Reinstatements

Reinstating your policy with OCHO works a little differently than with traditional insurance. This is because OCHO loans you money to pay for your insurance.

With a traditional insurer, you pay before you use the insurance. That way, if your policy is canceled due to a missed payment, you just need to pay for the next month to reinstate it (as well as any applicable fees).

OCHO works the opposite way. You use your insurance first, and then pay for it in installments after; drive now, pay over time. So if your policy gets canceled, you may still owe money to OCHO for insurance you already used but haven’t paid for yet.

To reinstate your policy with OCHO, you’ll need to repay us for the days of insurance you’ve already used, since we paid for that coverage on your behalf, plus any applicable fees.

In some cases, the amount due might be more than your usual installment amount.

Here's a breakdown of what a reinstatement with OCHO might include:

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When you signed up, OCHO loaned you money to help pay for your insurance. We paid the insurance company directly on your behalf (instead of you paying the insurer). 

So if you cancel before the end of your policy, you might still owe OCHO something back. That usually includes the insurance you already used, any fees from your plan, and then we subtract what you’ve already paid. What’s left is your balance.

We're not charging you twice, we’re just settling up the part of the loan that covered your used insurance, which you owe back to OCHO.

Example:

When you make changes to your policy, the insurance company will reassess your premiums. OCHO takes no part in the pricing process. The insurance provider makes this decision, based on the new information. 

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If the cost goes up, your payment plan or loan agreement with OCHO needs to be updated too.

Let’s look at some examples: 

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• If you have a multi-driver or multi-vehicle discount on your policy and you remove a driver or vehicle, your premium could increase because you lose that original discount. Or, if you add a driver with a bad driving record this will also increase your premium. 

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• Each vehicle has a different insurance rate. More expensive or modified cars cost more to insure because they’re more expensive to repair or replace. Vehicles that are more likely to be involved in accidents or stolen also come with higher insurance rates. Your premium includes the specific risk profile of the car you drive.

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• Changing your address can also increase your premiums. Insurance companies use ZIP codes as part of their pricing models. For example, we had a customer in Chicago whose premiums increased by hundreds of dollars simply by moving a few blocks away into a different ZIP code.

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• ​​If you make a change near the end of your policy term, there isn’t enough time to spread the premium increase across multiple installments. 

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This means you’ll need to pay the remaining balance on your policy plus any premium increase in one lump sum. 

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A customer recently wanted to replace their vehicle with a Tesla, but they had only 19 days left on their policy. The insurance company reassessed the coverage and decided to increase their premium by $380. With so little time left on the policy, we couldn’t break this increase into manageable chunks. The customer had to pay $439.50 for their final installment (the increase plus their usual payment amount). 

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Reinstatements usually take 2–5 business days. This is the insurance company’s timeline — not OCHO’s — so while we help move things along, the decision and processing speed come from the insurance provider.

Only the insurance provider decides whether or not to reinstate a policy. OCHO has no say in this decision — we’re your broker, not the insurer.

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 If your reinstatement is denied:

• We’ll help you set up a new policy so you can stay insured.
  
  
• Any reinstatement fees you paid will be refunded.
  
  

However, the amount for used insurance days is not refundable, as that coverage was already provided.

No, once approved, your policy is backdated to the date you completed all reinstatement steps:

• Paid the amount due
  
  
• Answered any required questions
  
  
• Signed the documents
  
  

That means you’re covered starting from that date, even if processing takes a few days. For example, if you requested a reinstatement on June 1 but the insurance provider doesn't approve it until June 4, your policy will be effective starting June 1. That means you're covered during the waiting period, even while the provider was still reviewing your request.

In most cases, a new payment schedule is created after your policy is reinstated.

OCHO does its best to keep your schedule aligned with your original plan (usually based on your paycheck dates). But if you reinstate your policy very close to your next scheduled payment, we adjust things to avoid charging you twice back-to-back.

Example:
If you reinstate your policy today and a payment was originally due tomorrow, we’ll remove tomorrow’s payment and spread that amount across your remaining installments. This might make your future payments slightly higher, but the total amount you pay stays the same.

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 If reinstatement isn’t possible:

Start a brand-new application with a fresh quote, and we’ll roll your prior unpaid balance that you owe OCHO (which covered days of insurance you used, but OCHO paid for on your last policy) to your new policy.

If your lienholder (financial lender for your car) needs confirmation that you’re in the process of reinstating, just have them contact us directly. We’re happy to verify your status and explain the situation on your behalf.

Yes. Most insurance providers give you a window of 10 to 60 days to reinstate, 30 days is the most common. If OCHO shows you the option to reinstate, it means you’re still eligible, but not for long. Act quickly to avoid having to reapply, which may lead to higher rates.

Some carriers offer a no-lapse reinstatement, which lets you pay to cover the days you missed since your cancellation. This helps you avoid a gap in your insurance history, which can help you get lower prices in the future.

Because you’re paying for more days of used coverage, this option might cost more upfront. Not all providers offer it, so contact us if you want to check whether it’s available to you.

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