Notify an Insurance Policyholder of a Pending Cancellation of the Policy • Letter Templates and Guides

How to write this letter:

1Remind the customer that the premium payment is past due.
2Restate the benefits of holding your company's insurance coverage.
3State when the coverage will end if payment is not received.
4Instruct the customer to send immediate payment.


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.

Example Letter #1


We have not received your July 1 premium payment. Please be aware that the grace period for your policy ends on August 25. You have been a valued customer of Doe Insurance for over five years and have benefited from low premiums and comprehensive coverage. Please remit today to avoid cancellation. We want to continue serving your insurance needs.

Example Letter #2


Please remember that your monthly insurance premium of $75.61 is past due. Because your hazard insurance is critical to you, your family, and your home, we urge you to remit payment immediately. Should your coverage lapse and a subsequent accident occur, you would have no coverage for losses or possible litigation. Unless our office receives your payment by May 5, your policy will lapse. Please do not jeopardize the financial security of your family by failing to pay your premium immediately.

Example Letter #3


Your July premium for your homeowner's policy is past due, and the grace period expires on May 5, at midnight. Your valuable protection ends at that time, leaving your home and personal items unprotected. Please remit your premium today, so you will continue to have this important protection.

Example Letter #4


We have not yet received the July premium payment on your auto insurance policy, and would like to remind you that the low premium you enjoy is partially dependent on your having uninterrupted coverage. If we have not received your payment by midnight on July 20, your policy will lapse, with all the inconvenience that that entails.

Please send your premium payment as soon as possible. If you have mailed it in the past week, please ignore this notice.

Write Your Letter Step-by-Step


Remind the customer that the premium payment is past due.

Example Sentences for Step 1

Example Phrases for Step 1