Getting Car Insurance After Defaulting on Payments

Get Car Insurance for Delinquent Payers

Are you known as someone who doesn’t pay on time? If you want to purchase a new car insurance policy, you’ll need to answer questions about your previous insurance policies. One of those questions, for example, is: “Have you ever had an insurance policy denied or canceled?” If you answer “Yes” to this question, your application will likely be rejected.

Insurers take failure to meet contractual obligations very seriously. There is no point in trying to hide this, since most of the information is stored in a database accessible to all insurers. Furthermore, you are committing fraud if you do not answer the questions truthfully.

However, Alpina does offer options for taking out auto insurance after a payment default.

The Consequences of Nonpayment on Your Auto Insurance

It can happen to anyone that you forget to pay your car insurance premium on time.
Perhaps you don’t have enough money in your bank account at that moment, causing you to miss the payment. If you miss a payment or pay late just once, you won’t immediately be considered a delinquent payer.

If you go a long time without making a payment, this could have consequences down the road. It becomes more difficult to compare different insurance policies because not every insurer will accept you if you have a history of nonpayment.

Suspending Your Insurance

First, you'll receive a payment reminder from the insurer stating that the premium hasn't been paid yet. After the first reminder, you'll receive a second one, and then perhaps a final notice.

Are you 30 days late in paying your premium? If so, the insurer may suspend your auto insurance.

This does not terminate the insurance, but rather “freezes” it. This means that, from that moment on, you are no longer insured and are considered a delinquent payer. The RDW will also record that the car is no longer insured. If you do end up paying, the insurer will reinstate the auto insurance on the day of payment or the day after payment.

If you are 50 days or more late, the insurer may decide to cancel your auto insurance. If this happens, you will no longer be insured. The insurer will also attempt to collect the premium through a collection agency.

Pay your overdue premium first

Do you have any outstanding payments with your insurer? Of course, you must always pay any overdue premiums. After all, you have a financial obligation when you purchase insurance. If you fail to do so, the insurer may unilaterally terminate the policy. This is usually stated in your policy terms and conditions as well.

Terminated from your auto insurance policy due to nonpayment

Cancellation literally means unilateral termination or suspension. An insurance company has the right to cancel a policy under certain conditions if you fail to pay. The insurer may cancel the policy in the following situations:

• In the event of nonpayment.
• If you have committed fraud.
• If there are too many damage reports.

Has your auto insurance policy been canceled by the insurer for one of the reasons listed above? If so, you risk being added to the CIS registry, and you may have trouble getting auto insurance from another company.

Car Insurance with CIS Registration

The Central Information System (CIS) is a system that contains records about consumers. You may be registered with the CIS Foundation if you have filed a claim with your insurer. The question of fault is irrelevant in this context. You may also be registered if you have committed fraud when filing a claim.

Insurance companies can consult the CIS to obtain, store, and exchange information about their customers. What the insurer does with that information varies by case and by company.

In most cases, having a CIS registration means you won’t be accepted by a traditional insurance company. For example, if you want to purchase auto insurance and aren’t accepted by a traditional insurance company, you can still get insurance through Vereende.

Take out an insurance policy with Vereende

De Vereende is a company that insures special risks when standard insurers do not. De Vereende always accepts applications for auto insurance, but the costs are higher than those of standard insurers. You also often have a deductible with liability insurance. This deductible must be paid in advance along with the premium. You usually pay the premium a quarter or half a year in advance.

Do insurance companies have a blacklist?

People often think they are on an “insurance blacklist”because they’ve filed too many claims or failed to pay their insurance premiums. No such “blacklist” exists in the insurance industry.

There's always a solution when it comes to new car insurance

Are you behind on your payments? If so, we’ll always work with you to find a possible solution. First, we’ll try to arrange insurance through a standard insurer with whom we partner. If that doesn’t work, you can apply for insurance through Vereende.