Published on : 31 October 20194 min reading time
You’re in a bad financial situation. Your car insurance policy has been terminated, and you are looking for possible ways to get out of it.
Car insurance is a service that provides financial services for land vehicles. Indeed, this service covers any damage caused to or with your vehicle. Before subscribing to any insurance, it is essential to find out the amount to be paid. This payment obviously respects a monthly deadline, at the end of which the insured must pay the agreed amount. If the subscription to a car insurance is mandatory to be able to drive, non-payment of this insurance will result in the termination of your contract.
Who to turn to in case of auto termination?
It is strictly forbidden to drive without a registration document. The risk is to be fined very expensively, to be deprived of a driving licence for a period of 3 years, even going to the confiscation of the vehicle. And yet your insurer terminated your contract because you did not pay your insurance. Click here to find a new contract. Indeed, the first reflex would be to seek new insurance, which does not seem obvious because you are now considered a bad payer. Fortunately, some insurers have specialized in termination profiles for non-payment. The insurance companies concerned even offer specific packages adapted to this type of profile. Take a moment and look at an insurance comparator to get the most interesting quote.
Non-payment of the insurance may be the cause of third parties. But if you have not fulfilled your obligation because of financial problems, another outcome exists for you. It’s about changing vehicles. Take a less powerful and less expensive one than the previous one to lower the cost of your contribution. You can also assign certain benefits to which you have subscribed.
Cancelled for non-payment: why?
Sometimes people don’t even realize that their insurance company has terminated their contract. And for good reason, the delay and non-payment do not necessarily come from the insured. The arrears may be since you have changed bank and therefore bank identity. Information that you have given to your insurer, but that he has forgotten to update before the expiry date. Therefore, he will take the sample using your old RIB. It may also be a problem for the bank issuing your direct transfers. For example, your banker refused to allow your insurer to deduct your contribution because you exceeded the authorized overdraft threshold. In this event, your insurer will soon register a cancelled car insurance policy for non-payment against you. This is a frequent occurrence since people do not often have the automatic ability to check monthly that their insurance premium has been deducted. In addition, the contribution must be paid within 10 days of the due date, in accordance with the regulations dictated by the Insurance Code. After this period, your insurance company will send you a registered letter to remind you to fulfil your obligations. It will wait about a month for you to act. At the end of these 30 days, your insurer will definitively suspend your contract.
Termination of car insurance results in….
Be aware that you should be required to pay the amount of your outstanding premium. In addition, it will be increased by legal interest calculated pro rata to the late payment. The most serious consequence is that you must look for a new contract. Indeed, once confirmed as a bad payer, the insured will be registered with AGIRA, an association for the management of information on insurance risk, for a period of 2 years. Thereafter, when applying for new insurance, the company approached will not hesitate to consult AGIRA’s records to determine that you have been terminated for non-payment. This will indicate his reluctance to accept your request.
Some recommendations include
Paying on time is the most logical solution to avoid having your car insurance terminated. What might be in your favour would be to order an annual transfer of the insurance premium. That is, to pay all twelve-monthly instalments at once. In this way, you are protected against transfer errors by the bank, which can delay your payment or completely terminate your contract. You can also protect yourself against the negligence of your insurer in updating your bank details.
In addition, if your insurance company sends you a letter of formal notice. The first reflex you should have is to follow up on this letter; by responding to it. In it, explain why you were unable to pay your contribution. This action reflects your commitment to reimburse your insurer in good faith.
Can my insurer require a reason if I request termination?
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