3 Things That Can Happen if Your Auto Insurance Payment Is Not Made on Time
If you are like the majority of consumers, you will pay monthly payments for your auto insurance coverage instead of paying for the term of your policy in full. Even though this makes it convenient to pay for coverage, it does also mean there will be more of an opportunity for late or missed insurance premium payments. It is definitely important that you try to make these payments on time, but if you do not, it is also important that you understand there can be consequences. Take a look at some of the things that can happen if your auto insurance payment is not made on the scheduled due date.
You may not be covered if you have an accident.
If you miss a payment, your auto insurance policy can be at risk of getting canceled. Unfortunately, this can mean that if you have an accident, your insurance will no longer be in effect, so the damages caused or sustained will no longer be covered. Most insurance companies will let you know before they cancel your policy due to non-payment. If you know that you are not going to be able to make a payment on time, reach out to your insurer to let them know. They may be able to work out something with you so you are not left uninsured.
Your insurance rates may go up.
One thing that a lot of insurance customers do not realize is that if they do not keep consistent coverage and pay their payments in a timely manner, they can be at risk of seeing higher insurance rates down the road. If you are consistently late making payments or if you don't make payments and your policy is consequentially canceled, you may see higher rates when you reapply, especially if you reapply for a policy at the same company. If there are large gaps in your coverage due to non-payment, it can affect the pricing of a new policy as well.
You may have to pay late fees in addition to your policy payment.
Some insurance companies will charge a late fee if you make a payment on your policy after the due date. The fees are in place to deter people from making late payments, of course, but they are also in place because late payments can take more time to handle than regularly scheduled payments made in a timely way. Even though late fees can be a bit of a bother, they are in place for good reason.
To be better understand auto insurance, contact services such as Germain Insurance Agency.