Canceling an insurance policy
When your insurance is cancelled, it means it has been discontinued. Insurance can be cancelled by yourself (voluntarily) or by your insurer (involuntarily). There can be several reasons for this. Consider non-payment or fraud.
What does expelling insurance mean?
The word royalty is derived from the word expel. To cancel means to stop or terminate something. In insurance, it means to discontinue an insurance policy. Any insurance can be stopped, from household insurance to car and motorcycle insurance
There are 2 forms of cancellation: either you or the insurer can terminate insurance.
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Cancel your own insurance
If you want to switch to another insurer at the end of your insurance, you can stop or terminate the insurance yourself. When your car is sold, suspended, stolen or totaled, you can also terminate a policy.
You used to get a cancellation notice with the number of accrued claim-free years after you stopped your insurance. Now these years are kept digitally in Roy Data. So you no longer need the statement to apply for new insurance.
When may my insurance be cancelled by the insurer?
In some cases, an insurance company may stop an insurance policy. They may do this if there is non-payment, fraud or too many claims. This is always stated in your insurance policy's terms and conditions. There are several forms of cancellation:
Royalties for non-payment
If you miss a payment for your insurance, the insurer first sends a reminder. Do you pay this reminder on time? Then there is no problem. But if you don't pay within 30 days, the insurer can stop the insurance. Then you will (temporarily) no longer have your insurance coverage.
Have you not paid after 50 days? Then the insurer can terminate your insurance. The insurance will then be stopped and you will be considered a defaulter.
Cancellation due to fraud or too many claims
An insurer may also stop insurance in cases of insurance fraud. Many people think insurance fraud is only about major mistakes. But it also includes knowingly giving false information when applying for insurance.
For example, if you try to hide a past criminal record or bad driving record such as uninsured driving. Also, if you declare an incorrect number of claim-free years, it can be seen as fraud. If too many claims are made in a short period of time, your insurer may decide to stop the insurance.
Rejected insurance can provide CIS registration
When insurance was cancelled due to fraud, non-payment or exceptionally high claims, you risk CIS registration. CIS is the abbreviation for Central Information System. The CIS Foundation is an organization that represents the interests of insurers. All insurance data that may be important to insurers are kept here.
This registration then remains for 8 years and affects eligibility for new insurance. After an expulsion by the insurer, you may no longer be eligible for insurance with a standard insurance company.
The only option then is insurance through the Vereende. They specialize in special risk insurance and have a broader underwriting policy than most insurance companies.
The cost of insurance after an expulsion
When you purchase insurance from De Vereende, you often pay additional fees. The greater the risk according to the insurer, the higher your monthly premium. De Vereende also requires you to pay 3 months of premium in advance before they approve the insurance.
In addition, you usually pay a deposit that is withheld if you don't pay the premium on time. Do you always pay on time? Then you get the deposit back at the end of the insurance year.
Car insurance after cancellation
If you have been disenrolled, it is possible to get car insurance through the Vereende. You will always be accepted. The disadvantage is that the premium is often higher than with a regular car insurance company.
Frequently asked questions about insurance cancellation
What are the reasons for canceling auto insurance?
A car insurance policy can be cancelled because of voluntary cancellation, for example, sale of the car. Or because of involuntary cancellation by the insurer itself. For example, after non-payment, fraud, excessive claims history or if you no longer meet the policy conditions.
What is the difference between voluntary and forced expulsion?
With voluntary cancellation, you cancel the insurance yourself, for example when you sell the car or switch to another insurer. With forced cancellation, the insurer terminates the policy, usually because of non-payment, fraud or too many claims.
Can I buy new insurance after a forced disbarment?
Yes, but it can be trickier. You are often seen as a high-risk customer and regular insurers may refuse you. In that case, you can turn to De Vereende. The downside is that De Vereende's premiums are a lot higher.
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