Nobody wants to get into an auto accident. If you sustain non-fatal injuries, your vehicle will be significantly affected. The tragedy is even more significant when your auto insurance has been cancelled. You will have to pay from your pocket to remedy the situation. While in Canada, auto insurance claims in 2019 were about $18 billion, which is about 40% of the insurance market share.
The background information gives us insight into the impact of vehicle crashes and auto insurance on the economy.
Auto insurances are cancelled many times in Canada; sometimes, clients want to change their insurance provider or switch to a new plan. Other times, the provider may cancel the auto-insurance when there’s non-payment from the client. This article focuses on the importance of auto insurance and what you should do when your auto insurance is cancelled for non-payment.
Was your auto insurance cancelled for non-payment in Canada?
If so, visit https://www.surex.com/Insurance/auto-car/ottawa to find quality auto insurance quotes in Ottawa and the surrounding areas in Ontario.
Table of Contents
Importance of an Auto Insurance
Auto insurance refers to the type of insurance that protects you from financial loss in case of an accident or theft of your vehicle. Your insurance company covers your property and bodily damage under auto insurance. The auto insurance package can also protect all the members of your household and uninsured individuals who received permission to drive the vehicle.
Some of the importance of auto insurance include;
It is always required by law
According to the Compulsory Automobile Insurance Act, no person shall operate a motor vehicle on the highway without automobile insurance. There are huge fines to be paid for driving without auto insurance.
It protects you and your passengers
The primary importance of auto insurance is to protect you and your passengers from financial losses when there is an accident or theft of their vehicle. According to the Insurance Information Institute, auto insurance requirements include bodily injury liability, property damage liability, medical payments, and sometimes, an uninsured motorist. However, the coverage for uninsured motorists is optional, and it can also cover hit-and-run victims.
There is also the part of the third-party liability, which is the requirement for passengers involved in the crash. If you get involved in a car crash and end up hurting other people, your auto insurance caters to the individuals’ medical payments.
Auto Insurance Can Also Supplement Your Health Insurance
Another importance of auto insurance is that you can use it to supplement your health insurance. It is possible when your health issues suffice from incidents involving your car. For example, your auto insurance covers such liability when there’s a bodily injury resulting from a car accident.
Auto insurance provides you with a resource you can always fall back on when dealing with car-related problems. It gives you peace of mind and protection for your asset.
An insurance company gives you almost every form of coverage as part of your auto insurance.
The options available include accident forgiveness, car rental coverage, collision coverage, comprehensive coverage, depreciation coverage, windshield coverage and even third-party liability coverage.
As important as auto insurance is, your insurer may have to cancel your policy. Some of the popular reasons for the cancellation include being late on payments, increased rates, and when your credit score cannot sustain the policy. What do you do when there is a cancellation of your auto insurance?
Car insurance Cancelled for Non Payment — What Should You Do?
Was your car insurance cancelled for non-payment in Ontario? Follow these steps:
Contact your Insurance Development about the development
When your insurance is cancelled, the first thing to do is call your insurer for more information. For some insurance companies, you may have to start a new policy. Some other insurance firms require you to renew your existing plan at an increased rate. Some other firms go the extra length of blacklisting you such that you cannot purchase a new policy from them.
If you are in Ottawa and your auto insurance got cancelled, you can start a new plan with Surex, as they offer some of the best insurance packages in all of Canada.
Look for a Cheaper Insurance Policy
If your provider cancelled your insurance policy for non-payment, you should probably look for a cheaper policy. Looking for more affordable insurance may involve changing your insurer, as all the insurance companies offer different quotes. It may also include comparing the options available to you. For example, Surex offers insurance quotes based on the options you choose in your policy. Some of the coverages available under auto insurance are optional.
Some other factors that affect your premium in Ottawa include the make and model of your car, your driving history, your area of residence, vehicle use and government regulations. If you are interested in a cheaper insurance policy, you may have to control some factors responsible for higher insurance premiums.
If you know you will not be able to meet the terms and conditions for the payment, you should inform your insurance company beforehand. By telling them, you can negotiate an offer that allows you to keep the insurance policy even after the grace period. The request may often come with a fee for late payment. Also, you can negotiate with the insurance provider to offer you a more flexible payment option. Some insurance companies offer their clients unique payment frequencies based on past agreements; some also offer online banking options for payments.
If you no longer want the policy and want to cancel it, inform your insurance provider. People make the mistake of simply not paying to cancel their insurance policy. It may affect your credit score, and when you want to start a new policy at another insurance company, they will check your credit score to determine your eligibility for affordable plans.
As a resident of Ottawa, you must have at least third-party liability insurance. If your insurance policy has been cancelled, you can consider any insurance provider that provides you with the best options on your policy.