Insurance cancelled by your insurer: What are the consequences?

You failed to disclose your criminal record to your insurer, or you neglected to pay your premiums, and you receive a notice of contract termination by registered mail. PANIC! You’ve just learned the hard way that the insured is not the only one who can terminate their insurance… The insurer can also terminate it at the end of the term, and even during the term of the contract, provided that certain specific conditions set out in the Insurance Code are met.

Even if being terminated by your insurer is not inevitable, it can cause significant difficulties when it comes to finding new insurance. To help you avoid such problems, Assurances Multi-Risques would like to explain what to do if your insurer terminates your insurance policy, but above all, to make you aware of the right steps to take to avoid a prolonged interruption in your insurance coverage.

What is an insurance interruption?

For an insurer, a gap in coverage is the period during which you are not covered by insurance, whether for your car, your home, or even your business. The length of this interruption will affect your chances of finding a new insurer.

Every day, we receive calls from people who are having trouble getting insurance after letting their coverage lapse for too long following termination of their policy by their insurer for non-payment, failure to comply with recommendations, discovery of an undeclared criminal record, increased risk, or a period without a vehicle (and therefore without auto insurance).

Not all insurers have the same policy regarding insurance interruptions: some tolerate one day without coverage, while others allow a few extra days. However, don’t try to test how many days you can extend this interruption without consequences. This little experiment could cost you dearly, and in any case, most insurers are not very flexible on this issue.

Getting insurance after cancellation

There’s no doubt about it: a break in insurance coverage will cause you some headaches when looking for a new insurer. And you must mention it during your search to avoid penalties for misrepresentation!

However, to avoid headaches, our best advice is to not procrastinate and find a new insurer as quickly as possible! The more days that go by without insurance coverage, the shorter the list of insurers who will agree to cover you despite your cancellation. What’s more, due to this limited number, you may see your coverage reduced. Furthermore, regardless of the reason for the insurer’s cancellation of your contract, you should also expect an increase in your premium.

But rest assured, you will always find another insurer willing to cover you. Every insurance company has its own target markets! Just because insurer X no longer wants to insure you does not mean that insurer Y will automatically refuse. To find the best insurer for your now delicate situation, we strongly advise you to contact an independent insurance broker who specializes in higher-risk cases and has expertise with people who have had their insurance canceled.

In conclusion

We understand that factors beyond your control may sometimes lead to the termination of your insurance policy by your insurer. In this case, it is best to react quickly and not allow your insurance coverage to remain interrupted for too long, as this could put your financial assets at risk.

Nevertheless, we encourage you to do everything in your power to avoid ending up in this situation and having to pay a higher premium despite receiving less coverage. If you find yourself in this situation, rest assured that at Assurances Multi-Risques, we will always find you the best coverage at the best price, regardless of your circumstances.