AUTO INSURANCE ARTICLE

The Price You Have to Pay for Delinquent Auto Insurance Payments

By: letter_woman

Did you know that being delinquent on your auto insurance payment could cost you more than the fine for your late fee? What if we tell you the truth about the price that you are paying when you turn in your auto insurance premium late? This is the revealing truth. Not only will you incur a late fee in most cases but you are also putting at risk your existing coverage from being current and valid plus in most cases, your future rates.

Even if you are letting a small window time in paying your auto insurance after the due date, the worst-case scenario is that you may not even realize that your insurance policy was cancelled. And perhaps without you knowing it, you are driving around without a valid and current auto insurance coverage. Now, that’s scary there!

Let’s say you figure in a car accident. You thought of course, that everything is alright and covered. After all, you mailed your payment just a day after your due date. You remind yourself: "I'm covered" but the truth is you are not. It’s just that you don’t know yet that your coverage was cancelled. You are only confronted with the truth after you make a call to your insurance provider to report about your accident. And it shocks you, why would it not? They inform you that you do not have any coverage. An altercation ensues, with you insisting that you do have, because you mailed your payment. The company is polite but firm, telling you that paying a day after its due date is even considered late. And that as you speak your payment is being wired back to your account. Now you’re in trouble! Being in an auto accident with no insurance coverage is a big no-no. Since it is a legal requirement in most states, you can have yourself stripped of a license even if it was not your fault.

Assuming a grimmer scenario, your insurance provider has the prerogative to decide against insuring you, on the basis of your pockmarked payment history. They may issue a 'non-renewal' notice, detailing that they are no longer willing to insure you when your policy expires. This means too, that you will have to get an insurance policy from another carrier. Such a hassle if your current rate and coverage are products of meticulous research of what the auto insurance market has to offer.

Still there’s a possibility that your insurance company would be willing to renew your policy but not until you pay the entire term in full; an assurance against late payments. You may decide at this time to shop around for a new auto insurance provider but be careful. Because of your past payment history that is not entirely picture perfect, you may find that other insurance carriers could also require that you pay in full.

Still, another pain is up your sleeves. Your new auto insurance company may ask higher rates from you, al things being equal. Many insurance companies review your credit and prior insurance history when determining what rates to charge you. Of course, you might want to bite the bullet when it’s there. But this could have been avoided and you could remain enjoying your good rate had you just turned in your payments on time.