Why did my car insurance price go up when my policy renewed?
Canadian insurance companies are increasing the price of car insurance across the board this year. Here's why.
I think we can all agree that paying bills sucks. It’s the least fun part of being a responsible grown-up, or #adulting, as the kids like to call it these days.
The only thing that’s worse than paying bills? Missing a payment …or having a payment bounce. Yeesh. If this happens, you usually have to pay an NSF fee of $25 – $45 at the bank (NSF stands for “Non-Sufficient Funds”) and go through the extra hassle to get the bill paid. That is never a fun conversation! Plus, some insurance companies charge their own NSF fees on top of the ones your bank charges.
When it comes to your car insurance, a missed payment can mean a lot more than a fee or two and a little extra hassle: it can mean the cancellation of your policy. If your car insurance policy is cancelled for non-payment, you no longer have insurance and can no longer legally drive your car. You also will have a “Cancellation for Non-Payment” description added to your insurance record.
Many insurance companies won’t even offer you a policy if you have more than one Cancellation for Non-Payment on your record. Why? Well, there are two key reasons for this:
(1) they’re worried that you’ll miss insurance payments with them as well and that managing your account will be a hassle, and
(2) statistics show that people with a “Cancellation for Non-Payment” on their insurance record are more likely to be in an at-fault car accident in the future.
Basically, you’re viewed by insurance companies as a much higher risk when you have this dreaded label attached to your record. Many companies won’t offer you a policy at all, and those that actually will, offer you a policy with a higher premium. In addition, you may have to pay this entire – and often expensive – insurance premium upfront. Ouch!
If you’ve been cancelled for non-payment in the past, give the qualified team at Cheep Insurance a call. One of our brokers would be happy to shop your policy for you! We have the largest selection of insurance providers in Atlantic Canada, including several car insurance companies that specialize in “non-standard” insurance and offer policies for clients with cancellations for non-payment.
We understand that sometimes life happens and unforeseen circumstances can lead to missed or bounced payments. When speaking with one of our Cheep Insurance representatives, he or she may even be able to set you up on a monthly payment plan through an in-house financing company. We want to make sure you’re getting the best insurance rate available so you can build your insurance record back up. After a period of time, once your insurance record has been re-established, we can help you transfer your insurance policy back over to a standard insurance company so you can get a better rate.
Give us a call at 1-866-92-CHEEP or (902) 463-1675. Our team is ready to assist you in finding the best price available for your insurance needs.