A car insurance contract is terminated for non-payment in the event of unpaid premiums or late payments compared to what was originally agreed. A cancellation is recorded on the insurers’ database and remains until there is a cancellation by the insurers.
Cancellation due to non-payment
The letter stipulates that the individual must pay the insurance bill within one month. Generally, the usual procedure stipulates that the insurers send a notice of due date as of one and a half months after the due date. And if payment has not yet been made, insurers send a reminder letter for a period of thirty days. And if there is still no payment, the insurers then send a letter of formal notice for the payment of the insurance premiums. Each insurance company acts according to its own modus operandi, but the procedures remain the same for sending the formal notice. And if there is no response from the insured after the deadline specified in the letter of formal notice, the cancellation of the car insurance contract is inevitable.
The consequences of cancellation for non-payment
If there is a problem of non-payment when the premium is paid, the car’s insurance coverage is suspended for a period of one month after the formal notice is sent. In the case of an annual insurance premium, there is no longer any guarantee in the event of non-payment of premiums. This suspension leads directly to the termination of the insurance contract, which can have far-reaching consequences. Even though there has been a termination, the insured still has an obligation to pay the remaining premiums to the insurer. After a period of ten days following the formal notice, both the insurer and the insured may decide to terminate the contract. At the time of the individual’s settlement, the contract takes effect again and is not cancelled. However, in the event of non-payment, the insurance agent could send the information concerning the said insured to AGIRA, a body that brings together all the insurers in France. This body will gather all information concerning unpaid contributions and will notify the insurance institutions if the defendant decides to take out a new contract with a new insurer. In the event of a subscription to a new insurer, the latter will be immediately informed of the individual’s history, whether it be unpaid premiums, malus or claims. The new insurer will therefore be obliged to cancel the contract for intentional misrepresentation.
The first solution in the event of termination for non-payment of the car insurance contract would be immediate re-subscription. It is better not to interrupt the insurance contract any longer in order to avoid having a very high car rate. Non-payment will be taken into account as well as malus and claims. Although there are quite high surcharges, payment and underwriting would allow disputes to be settled and information to be corrected at AGIRA. If the car has not been insured for a period of one month, there will be no impact on the price of the new insurance contract. However, if the deadline is exceeded and it is accompanied by malus and claims, the increase could increase the bill exponentially. The subscription to the new contract takes into account different criteria such as profession, age, bonuses and malus. Also, do not forget to mention the declaration of non-payment in order to avoid possible disputes with the new insurers.
Draw up a car insurance quotation cancelled for non-payment
The quotation for the cancelled car insurance takes into account the non-payment period and the different subscription criteria. In order to draw up an estimate, the different deadlines established by the former insurers must be taken into account. The online quote will therefore be established according to the exact situation of the insured. The quote will allow you to know the exact amount due to the insurer. The insured can then proceed to a new contract with a new schedule, in which he will be required to pay the premiums and surcharges until the old insurer is paid off. Payment will then be made by bank payment and there will be follow-ups to avoid various delays and unpaid amounts. It should be noted that even if the balance due to the previous insurer has been paid, the file registered with the insurance organization remains effective and visible to all insurance organizations.