Cancellation/amendment letters

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.

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
1

Remind the customer that the premium payment is past due.

Example 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.
Example Phrases for Step 1

allowing your policy to expireare still waiting for your paymentare still waiting for your
checkconcerning your unpaid insurance premium ofdid not receive your premium fordid
not receive last month's premiumdue date has passedexpect premium payments
byexpected your payment bygrace period is pastgrace period has expiredhad indicated
that you would send a check immediatelyhave yet to receive your insurance
premiumhave received a request from our home officehave not paid your premiumjust a
note to remind you thatmay have forgotten thatno penalty if sent within the grace
periodour records indicateoutstanding balance ispremium payment is past
dueregarding your unpaid premium ofregarding your delinquent accountstill within the
grace periodstill have not received your checkthis letter is to remind youwant you to be
aware ofwant to let you knowwant to remind you
2

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

Example 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.
Example Phrases for Step 2

any other insurance companybefore letting your coverage expirebefore losing your
coveragebefore you let your coverage be canceledcan offer more discountscannot get a
lower quotationcost of our coverage is highly competitivecontinue to offer a low
premiumcoverage for uninsured motoristsencourage you to renewexcellent track
recordfor this low ratehave enclosed some informative literaturein today's insurance
markethave lowest premiumslowest deductibles in the industrymost comprehensive
coverage in the industryno other company offersoffer the most comprehensive
coveragepayment will keep your policy in forcethe only company that offers
3

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

Example 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.
Example Phrases for Step 3

a lapse in coverage will occur ifact now to avoidcan only help you keep your current
policycan not continue to provide coverage ifcan not continue to cover you ifcan't find
such premiums anywherecoverage will expire oncoverage will end at midnightcoverage
will be terminated oncoverage will be canceled ifcurrent policy will expire onif we do not
receive payment byif you do not send your payment byif payment is not receivedif you
do not act immediatelylow premiums will be lostmust cancel you automobile policyto
avoid losing fire protection on your homewill be unprotectedwill have to discontinue
insurance policy ifwill otherwise be unprotected against
4

Instruct the customer to send immediate payment.

Example 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.
Example Phrases for Step 4

at your earliest conveniencebest way to assure their financial futurecontinue protecting

your investmentcould be damagingcoverage will extend untildon't allow a lapse in
coveragedrop it in the maileasier to renew your policy thanencourage you to renew your
policyfor your own safetyfor continued coveragefor continued peace of mindfor
continued protectionhave enclosed an envelopeif you can't send payment todayif you
desire more comprehensive coverageif you need more informationif you desire less
expensive coverageif you have already sent this paymentif we can be of further
assistanceif you send the payment todayif you have any questions to avoid cancellation