Terminated For Non-Payment -How To Find Car Insurance

Has your car insurance contract been canceled  for non-payment? Can’t find a company to insure you? This situation can cause some difficulties. Some specialized insurers accept all profiles without distinction and offer insurance formulas adapted to these situations.

Termination for non-payment – Causes

The insurer may terminate an insurance contract if the insurance premium is not paid. All insurance is contractual, it requires the payment of an amount due to the insurer, in exchange for guarantees and services.

1.      Payment by direct debit

If you exceed your authorized overdraft, your banker can refuse a direct debit and therefore reject the direct debit from your car insurance contract, for example. In this case, you may be terminated from your insurance premium for non-payment.

Terminations for this reason are quite common. Insured persons do not always check that the direct debit is made each month, because it is automatic.

2.      Change of bank or account number

Termination for non-payment can also happen when there is a change of account or bank number. If the insurer has not registered your new bank details and is debiting your old account. Your dues are then unpaid. You may find yourself terminated for non-payment, even if you are not at fault and you had taken the necessary steps to inform him.

3.      Late or non-payment

You can also be terminated for a delay in the payment of your car insurance premium or for unpaid.

According to article L113-3 of the Insurance Code: “An insurance premium must be paid by the insured within 10 days of the due date”

You therefore have ten days after the expiry date of your contract to pay your insurance premium.

Once this period has passed, the insurance company sends you a reminder letter by registered mail reminding you of the amounts to be paid. You must pay them within 30 days or your contract is suspended.

The insurer can terminate your insurance ten days after this 30-day period if you have still not paid the insurance premium. In all cases, you will have to pay the remaining contribution due to the insurer.

 

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How to avoid a termination for non-payment?

Pay your insurance contributions annually, so you can be sure that your bank or your insurer does not make a debit error.

What to do in the event of a formal notice from your insurer?

First thing to do:  respond to the formal notice with a registered letter with acknowledgment of receipt explaining your situation.

Then attach a deposit if possible and agree to repay your debt on a close  and  specific date.  If your insurer trusts you, he will accept your proposal in writing.

If you are in dispute with your insurer, you must still pay your insurance premiums.

What are the consequences of canceling car insurance for non-payment?

  • You remain liable for reimbursement of the unpaid premium to your insurer.
  • Your insurer who terminates your car contract for non-payment sends your car information statement to AGIRA  (Association for the Management of Information on Risk in Insurance). You are on file for a maximum of 2 years. All insurers therefore have access to your information, they must consult it after each new subscription. As a result, canceled motorists may have some difficulty finding an insurance company accepting their situation.

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How to find a new car insurer

Every driver has the obligation to have car insurance to be able to drive.

Being in default of insurance, that is to say driving without a car registration document, is an offense that will require a fine of €3,750, a 3-year license suspension or the confiscation of your vehicle.

After the termination of your contract, it is therefore essential to find an insurer.

Insurers have specialized in insuring drivers terminated for non-payment.

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