As the term suggests, car insurance cancellation refers to the termination of an insurance policy by the car insurance company or the policyholder at any given time before the termination of the policy period.
While the policyholder possesses all the rights to cancel their car insurance policy at any given time before the policy period ends, the insurance company commonly cancels the policy under 3 common adversities:
1. Concealment of information
2. Misrepresentation of facts
3. Failed premium payments
The insurer will share a notice with the policyholder before canceling the car insurance policy by stating the appropriate reasons.
As discussed above, the insurance company holds all the right to cancel a car insurance policy in 3 common cases where you have been deemed to be at fault. However, there are still several other circumstances that might lead to your insurance company turning their heads away including:
In case a car insurance policy is to be canceled by the insurance company, it might get tough to obtain a new insurance policy from either the same or any other insurance company as the new companies may consider you as a riskier option.
There is very little that you can do in case your policy is being canceled in case you concealed crucial facts, staged an accident, or even misrepresented any important information.
However, if you have received a policy cancellation notice because you failed to pay the premium for your insurance on time, you might have a chance to gain back your policy by paying the entire year’s premium amount in one go. If that is an option you can’t go with at that moment, then you would have to try with a new insurance company.
Car insurance non-renewal refers to a refusal to renew the existing car insurance policy that has lapsed, either by the policyholder or the insurance company. The policyholder has all the right to not renew the policy without being legally obligated to furnish appropriate reasons.
However, if the insurance company intends to not renew car insurance policy, they will be required to give notice before the expiry date of the policy and also state the reasons for not renewing the car insurance policy anymore.
There are several reasons that your insurance company can state while choosing to not renew your car insurance policy. Some instances may not even be related to you. For instance, the insurance company might drop the policy count to be distributed in your particular location in the next policy period or even decide to not supply any more car insurance services in your location. Other instances include:
Following are the points of difference between car insurance non-renewal and car insurance cancellation
Car Insurance Non-Renewal
Car Insurance Cancellation
Post the expiry period of the existing motor insurance
Can only be canceled by the insurer till 60 days from the date of the policy being in force
Penalty on premium
Does not affect the premium amount charged by the next insurer
The next insurance company might levy a higher premium amount as a penalty against the cancellation of your policy
Existing insurance company
You might be still eligible to purchase car insurance from the existing insurance company
The existing insurance company may refuse to provide a car insurance policy again
While it is clear that getting your car insurance canceled by the insurer is a comparatively serious issue than having it refused to be renewed again. Cancellation of existing motor insurance calls for penalizing behavior from future insurance companies. So make sure that you thoroughly compare car insurance from various insurance companies before proceeding to purchase one.
This will not only help you fetch the best rates for car insurance renewal but also help you choose the best and most appropriate insurance services for you. If you are looking forward to a hassle-free renewal process, you can visit the official website of Policybazaar Insurance Brokers Pvt. Ltd. For convenient car insurance renewal online.
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#Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc
*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.