Car insurance cancelled by insurer
An insurer may cancel your auto insurance unilaterally. This can have major consequences. Often this happens due to non-payment, fraud or too high a risk profile. You then get a CIS registration and getting a new car insurance becomes more difficult.
Consequences of termination by insurer
An insurer does not have to wait until the expiration date of the insurance policy to do this. In certain situations, they may simply cancel the car insurance policy mid-term.
The termination of your car insurance by the insurer can have major consequences. If you are (temporarily) not insured after termination of the insurance, you will have to pay for any damage you cause yourself. Your car is no longer insured and you can be fined by the RDW and the Police.
The termination is then registered in the Central Information System (CIS). This makes taking out new insurance with another company more difficult.
So make sure you always pay your premium on time, report claims honestly and comply with the policy terms.
5 reasons why an insurer may cancel your car insurance policy
Why an insurer terminates your car insurance can vary by situation. Here are the most common reasons why car insurance is terminated.
1
Default of premium
One of the most common reasons for cancellation is non-payment. Paying the premium is the most important commitment you make when you purchase auto insurance.
If you don't pay your car insurance premium on time, you usually get a reminder and demand letter first. Does payment remain unpaid? The insurer often terminates the policy after a payment delay of more than 30 to 50 days.
Has your insurance been terminated for non-payment? Then sometimes you can restore your policy by still paying the overdue premium. This is only possible if the insurance has not yet been permanently terminated. So contact us as soon as possible to discuss the possibilities.
Prevent late payments: check that your premium has been paid
Insurers usually offer the choice of paying the premium monthly or annually. Many people choose direct debit, so the premium is always deducted on time and you don't run the risk of having your car insurance cancelled due to a forgotten payment.
Always check carefully that the premium has actually been paid because only then will you remain insured and avoid problems with your car insurance.
Some common reasons how you can fall behind on payments:
- Failed direct debit. Your bank account had insufficient balance or the authorization has expired. In that case, the debit fails, often without you noticing it right away.
- Wrong account number or error in data. If you have just switched banks or there is an error in your data, the premium payment may go wrong without warning.
- Not receiving a reminder. Sometimes, due to a change in email address or spam filter, you don't receive a payment reminder. Then you think everything is going well, while the premium remains outstanding.
- Termination with old bank without standing direct debit authorization. If you switch to another bank but do not set up a standing direct debit authorization, the premium will no longer be deducted automatically.
- Forgotten payment with manual transfer. If you pay manually and do not use a direct debit, the risk of forgotten payments is higher.
2
Fraud or dubious claims
If you intentionally provide false information or submit claims that are false, the insurer considers this fraud. This is serious grounds for immediate termination of your auto insurance. For example, think about how a claim occurred or who was driving at the time of the accident. Or listing existing damage as new or filing fabricated events.
Fraud almost always results in a CIS registration. In such a case, the premium with some insurers can be a lot higher if you try to get new insurance somewhere else.
Furthermore, when taking out a new insurance policy, you may have to pay the annual premium in one lump sum as a condition after termination for non-payment or damage.
3
Too many claims or risky driving behavior
An accumulation of claims, even if legitimate, can lead to you being classified as "high risk. For example, if you claim damages 3 times in one year after minor collisions, each of which is legitimate.
Insurers see this pattern as an indication that you are at risk more often or driving less carefully. Even if you turned in a claim form neatly every time, the risk may become too great for the insurer.
If you are rated as high-risk, the insurer may decide to terminate your policy early, absent default or fraud. Do you doubt whether this is true for your situation? If so, contact your insurer.
4
Failure to comply with policy conditions
Insurers impose conditions in the policy, such as providing documents on time, having the vehicle inspected or correct registration of drivers. This means you must always honestly declare who the regular driver of the car is.
If the insurance is in a parent's name, but the vehicle is actually being used by a younger driver (such as a child), this can be seen as concealment. In the event of a claim, this could result in denial of benefits or even immediate termination of insurance.
5
A driving disqualification or criminal record
Do you have a current car insurance policy and get a driving disqualification or criminal record? Then the insurer will not be notified of your CIS registration. However, there are situations in which the insurer can find out about your driving disqualification or criminal record that will affect your car insurance.
For example, does a claim come in from the other party with a police report or do you file a claim yourself? And does this reveal that you have a driving disqualification or criminal record? Then the insurer can still cancel your car insurance.
A CIS registration due to cancellation of insurance.
If your car insurance is cancelled or expelled by the insurer, this is recorded in the national database of the CIS Foundation. This database contains information about defaults and cancellations, among other things. Every insurer has access to a CIS registration and uses this information when evaluating new insurance policies.
A previous insurer can also check this registration with the CIS foundation when you switch, and a new insurer checks this data to determine whether you are accepted and under what conditions. This makes it very difficult to take out a new car insurance policy with a regular insurance company if your car insurance has been cancelled.
Read more about what a CIS registration is.
What to do after cancellation from the insurer
Is your car insurance being discontinued? Make sure your car is insured as soon as possible. You are obliged to keep your car insured as long as the license plate is in your name. After termination of the insurance you are responsible for this yourself.
Contact your current insurer to see if you can rectify the situation. For example, by still paying the overdue premium.
Getting a new car insurance policy
Can't recover your previous car insurance? Then try taking out a new car insurance policy with another insurer. Keep in mind that a registration for non-payment or a cancellation due to damage may mean you pay a higher premium or your application will be rejected.
Every insurer has access to the CIS registry so it is more difficult to obtain normal auto insurance.
Take out insurance with the Vereende
If no regular car insurance company wants to accept you anymore, you can always turn to the Vereende. This insurance company specializes in insuring special or increased risks such as clients with a CIS registration.
This is because they run a higher risk by accepting you as a policyholder. So in return, there is a higher premium. Alpina is an intermediary of the Vereende. This means that through us you can take out car insurance with the Vereende.
Please note that insurance with the Vereende can only take effect after you have paid the first premium. And after you have signed and returned the application form you received from us by e-mail.
Car insurance self-cancellation
Not only the insurer can cancel. You can also terminate your car insurance yourself. For example, if you switch to another insurer or sell your car.
When switching
After the first year of insurance, in most cases you are allowed to cancel daily, with one month's notice. In most cases, after the first year of insurance, you may cancel your car insurance daily, with one month's notice.
Did you pay too much premium, for example because you stopped the insurance earlier than planned? Then you usually get the excess premium paid back from your insurer. Check this with your new insurer.
When canceling, make sure you don't pay double premiums when you switch to a new insurer. Make sure the effective date of your new car insurance matches the end date of your previous insurance, so that you are always covered.
When selling your car
When selling your car, you can stop the car insurance as soon as the car is sold. The insurance obligation then passes to the new owner. This proof shows that the car is no longer in your name. Without this proof, the insurance obligation remains and you continue to pay premiums.
You need a release certificate to prove that the car is no longer in your name. The RDW checks whether the car is insured and whether the deregistration has been processed correctly.
Claim-free years and your insurance
Your claim-free years also play a big role when buying a new insurance policy, because they affect the premium. For every year that you do not report a claim, you gain 1 claim-free year.
The more claim-free years you have, the lower your premium becomes. You can get up to 80% discount on your car insurance. Do you report damage? Then you lose your claim-free years.
Frequently asked questions about insurer cancellation of auto insurance
Why can my car insurance be cancelled by the insurer?
An insurer may cancel an auto insurance policy if there is a valid reason such as non-payment, fraud or excessive risk. The reason must be clearly communicated and fall within the policy terms.
In case of non-payment, you usually get a reminder to pay the premium first. Don't you do this? Then you are in arrears and the insurer may decide to permanently cancel your car insurance.
Can an insurer just terminate my car insurance?
No, an insurer may not terminate the policy without a valid reason. Termination is only allowed in specific situations such as fraud, non-payment or if there is an excessive claims history. This must be announced in writing.
What are common reasons for cancellation of auto insurance?
Common reasons include: structural default, filing multiple or dubious claims, fraud or if you have too high a risk profile.
Can car insurance be cancelled after driving disqualification or criminal record?
Yes, you can. If you have a current car insurance policy and get a driving disqualification or criminal record, the insurer will not automatically be notified. But if a claim is made where it appears that you were not allowed to drive, the insurer may still decide to terminate your policy. For example, through an official report from the other party or with your own claim.
Can I still get car insurance somewhere else after cancellation?
It depends on the reason for cancellation. In case of non-payment or fraud, it may be difficult to get regular insurance elsewhere. In that case, you can turn to the Vereende, an insurer for hard-to-insure risks.
Related pages for canceling your car insurance policy
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