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 does not go through? Unfortunately, whether this situation is circumstantial or repeated, it can have very serious consequences.

En effet, tous les jours nous recevons des appels de nouveaux clients dont les assurances ont été annulées pour non-paiement de prime. Le cabinet de courtage indépendant Assurances Multi-Risques souhaite donc vous informer des conséquences possibles d’une annulation pour non-paiement de prime.

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 having your insurance policy terminated. 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 terminates 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 trust us, finding a new insurer after this kind of mishap is really complicated and difficult!

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

Yes. Cancellation of insurance for non-payment of premiums will result in an increase in your next premium with a new insurer. The premium required for auto or home insurance may even double or triple in some 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.

Le courtier d’assurance indépendant est le mieux placé pour vous guider et vous diriger vers un assureur spécialisé dans les assurances hors normes. Vous constaterez par le fait même qu’il y existe beaucoup moins d’assureurs « sous-standards » que d’assureurs réguliers!

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 tips 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 discover that you have had your insurance policy terminated for non-payment in the past, they will refuse to compensate you.
Avoid a gap in coverage. If your auto or home insurer cancels your policy, contact a broker so they can quickly find you a new insurer. If you have 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 further questions, or if you find yourself in such a situation, please know that you can contact us at any time! We are independent brokers. We are here to help you by listening to you and giving you sound advice. Our goal is to ensure that you receive the best possible service.

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