What happens if you miss a car insurance payment?
If you where to miss an car insurance payment, it could in fact have consequences, it all depends on how long the payment is overdue, and of course your policy. If you ever find yourself in this situation, heres is some tips.
Grace period
Insurance companies offers a short grace period when your payment goes overdue, it could just be the transfer which takes time, but it all varies from a few days to a month. Under the time your payment is overdue your coverage will remain active, but you need to make the payment otherwise the coverage will be cancelled.
Policy cancellation
The next step which comes att the end of the grace period is that your insurance company supsends your policy or even cancell it. It means that you will no longer have an active insurance policy and you will not be covered in case of any accident. And it is illegal in moste of the U.S states to drive whitout insurance and it you are caught by the police it could give you fines, license suspension, or even the impoundment of your vehicle.
Increased premiums
Your insurance might not be canceled at once, but if you miss a payment it could lead to a higher premium when you want to renew. Insurance companies is known to look for missed payments, as they see it as a sign of financial instability, it could also mark you as a high risk driver.
Difficulty getting coverage
Should your policy be canceled if you missed some payments, it could be harder to get coverage. A few insurance companies could charge drivers who have missed payments more or even reject you if you would have a history of missed payments. So the best way to avoid these kind of problems, is to use automatic payments, or good reminders that will make sure you dont miss a payment. If you would have problems financially, try talking to your insurance company and se what they might be able to help whit.