Getting cancelled for non-payment is a huge mistake.

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In the past 5 years, have you ever been cancelled, declined, or refused coverage?"

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Clients that have been cancelled for non payment may find themselves PAYING A LOT MORE for coverage at renewal. 

Here's a few reasons to make insurance payments a priority. ​

Avoid getting picked last for kickball.

Insurance companies choose pricing on policies to bring them customers they WANT to insure.

​Paying your bill, and being financially reasonable is a big step towards keeping you on the WANTED list.

Pricing can be complicated and insurers tweak their offerings all the time to attract MORE of the risks they want, and LESS of the risks they don't want. 

STAY ON THE WANTED LIST!

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More Money.

Without question, if you've been cancelled for non-payment during a policy term, your costs are going up at renewal.


Some companies surcharge as much as 25% more than last year for one of these slip-ups.  

Fortunately Auto Insurance is regulated by the province, and if you pay the missing amount before your cancellation date there's a requirement to reinstate your coverage.

Once renewal rolls around though, that's when you'll see the additional costs.  

Property on the other hand has NO REGULATION which means insurance companies  don't HAVE to do anything... and the market is trending towards insurers NOT REINSTATING HOME POLICIES that have been cancelled for non-payment.

This leads to shopping for coverage elsewhere right away, and your options are often less attractive.

When it Rains, it Pours.

If you're able to get your insurer to reinstate your HOME policy, there's a good chance they may not offer monthly payment anymore. 

PAYMENT IN FULL?!

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Sadly yes. 

If you decide to go elsewhere "since this is ridiculous" you're likely to have an even higher premium elsewhere since you've been removed from the WANTED list. 

Understand What You Signed Up For.

An insurance policy is a 12 month agreement.

​Tons of people end up getting cancelled for non-payment simply because they didn't know it was a big deal, or they didn't think it affected them.

I knew a guy who put a 'stop pay' on his payments after he sold his car since he didn't need it anymore.

I'm not kidding. 

Rather than calling and cancelling it like most people, he just pushed his future self off an insurance rating cliff.  

I guess my takeaway here is:

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If you’re living paycheck to paycheck and you sometimes have to ask: "WHICH BILL IS GETTING PAID THIS MONTH?"

You can save FUTURE YOU some money by putting your insurance bill near the top of the pile. ​

- MD​