Most insurance companies require that you pay your insurance premium in the form of a monthly debit order. Your insurance premium debit order is not for a fixed amount because premiums do increase very year – but your insurance company is obliged to inform you of any increases.

When you first take out an insurance policy you can choose to be covered effective immediately or at some future date. If you choose immediate cover and it is not the end of the month yet, your insurance company will deduct a pro-rata insurance premium from your bank account. In some cases you may also be charged a commencement fee. If you start your cover from the beginning of the month you will pay the full month’s premium.

What happens if I don’t pay my insurance premium?

If for some reason your insurance premium is not paid, you will not be covered for that month. Your insurance policy will then become inactive (or lapse) and you will need to reinstate your policy.

Generally the insurance policy will be regarded as cancelled if you have not paid your premium for two consecutive months.