Notify an Insurance Policyholder of a Pending Cancellation of the Policy • Example Letters, Guides and Samples

Write Your Letter Step-by-Step

1 Remind the customer that the premium payment is past due.

Sample Sentences for Step 1

• Last month when we spoke about your automobile insurance payment, you indicated that you would send a check immediately. The grace period has ended, and we still have not received your check.
• You may have forgotten that your policy was due for renewal two weeks ago.
• We remind you that you need to pay your second quarter's premium.
• Were you as busy last month as I was? If you were, you probably forgot that your payment for next quarter's insurance coverage was due two weeks ago.
• We have received a request from our home office in Springfield to contact you regarding your unpaid premium for $39.87.
• Perhaps your outstanding balance of $23.85 has slipped your mind because of this busy season.
• You are a valued customer, so we want you to understand the seriousness of letting an insurance policy lapse.

Sample Phrases for Step 1

• allowing your policy to expire
• are still waiting for your payment
• are still waiting for your check
• concerning your unpaid insurance premium of
• did not receive your premium for
• did not receive last month's premium
• due date has passed
• expect premium payments by
• expected your payment by
• grace period is past
• grace period has expired
• had indicated that you would send a check immediately
• have yet to receive your insurance premium
• have received a request from our home office
• have not paid your premium
• just a note to remind you that
• may have forgotten that
• no penalty if sent within the grace period
• our records indicate
• outstanding balance is
• premium payment is past due
• regarding your unpaid premium of
• regarding your delinquent account
• still within the grace period
• still have not received your check
• this letter is to remind you
• want you to be aware of
• want to let you know
• want to remind you

2 Restate the benefits of holding your company's insurance coverage.

Sample Sentences for Step 2

• To remind you of the benefits of your home insurance policy, we have enclosed some informative literature.
• We continue to offer a low premium with only a $200.00 deductible. Such low cost with such broad coverage is a remarkable bargain in today's insurance market.
• Before losing your coverage, please consider that the maternity benefit covers complications both during pregnancy and for three months after delivery.
• Your payment of $63.87 will keep your policy in force. We encourage you to renew the policy soon so you are not left unprotected.
• Unlike other policies, your policy covers not only accidents, but flooding and other natural disasters.

Sample Phrases for Step 2

• any other insurance company
• before letting your coverage expire
• before losing your coverage
• before you let your coverage be canceled
• can offer more discounts
• cannot get a lower quotation
• cost of our coverage is highly competitive
• continue to offer a low premium
• coverage for uninsured motorists
• encourage you to renew
• excellent track record
• for this low rate
• have enclosed some informative literature
• in today's insurance market
• have lowest premiums
• lowest deductibles in the industry
• most comprehensive coverage in the industry
• no other company offers
• offer the most comprehensive coverage
• payment will keep your policy in force
• the only company that offers

3 State when the coverage will end if payment is not received.

Sample Sentences for Step 3

• If we do not receive payment by May 5, we must cancel your automobile policy. The grace period has expired.
• We do not want to lose a valued client, but we cannot continue to offer you coverage if you do not send your payment before June 15.
• Unless we receive payment by July 31, your coverage will end at midnight on that date.
• Act now to avoid losing fire protection on your home. Your current policy will expire on August 31, if no payments are made.

Sample Phrases for Step 3

• a lapse in coverage will occur if
• act now to avoid
• can only help you keep your current policy
• can not continue to provide coverage if
• can not continue to cover you if
• can't find such premiums anywhere
• coverage will expire on
• coverage will end at midnight
• coverage will be terminated on
• coverage will be canceled if
• current policy will expire on
• if we do not receive payment by
• if you do not send your payment by
• if payment is not received
• if you do not act immediately
• low premiums will be lost
• must cancel you automobile policy
• to avoid losing fire protection on your home
• will be unprotected
• will have to discontinue insurance policy if
• will otherwise be unprotected against

4 Instruct the customer to send immediate payment.

Sample Sentences for Step 4

• Please mail your payment in the envelope provided.
• Place your check in the mail today to avoid cancellation of your policy.
• For continued peace of mind, we urge you to keep your policy current. We have enclosed an envelope for your convenience.
• Keeping your policy current is the best way to assure your family's financial future.
• If you can't send payment today, let us at least talk about your situation. We may be able to offer an alternative solution.

Sample Phrases for Step 4

• at your earliest convenience
• best way to assure their financial future
• continue protecting your investment
• could be damaging
• coverage will extend until
• don't allow a lapse in coverage
• drop it in the mail
• easier to renew your policy than
• encourage you to renew your policy
• for your own safety
• for continued coverage
• for continued peace of mind
• for continued protection
• have enclosed an envelope
• if you can't send payment today
• if you desire more comprehensive coverage
• if you need more information
• if you desire less expensive coverage
• if you have already sent this payment
• if we can be of further assistance
• if you send the payment today
• if you have any questions
• to avoid cancellation