Top 4 Reasons why car insurance policies are cancelled

I have been in the non life inssurance industry since 2001 and through the years, I have come across on some of the common reasons why a car insurance policy is cancelled.

Here are a few valid reasons:

1. Non-Payment of Premiums.

This goes without saying. No payment, no coverage.

Many times, insurance providers are accommodating. They will issue the policies and payment to follow. But for some reasons only the insured would know, the insured was not able to pay until the coverage period ends.

If the Insured wishes to renew the insurance policy, the insured may have to pay the previous unpaid insurance premium plus the renewal premium for the insurance policy to be valid.

2. Change Type of Risk

This is a common occurrence.

The insured will get insurance for his/her car as a privately owned vehicle only to use it for commercial purposes such as a taxi or Grab unit.

The terms and conditions are clear, however, that the coverage will be rendered to the vehicle as a privately owned unit.

Since the insured the policy contract, not only is the policy cancelled but the premium paid is also forfeited by the insurance company.

3. Fraud

Believe it or not, there are some unscrupulous individuals who will get a car insurance policy with the sole purpose of filing fraudulent claims. Why? They thought that by filing a believable claim, for example, car theft, they could profit from it for paying the car insurance premium, which is a fraction of the car’s market value.

When proven that the claim is fraudulent, this will not only lead to policy cancellation but also, premium will be forfeited and possibly, filing of a legal case against the fraudster.

4. Misrepresentation

Providing false information about the car, i.e., incorrect details or status of the car, including but not limited to the sale of the said vehicle, may cause the insurance provider to cancel the policy and forfeit the premium.

Remember, when getting a car insurance policy, seek advice from a reliable Financial Advisor about your car insurance policy.

There are many people who don’t want to go through Financial Advisors but the truth is, they should be the go-to-guy esp. in times of claims.

In the Philippines, when you try to go direct to an Insurance Company for your insurance company, your life can be more convenient when you can count on a reliable and experienced Financial Advisor to guide you through the claims process.

Ronnie Reyes has been a Non-Life Financial Advisor since 2001. For your non-life insurance requirements (home, motor, travel insurance), you may reach out to him for a free quote at the following contact details:

Mobile: 0917 796 2530

Email: reyes.ronnie@gmail.com

or send him a DM here at WordPress or at LinkedIn @iamronniereyes.