Never give a Easy Reason for an insurance carrier to drop you such as Non-Payment of Premium…Six Reasons Why?
- Risk has Increased: Your personal or business circumstances may have changed since you initially signed with this coverage and the risk has measurably increased. Your request to the underwriter to reinstate coverage but the underwriter reviews the account with too many claims and denies reinstatement. If the policy was paid, the underwriter may not have ever reviewed the account and coverage would continue.
2. Economy: When our economy is in a recession, a insurance carriers appetite for risk changes as well. What they may have accepted 3 years ago no longer applies in this current economic environment. For example, all over Illinois we have had many automobile burglaries. Many carriers are not writing automobiles in certain areas of Chicagoland. In order to avoid being cancelled, I find it to be very prudent for one to pay their premiums on a electronic funds transfer (EFT).
3. Mandatory in your State: Car insurance, Workers Compensation, Liquor liability, Professional liability or any other policy that is mandatory in the State of Illinois. This is a very important reason why keeping continuous coverage on your vehicle or business is so important. There are fees imposed upon you for not having continuous coverage.
4. Mandatory with your Vendors: In order to bid on a contract, you must show proof of coverage. If your coverage is cancelled due to non-payment of premium, the insurance carrier by law must notify all vendors and this could jeopardize your job situation and reputation.
5. Affects your Credit Score: Once your policy is cancelled for non-payment, your credit will be used again to be reinstated.
6. You May Pay a Claim Out of Pocket: If your policy is cancelled and not reinstated and a claim occurs, those cost will be paid by YOU and not the Insurance carrier