What To Do if Your Account Is In Arrears.

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Missing a payment can be extremely stressful, and we want to reassure you that we’re here to help you get back on track.

Main Points:

  • Insurance arrears are overdue premium payments for a policy.
  • Your account is classed as being ‘in arrears’ after one missed payment. 
  • Financial difficulties or illness are just some reasons why payments are missed.
  • It’s always best to contact us immediately if you’re struggling to pay on time. 
  • Solutions include making a payment plan or changing your direct debit date. 
  • Arrears may be written off due to exceptional circumstances.

Whatever the reason behind why you cannot pay your insurance on time, it’s important to always notify your insurer or reach out to us. 

With prompt, open communication, we can help you to find a way forward so it can be sorted eventually. 

What happens to my account if it is in arrears?

If you find yourself in a situation where you are unable to make a payment on time, it’s a good idea to contact us as soon as possible to discuss possible solutions. 

These can include options such as setting up a payment plan, changing your direct debit date or addressing any potential financial difficulties.

When one payment is missed, your account will be flagged as being in arrears. A letter is sent out to you as soon as it is missed. In this correspondence, we will break down any charges or interest requested by your insurer and the steps you can take to update your account. 

Our dedicated arrears team will then contact you to check in and make sure you understand the options available. Our aim is to make sure you can safely get back up to date with your regular payments and that the problem doesn’t become worse for you. 

If you do take no action to pay arrears, a warning letter will be sent out to ensure the legal consequences of not paying for your insurance are clear.

What happens if my payments are set up via a continuous payment authority?

 If you pay via a Continuous Payment Authority (CPA), we recommend that you contact us immediately if you miss a payment. 

With this payment method, the arrears will be paid from your account on the next payment date if it is not cancelled.

We understand that, for many, financial difficulties could be the reason for an account going into arrears. The sooner you reach out to us to notify the missed payment, the easier it will be for us to guide you through repayment options and to better support you.

What are insurance arrears?

Insurance arrears are unpaid or overdue premium payments for a policy. When taking out insurance, you can pay in a lump sum or monthly instalments. 

Although paying in a lump sum can be cheaper in the long term, many people opt to pay their premium via monthly instalments as it is easier to set aside smaller monthly increments. 

Arrears happen when policyholders fail to make these payments on time. It leads to a situation where they owe the insurance company for the missed premiums. 

If these arrears are not paid promptly, it can result in suspension or cancellation of your coverage. This can leave you without the protection and benefits that the insurance policy offers.

In some cases, such as car insurance or road risk cover, insurance is a legal necessity, so an invalid policy will mean you’re committing a legal offence if you continue driving.

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How do I know if my account is in arrears?

As soon as you miss an insurance premium payment, your account is classed as being ‘in arrears’ on our system. 

Our goal is to make sure you do not end up in arrears, and we pride ourselves on communicating swiftly should a payment be missed. If you have not paid your premium, we will notify you immediately via letter.

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Are there any circumstances where arrears can be written off?

There is a myriad of reasons why you may have fallen behind on your payments, and we understand that often, this is not purposely done. Sometimes, unforeseen circumstances can mean that payments are missed and unable to be paid. 

An arrears may be written off due to exceptional circumstances, such as terminal illness, health problems, and difficulties that may make someone extremely vulnerable.

Of course, the decision to write off an arrears is not taken lightly. The decision is made at the discretion of the insurer, and One Sure based on the evidence presented that verifies these exceptional circumstances.

How long does cancelled insurance stay on record?

Cancelled insurance typically stays on your record for around five years. This information is retained by insurers and may be shared with other insurance providers when you apply for new coverage.

Having a record of cancelled insurance could potentially affect your ability to get insurance in the future or may result in higher premium rates.

Failing to pay insurance and having a history of cancelled policies on record will make a potential policyholder appear extremely high risk to insurers. 

Not only will it affect how future insurers view your application for a new policy, but your credit score will be impacted. Having a lower credit score will make it even more difficult to take out loans, get a mortgage, and make financial commitments in future.

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I am struggling to pay for my insurance due to financial difficulties. Where can I get help?

There are many reasons why it’s possible to fall behind on keeping up with your monthly insurance payments. It can happen simply by accident when the due date slips your mind, or maybe you’re going through a difficult time. 

If you’re experiencing extreme financial hardship, there are many organisations dedicated to helping relieve the burden and offer advice. These include:

Citizens Advice Bureau

National Debt Line – 0808 808 4000  

Step Change  – 0800 138 1111

MoneyHelper (formerly Advice UK) – 0300 500 5000

Additionally, we’re here to offer as much support as you need. There will always be the opportunity to sort out a more suitable payment plan if you need time to get back on your feet. 

If you are concerned about missing an insurance payment, please contact us as soon as possible on 01782 900974  to talk about it with our customer care team.

About the Author

David Bartels

Operations Assistant

David is our Operations Assistant. He’s been at One Sure Insurance for seven years, beginning his career here working as a Customer Advisor. As part of our operations team, he helps ensure everything runs smoothly behind the scenes at One Sure Insurance. David is a fountain of knowledge regarding customer care, the insurance industry, and our operations.