Notify an Insurance Policyholder of a Pending Cancellation of the Policy — Letter-Writing Tutorial


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.


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


  • 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.


  • 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.


  • 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.


  • 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.


  • 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.


  • 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.


  • 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.


  • 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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