Can a Car Insurer Cancel My Policy If I don’t Pay
This one comes from Dawn in Shropshire, and her question “Can my insurer cancel my policy if I don’t pay?” goes a lot deeper than simply not paying, because Dawn paid monthly to spread the cost over the year. In the video you’ll find out how Dawn Had her problem solved and what you should do in similar circumstances
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Simon, began his working life with Messrs. Coutts & Co, bankers to the Queen. During a career which has, thus far, spanned 31 years, Simon has served time as a Bank Manager, Financial Adviser, and General Manager of a major UK Broking Firm, which later became London Scottish Broking. A Certified Mortgage Specialist, Simon set up his own broking firms in late 2002... Find out more about Simon
Mark is a multiple best selling author on food, health and business. He has had decades of experience in natural health and is an outspoken advocate of natural nutrition and drug free living. He's also the founder and executive editor of Low Carb Mag. More about Mark
Your Due Diligence
Make sure you have all your receipts for payment, the policy documents and so on. Keep the originals and only ever give over copies. No matter how much they plead
The Outline Solution
- If You pay in one lump sum each year.
Clearly the Policy cannot be cancelled for non payment if you have already paid it. However the Insurer can decide not to accept your business the next year if , for example, you have an argument and insult a member of staff. So long as something like that hasn’t happened then no, they cannot cancel it.
- If you Pay by Monthly payments.
The vast majority of car insurance, where paid monthly, is actually financed by a 12 month credit agreement. This means that you, the insured party, took out a loan to pay the premium in one lump sum (so see above), and you repay the loan company; capital plus interest to service the loan. So while you may still owe the finance company for the loan – the insurance premium has been paid in full and where that is the case – you are insured.
Possible Arguments Against You
- Monthly payments where no loan is involved.
In this case then yes, the insurer can cancel your policy in line with the contract, in much the same that you can: usually by giving 30 days notice.
The Almost Legal Info
Returning the Insurance Certificate
Not many people will be aware, but so long as you are in possession of the Certificate of Insurance, you are still insured: You can check this out with the Motor Insurance Bureau.
Need More Help?
Ultimately, it starts with you. If you’ve had enough and want to start making your point, or your insurance company simply will not listen to you don’t think you are alone. We’ve put together some examples of successful complaints, including letters, responses, and the strategies employed. So, if you want a more detailed guide together with templates of letters you can personalise and send to them or any other company for that matter; please go to…