding yourself without insurance coverage for a long period of time.

     

    Insurance interruption – What does it mean?

    For an insurer, an insurance interruption is the period during which your car, your home or even your business was not covered through an insurance contract. The time spent without insurance will impact your chances of finding a new insurer. We frequently receive inquiries from people who are having troubling getting insurance because they have neglected to subscribe to insurance following the cancellation of their previous contract due to unpaid premiums, failure to implement recommendations, a non-divulged criminal record, an increased risk profile or a long period without a car (thus without car insurance).

    All insurers do not have the same tolerance regarding insurance interruptions. Some will tolerate a one-day period, others will tolerate a few days without insurance. Do not try to test the limits in this regard as most insurance companies are very stringent on this matter.

     

    Getting insured after an insurance coverage cancellation

    If your insurance has been cancelled, get ready to experience a few headaches when trying to find a new insurer. Also, be sure to mention this occurrence when looking for a new insurer if you want to avoid being sanctioned for making a false declaration! To avoid making things worse, we urge you not to procrastinate when it comes to finding a new insurer. The longer you wait to get new insurance coverage, the shorter the list of possible insurers will become! Moreover, whatever the reason your previous insurer has cancelled your insurance, you can expect to see your amount of insurance coverage diminish and your premiums increase.

    Don’t despair, however. You will always be able to find a new insurer since all insurance companies have target markets. Therefore, even if insurer X refuses to insure you, insurer Y might well agree to do so. In order to help you to rapidly find a new insurer, we strongly suggest that you contact an independent insurance broker who has experience in handling difficult to insure clients, especially clients like you, who have had their insurance policy cancelled.

     

    In conclusion, we understand that it’s possible that you have had your insurance contract cancelled due to uncontrollable circumstances. We recommend, however, that you find a new insurer as quickly as possible to avoid imperilling your financial wealth. We also encourage you to do everything in your power to avoid such a situation as you will have to live with higher insurance premiums and lower coverage. If you ever find yourself in this difficult situation, know that Assurances Multi-Risques brokers will be able to find you the best coverage at the best price possible, whatever your circumstances.