Cancellation of your insurance policy for non-payment is a situation that can have consequences for your next insurance premium. There are several ways to pay for insurance. Your insurer can automatically deduct your premium each month directly from your bank account or credit card.

What happens if your premium payment fails? Unfortunately, whether this situation is circumstantial or repeated, it can have very negative consequences.

Every day, we receive calls from new customers whose insurance policies have been canceled for non-payment of premiums. The independent brokerage firm Assurances Multi-Risques would therefore like to inform you of the possible consequences of cancellation for non-payment of premiums.

Cancellation of auto and home insurance

After one or more payments have been canceled due to insufficient funds, your insurer may decide to cancel an insurance policy.

We would like to point out that each insurer has different policies in this regard. Some insurers cancel the insurance contract after the first unsuccessful payment attempt. Others do so after two or more attempts.

Also, keep in mind that if you have a good record with your former insurer (no history of non-payment), you are more likely to avoid termination of your insurance contract. This goes without saying; if you are a loyal customer with a clean record, your insurer will be more lenient towards you. Your history with your insurance company therefore has a significant impact.

It is recommended that you pay your insurance premium as soon as you receive your contract. This is particularly important if you are paying by check or bank transfer in a single payment. This will help you avoid forgetting to make the payment.

Termination and deadlines

When an insurer cancels an insurance policy, the customer must find new auto insurance within 30 days. For home or business insurance, the customer has 15 days to find new insurance.

And believe us when we say that finding a new insurer after this kind of mishap is very complicated and difficult!

Will your premium be higher due to cancellation for non-payment of premium?

Oui. Une annulation d’assurance pour non-paiement de prime entraînera une hausse de votre prochaine prime chez un nouvel assureur. La prime exigée en assurance automobile ou habitation peut même doubler, voire tripler dans certaines situations !

It will also be difficult to find an insurer who will insure you after a cancellation for non-payment of your premium.

How can I get insurance after my policy was canceled for non-payment?

We strongly advise you to contact an independent insurance broker who specializes in insurance for people who have experienced complex situations.

An independent insurance broker is best placed to guide you and direct you to an insurer specializing in non-standard insurance. You will find that there are far fewer “substandard” insurers than regular insurers!

Please also note that a cancellation for non-payment of premiums will remain on your record for between two and five years, depending on the insurer.

Some advice from AMR for you:

We strongly advise you to avoid making false statements when looking for a new insurer. Be aware that when you make a claim, insurers will investigate your profile. If they find out that you have had your insurance canceled in the past for non-payment, they will refuse to compensate you.
Avoid a gap in your insurance coverage. If your auto or home insurer cancels your policy, contact a broker so they can quickly find you a new insurer. If you experience a gap in coverage, your premium will definitely cost you more.
Pay off any outstanding balance with your former insurer as soon as possible. If the balance remains unpaid, it could further damage your credit rating.

If you have any additional questions, or if you find yourself in such a situation, please know that you can contact us at any time! We are independent brokers. If you encounter insurance problems, we are here to help you by listening to you and giving you good advice. Our goal is to ensure you get the best service possible.

We can assist you in your efforts to find a new insurer!