Tutorial for “Notify an Insurance Policyholder of a Pending Cancellation of the Policy”

Tips

This collection letter is different from most collection letters because the most serious threat you can make is to discontinue your service. Rather than focusing only on a request for payment, you must make the cancellation of the policy sound undesirable. In that sense the letter takes on a persuasive tone.

Steps

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

Sentences

  • 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.

Phrases

  • 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.

Sentences

  • 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.

Phrases

  • 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.

Sentences

  • 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.

Phrases

  • 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.

Sentences

  • 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.

Phrases

  • 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

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