What to Do if Your Car Insurance Gets Cancelled

Cancelling a car insurance policy is serious business, and once a short-term insurer has turned its back on you, the financial consequences can be more devastating than you think. These cancelled policies can happen even before the term expires, and insurers can cancel this insurance for a variety of reasons.

Sometimes you get ousted out when you haven’t even done anything wrong. Maybe you’ve just claimed far too often; the insurer thinks that they are paying more in claims than they are receiving in premiums from you as a customer.That’s not where the problems end either because it can become difficult trying to find an insurer who is willing to provide cover.

Your claims may well be legitimate, but if you don’t read your small print, you’ll have missed the part that talks about cancelled policyholder status.

You May Get No Warning

According to the code of conduct from the South African Insurance Association (SAIA), who represents the short-term insurance industry, insurers can cancel your policy. They are not obliged to consult you.

In other countries, insurers must provide some notice of their intentions to cancel your insurance.

But that’s not all.  There additional are other reasons why an insurance company might rescind your cover. It can also have something to do with your behaviour:

▪You’re late with their premiums or you skip them too often
▪You’ve misrepresented yourself on their application forms
▪You’ve claimed too often as we’ve mentioned above
▪Car insurance fraud is rife as people try to get money from an insurance company. If the insurance company discovers this, and they can lay criminal charges and cancel your policy
▪This reason may seem unfair, but it happens. In some instances, where people have serious health issues such as epilepsy, the insurance company can cancel their policies. Such an illness can impair your driving abilities. Certainly, you will find your policy cancelled if you are aware of your condition but have not informed the insurer about it.

Find Out a Few Things

The trouble with cancelled car insurance is that even if you do manage to find cover from some or other insurance provider, now you’re going to have to pay more for coverage.

If you do receive a cancellation of your policy, you should deal with it quickly to avoid becoming uninsured even a short time. If you think that this cancellation has been unfair, call the insurance company for details. You’ve also got a right to complain to the Ombudsman if you believed the insurance company had treated you unfairly.

Be Nice to the Insurance Company

The insurance companies are sometimes irritating the way they behave. Arrive Alive is an excellent online resource. They provide information on why the company insured your car insurance policy and what to do about it.

Small wonder people prefer to go without insurance. However most of the reputable insurance companies do want to keep you as a customer. They want you to pay your premiums on time and not claim too much from them.  Then you can be more confident that your insurance company won’t cancel your policy.

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All info was correct at time of publishing October 16, 2018