What does lapse mean in insurance?

Cancellation by yourself

If you want to change to another insurer at the end of the term, you can stop or cancel the insurance yourself. When your car is sold or stolen, or when you have the car suspended, you can have the car insurance cancelled. Have you cancelled the car insurance? Your insurer will then receive a declaration of cancellation from you. In the past, the number of claim-free years accumulated was stated in the cancellation statement. Nowadays the number of claim-free years is stored digitally.

Cancellation by the insurer

Under certain conditions, the insurer has the right to discontinue an insurance policy, also called cancellation of an insurance policy. Your insurance can be cancelled in the following situations:

• non-payment

When you have forgotten to pay for your car insurance, the insurer will first send you a reminder. As long as you pay on time, there is no problem. However, if your payment is not made for thirty days, the insurer may suspend the insurance for your car. You will then no longer have car insurance. After 50 days of non-payment, the insurer can cancel your car insurance. The car insurance will then be cancelled.

• fraud

Your insurer also has the right to terminate the car insurance in case of insurance fraud. People often think that insurance fraud involves very big mistakes. But deliberately giving wrong information during the insurance application also falls under this denominator. This is for example the case when you deliberately try to mislead the insurer.

• too many damage reports

Damage to your car can happen to anyone. Why else would you insure yourself against it? However, when you do report a lot of damage, the insurer will ask questions. In case of too many claims, your insurer may choose to stop the car insurance.

How to get car insurance after expulsion?

If your car insurance has been cancelled due to fraud, non-payment or too many claims, you risk a CIS registration. CIS is the abbreviation for Central Information System. Stichting CIS is an organisation that promotes the interests of insurers. All insurance details that may be important to insurers are stored here. When someone has committed fraud, has driven an uninsured vehicle or has suffered damage, this is registered by CIS. An insurer can refuse to insure a policyholder on the basis of the CIS registration. You will then not be accepted as a policyholder by a regular insurer.

Fortunately, with the insurance company De Vereende you can still be accepted, because they specialise in special risks. This is why De Vereende has a broader acceptance policy than most insurance companies. In principle, De Vereende accepts everyone.

The cost of car insurance after cancellation

Taking out a car insurance policy with De Vereende involves some extra costs. The higher the insurer estimates the risk, the higher these extra costs will be. This applies to all insurance and is also the case with De Vereende. That is why the premium with De Vereende is more than the amount you pay for a premium with a regular insurer. Usually you will also have to pay a deposit. This deposit can be called upon by De Vereende if you do not pay the premium on time, and this deposit will then be used to settle the unpaid premium. If you pay on time each month, the deposit will simply be refunded to you at the end of the policy.