Auto insurance terminated for non-payment, what to do?

Auto insurance terminated for non-payment, what to do?

Has your auto insurance been terminated for non-payment? Have you tried unsuccessfully to take out new insurance plans? Are they all just saying they can't insure you or are they offering you sickening rates?

You are at the end of the line, desperate and you no longer know which way to turn. No need to throw in the towel, there are alternative solutions to the problems with auto insurance terminated for non-payment. Read this to find out more.



Why was my auto insurance contract terminated?
As much as it is possible for you to terminate your insurance contract, this is also for your insurer. The latter of course, will not make such a decision on a whim.

Insurers terminate insurance contracts when the insurance premium is not paid to them. Insurance is first and foremost a contract.

The insurer has an obligation to provide you with guarantee benefits and you have to pay insurance premiums periodically. A default can have several causes.

Payment by direct debit
Insurance contracts are mostly direct debit. If you happen to exceed your authorized overdraft limit, your bank will oppose any direct debit request. And that includes your auto insurance contract. This is the most common cause of auto insurance contract termination.

A change of account or bank number
Normally, you must send your new RIB to your insurer when the debit account changes.

If you don't, your insurer will try to take the premiums from your old account. Failure to debit will inevitably lead to termination of the contract.

Likewise, it may happen that you are terminated even though you have sent your new RIB to your insurer. This happens most of the time when your insurer fails to register this new RIB. Important to better manage your auto insurance terminated for non-payment.

Termination for delay or non-payment
Article L113-3 of the Insurance Code provides that insurance premiums must be paid by the insured within a maximum period of 10 days after the due date.

If this period expires without you having paid your premiums, you will receive a reminder letter by registered mail. Then begins a period of 30 days after which your contract will be suspended.

Final termination of the contract will then be possible 10 days after the expiration of this period.

Auto insurance terminated for non-payment

Consequences of auto insurance terminated for non-payment
It should be noted that this termination does not exempt you from paying the remaining commission due to your insurer.

In addition, after canceling the auto insurance, your insurer will send your auto information statement to the Association for the Management of Insurance Risk Information (AGIRA).
You are then in the computer file of this association for a maximum period of two years. During this period, all other insurers have access to your information. This is what justifies their refusal to offer you another insurance contract (in the context of a file rental).

auto insurance terminated for non-payment

What to do to avoid auto insurance terminated for nonpayment?
The ideal would already be to pay your insurance contributions annually. This saves you any unpleasant surprises. Also note your right of withdrawal from auto insurance thanks to the Hamon law.

In the event that you have already received the formal notice, the first thing to do is to respond to it. Send a letter of recommendation with acknowledgment of receipt in which you describe your situation. If possible, accompany the letter with a deposit and a repayment schedule. So you start to learn more about auto insurance canceled for nonpayment.

Your insurer may accept your proposal in writing. But he has just as much the right to refuse it.

What if my auto insurance has already been canceled for non-payment?
When you find yourself in such a situation, you have two options. Subscribe to a temporary auto insurance offer or use an insurer specializing in risk profiles.

Term auto insurance contracts cover terms ranging from one day to ninety days.

As much as they take effect systematically upon signature of the contract, they also end on their expiry date. You do not need to initiate a termination request yourself.
And if, at the end of the contract, you liked to renew it, all you have to do is request it.

If this solution does not meet your expectations,