Can My Car Insurer in NSW Cancel My Policy

Many car owners in NSW review their vehicle insurance policies as the renewal period approaches and may consider switching insurers before their current policy expires, to avoid lapses in cover. Others might swap their newly bought vehicle insurance policies before the cooling-off period if they change their minds. Of course, anyone can switch their policies outside the cooling-off period if they find other insurers offering more or less the same benefits at reasonable costs.

Vehicle insurance premiums may not be the same every year, even with the best car insurance policy, whether it is in Australia or elsewhere. Car insurance in NSW can cost more year after year, which is one reason why it is important to carefully assess your living or driving circumstances, vehicle needs, etc., and make changes to your policy time and again to see if you can make savings. Updating your policy can be essential to keep your car insurance premiums relevant, i.e., pay for only what is needed.

While you can choose policy cancellation and switch to a different insurer at any time, your insurer may also have the privilege to cancel your policy under specific scenarios. In this article, we focus on some common questions around policy cancellation by car insurers.

Can my car insurer cancel my policy?

If you breach the terms and conditions you had signed up for at the time of policy purchase any time after the policy is active, your insurer can penalize you through policy cancellation. 

The various situations under which your policy can be called off may include – 

1. Providing false/incomplete information about your vehicle, ownership, drivers, car usage, where you park it, and car incidents. 
2. When you don’t pay your renewal premium or new monthly installment by the due date.

Also, you must know that if your insurer cancels your policy because of fraudulent activities, they may not refund your unused premiums.

I have financial difficulty; can I pay my premium at a later date?

Insurers can send out gentle reminders about the approaching policy renewal and the due date for paying premiums. At the same time, some insurers may push back the payment deadline for a brief period to accommodate their policyholders who may be unable to pay because of a temporary cash crunch.

However, talk to your insurer to know your best options when facing financial hurdles.

How likely will my policy be canceled if I provide my insurer with misinformation?

Your insurer will ask you vital questions at the time of policy purchase. And, you must know that your answers may determine whether or not they will insure your vehicle and, if insured, on what terms.

Every policyholder is legally bound to give their insurance provider complete, accurate, and honest information on the questions the insurer seeks answers for.

So, if there are violations, your insurer may cancel your policy outright and/or offer a reduced amount when a claim arises.

An insurer can deny compensation if they detect fraud and may consider the policy null and void.

What do I need to do when my policy is canceled?

You may receive written confirmation of policy cancellation through email or post. If you are keen on continuing to drive the vehicle whose policy has been terminated, you may have to look for other insurance providers to have your car covered.

Is there an opportunity to reinstate my canceled policy?

The decision will depend on the time elapsed and policy cancellation circumstances, among other factors. You can consider buying a new policy with a new insurer when your canceled vehicle insurance can’t be reinstated. However, first discuss the matter with your most recent insurer to ensure you follow the right steps.

Whether you have cheap or the best car insurance, you must provide your insurer with the correct information so you don’t have to struggle when making a claim. Also, pay your vehicle insurance premiums on time to avoid cancellation by your insurer. You can quickly pay your premium, cancel your policy, or switch insurers with car insurance NSW online services.