An insurance policy for defaulters
Has your insurance ever been stopped due to late payments? Or have you been refused a new application? If so, you may be a defaulter. Insurers see this as a risk and may refuse you. However, there are still possibilities to stay insured or to take out new insurance.
When are you a defaulter for insurers?
A defaulter is someone who has previously failed to pay an insurance policy (on time). If you forget to pay your premium once, it's not an immediate problem. Does this happen more often? Or do you have large payment arrears? Then the insurer may see you as a defaulter and you will get a CIS registration that other insurers can also see.
A defaulter is someone who continues to use a service or product without paying for it. This can have unpleasant consequences such as difficulty obtaining new insurance or paying higher premiums.
Defaulters have a CIS registration
If you have insurance that has been discontinued, you will be registered as a defaulter in the CIS database. This database is managed by the CIS Foundation. This database contains all the information that is important to insurance companies.
So also when insurance has been cancelled due to non-payment. This data is visible to all member insurers and they can access the database at any time for information about customers.
Consequences of non-payment of insurance
If you forget to pay the premium, the insurer first sends a reminder. Don't pay within 30 days? Then coverage usually stops temporarily.
If you don't pay for 50 days, the insurance can be stopped and you are immediately no longer insured. You must still pay the outstanding payments after discontinuation.
Car insurance implications.
For example, are you not paying your car insurance? With car insurance, this means that you deregister your car with the RDW. Your car is then no longer insured and you can no longer drive it. Other insurers can see this suspension.
Forgetting to pay your premium once is no big deal
Most insurers often don't see a one-time missed premium payment as a major problem right away. Usually a warning will follow first and you will be given a chance to still pay the amount due. Insurers usually take into account any temporary financial setbacks.
Applying for insurance as a defaulter
Have you had any insurance that was terminated because premiums were not paid on time? You are required to declare this with every new insurance policy. In fact, insurers explicitly ask about this through the underwriting questions, such as: "Has any insurance been terminated due to premium arrears in the past 8 years?".
Getting insurance after default
Most insurers do not give options to (re)insure you if there has been a default in the past. This is because insurers do not want to run the risk that you will again fail to pay the premium in the future.
Insurers have no underwriting obligation and decide for themselves whether to accept or reject your application. The only exception is health insurance. Health insurers are required to accept your application for basic insurance.
Insurance for defaulters is always possible with the Vereende
Can't get insurance with a regular insurer? You can always take out insurance with De Vereende. This insurer accepts almost everyone. Even if you have a history of non-payment, a CIS registration or previous refusals.
Premiums are higher and additional conditions are imposed. For example, that you pay the insurance in advance. You can get at least basic insurance. Think of car insurance, liability insurance or household insurance. That way you can be sure you won't be uninsured.
See all insurances
Duration of a CIS registration of default
A CIS registration as a defaulter usually remains in the system for 3 to 5 years. Exactly how long depends on your situation and how serious the arrears are. For serious or more frequent arrears, the registration may stay longer. The insurer or lender determines this. The purpose is to alert other parties to potential risks.
Getting CIS registration removed
In some cases, you can ask to have your registration removed or object. This is especially possible if you think the registration is incorrect or has not gone well. For example, you can object to the insurer that passed on the registration. You must then be able to prove that you have cleared the backlog or that a mistake was made.
Sometimes you can ask the insurer to shorten the registration period. This is especially possible if the case is minor and you can show that the situation has now been resolved and you are no longer a risk.
Read the policy terms and conditions carefully
It is important to read the policy terms of an insurance policy carefully. But what does that really mean if you've had trouble paying before? For defaulters, some policy terms are extra important.
These rules are often not on the front page of an insurance policy, but they are in the clause sheet or general terms and conditions. Take some time for this, as it will prevent unpleasant surprises later.
Pay particular attention to the following points:
Exclusions
Check for situations where you are not entitled to compensation.
Notice periods
look carefully at how and when you can cancel to avoid additional costs.
Payment terms
Check if you can pay monthly and what happens if you miss a payment.
Increased deductible
This may be higher than normal if you have an increased risk profile.
Default obligations
Some policies are discontinued immediately in the event of late payment.
Do you find the terms difficult to understand?
Then contact us. We'll go over the policy together so you can be sure where you stand.
The difference between default and fraud
Default means that you have not paid the premium (temporarily). Fraud means you knowingly provided false information or made unjustified claims. For insurers, that difference is significant:
- If you default, you can often be reinsured as normal after recovery.
- Fraud usually follows a longer exclusion, CIS registration and possibly reporting.
So always be honest with your application and report payment problems on time.
Tips for those rejected as defaulters
Always ask the insurer why you were denied.
Try to pay off old debts or make payment arrangements.
Ask if annual payment is possible instead of monthly collection.
Work with a financial advisor or debt counselor.
Frequently asked questions about getting insurance for defaulters
Can you still be insured as a defaulter?
Yes, even as a defaulter, you can often still get insurance. Some insurers accept you under certain conditions, such as:
- Only payment per year in advance
- Increased deductible
- Coverage exclusions.
You can always purchase insurance through De Vereende. This is an insurer that insures people with a special risk. You pay more premium, but you are insured.
What insurances are hard to get as a defaulter?
Insurers assess each application for risk. As a defaulter, you may have difficulty closing:
- Car insurance: especially if you have been previously disbarred for non-payment.
- Contents insurance: for structural arrears.
- Liability insurance: with CIS registration often denied.
- Supplemental health insurance: basic insurance cannot be refused, supplemental insurance can.
Can I still get insurance if I have been a defaulter?
Yes, often they do. Some insurers accept you under conditions, such as prepayment or an increased deductible. If that does not work, you can turn to De Vereende.
Will I be automatically rejected if I haven't paid?
Not always. Most insurers look at how long the default lasted and whether it was a structural problem. Previous cancellations are more likely to be denied.
Can an insurer refuse me?
Yes, you may. Only for basic health insurance is there a legal obligation of acceptance. For other insurances, the insurer may refuse your application.
Can I put the insurance in my partner's name?
It can be done, but it is not without risk. If there is damage, you may not be insured yourself, and if it is discovered, the insurance may be discontinued. This is usually not a permanent solution.
What can I do if my registration is in error?
Get your details from the CIS Foundation and contact the insurer that registered you. If you can prove that the registration is unjustified, it can be amended or removed.
We can be reached via chat, WhatsApp, phone or email
Questions? Contact us if you want to know more.
We are here today until 6 p.m.