Insurance is a way to protect yourself, your business, and/or possessions from the risk of unforeseen events such as loss, theft, accidents, or damage. When a policyholder is unable to pay their premium, it impacts their insurance coverage negatively. In this blog post, we will discuss the consequences of defaulting on your insurance premium.
What happens when a policyholder defaults on their insurance premium depends on a lot of factors, including the insurance policy type, government regulations, terms, and policies of the insurance company, etc.
If you miss a payment for your insurance, your insurance company will send you a default notice asking you to catch up within a specific number of days, depending on the company’s terms. If you do not pay after the specified period, the insurer will cancel your coverage, leaving you uninsured and exposed to a potential mishap. To cancel insurance coverage, you may need to pay a cancellation fee.
Aside being exposed to risks, canceling certain insurance coverages such as a car or business insurance could mean breaking the law. If insurance is a requirement for your business, this would mean a breach of contract. Also, driving a car that is not insured is against the law and this could leave you at risk of being a criminal.
In all, it is obvious that there can be no good outcome from defaulting on premium payments. This is why Coronation Insurance brings an innovative idea that aims to help policyholders who cannot afford to pay for their insurance coverage. With Coronation Insurance Premium Financing, you do not have to lose your insurance coverage when you cannot afford the premium payment.
For more enquiries, contact 2341-2774500 or email contactcentre@coronationinsurance.com.ng
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