The 3 top reasons why your insurance policy is cancelled (& tips on how to avoid this)
Cancelling an insurance policy is something we take seriously, but sometimes it has to happen - find out why and how to stop this from ever happening to you
You might know this already if you have read any of our blog posts in the past, but the thing is - honesty really is our best policy.
We also love to keep it simple, straight to the point and straight up when it comes to insurance.
Which is why we have put together this piece on why we would ever have to cancel an insurance policy and the best part is we also give you the tips on how to stop this from happening.
Tell me a little more about insurance policies
When we cancel an insurance policy, it might seem unfair, unjust and just plain rude. But the thing is, an insurance policy is a contract between us (the insurer) and you (the insured).
This means it is a legally binding document, which is why we take it so seriously - From house insurance to car insurance (we also do pet insurance and health insurance), it is all the same in terms of it being legally binding.
This contract is put in place and designed to make sure you are covered against certain risks and in exchange for this insurance, you pay us a premium every month. We then rely on your honesty to help us create your risk profile by answering a series of questions.
Whether it is where you live or the car you drive and your claims history, it all determines your risk.
We then do our best to assess what your risk is and then base your premium on this, if your risk profile changes in any way or you breach the terms of the contract, then we have the option to cancel the policy, and so do you!
Most insurance policies will allow for a 30-day notice period for the cancellation to take place, this gives both parties a chance and some time to find a solution. But, if there has been any fraud or dishonesty, then we can cancel the contract without notice.
What would cause my insurance policy to be cancelled?
1. Being Dishonest
If we find out that you have lied to us about something important on your policy (we normally find this out when it comes time to claim) or you have made some fraudulent claims - meaning you are claiming solely for the money given to you and have caused an incident to take place in order for you to do so, then we can cancel your policy.
For example, if you tell us you have burglar bars when in actual fact you do not and as a result suffer the consequences of a break in (in cases like these we might reject your claim and negotiate your policy from there), or you have a history of car accidents in the past - no matter what your grounds of dishonesty are, we have the right to cancel your contract if you are not truthful.
2. Not paying your premiums
This one might seem pretty obvious, but when you don’t pay, we don’t cover you for accidents and events.
BUT! We do have a grace period for each of our insurance plans, this is the period of time we give you to pay us your premium before we cancel your contract, during this time your contract is suspended until you pay your premium.
3. Changing your risk profile based on changes in your behaviour
If you are one of those people who think that you can act like a foolish hooligan now that you are insured, think again.
Reckless behaviour, when it comes to driving or looking after your home, is something that directly results in more claims than we anticipated based on the carefully created risk profile we made for you.
Simply put - your policy will no longer be seen as a ‘good business opportunity’ for us (don’t forget, we also have bills to pay and mouths to feed). If this is the case, we will assess the situation and possibly decide to cancel the policy. But we are likely to first modify your risk profile accordingly before we cancel.
If you ever feel as though you have been treated badly by our team and your policy was cancelled for a reason you do not understand, phone us and chat to one of our agents, we want you to be happily insured with us and will do whatever we can to get that.
Yours in simple insurance,