Most people choose to pay monthly for their car insurance plans. While it is possible to save large amounts of money using the tools at State Insurance by paying for an entire policy upfront, many people cannot afford to purchase a six-month policy in advance. People who are on monthly payments need to pay their bills regularly. If they do not, their insurance provider will stop providing coverage to them. There are consequences and penalties for missing a car insurance payment, as there are with other types of recurring payments. These can be more widespread than people first think.
Auto insurance providers usually allow a grace period of between one and 30 days. This means that you can make late payments, but counting on this grace period is not usually the best plan. As soon as you realize that you are behind on insurance payments, contact your car insurance provider. In many cases, they will grant you a temporary extension and let you know when you need to pay by so that your policy is not canceled. If your policy is canceled for a missed payment, you can possibly get hit with higher insurance rates or late fees. In some cases, your driver’s license could be revoked.
If you cannot afford an auto insurance payment, take the time to let your provider know. They can let you know the last possible date you can make a payment on, and can potentially give you an extension. Take advantage of the grace period your car insurance provider has to save up money and make the payment if you can.
If you realize that you will be late for payment, and it is before the due date of the payment, ask your car insurance provider to postpone the payment or extend the due date. This will allow you a temporary opportunity to come up with the money. Depending on the company you are purchasing insurance from, you might be able to do this online. Auto insurance carriers like Geico allow customers to delay bills through their automated system. Sometimes agents have discretion on how much leeway they can give a person who is going to be late. This means if they believe you have a credible reason that you cannot make the payment, you might have a longer extension on your deadline. Insurance agents can also accept partial payments in some cases.
Those who have missed payment by a few days can possibly reinstate the policy without a lapse in coverage. This is because they are still on the grace period for the policy. You will likely need to pay a late payment fee, in addition to the amount for the payment you missed. The grace period for each company can be different, so make sure to take this into consideration.
If your car insurance policy has been canceled, you will likely need to apply for a new policy. In most cases, you will pay more money for your coverage. People who have had their policy lapse for more than 30 days often see themselves put into a high-risk category. Rates can go up significantly.
Some auto insurance providers to allow people to reinstate a policy if it has been canceled for the first time, however. They may need to sign paperwork stating that they did not have coverage for the period they were not paying for. This protects the car insurance company from having to pay for an accident that occurred while a person did not have insurance. After this first time, though, an auto insurance company is unlikely to allow it again. You might not be able to get insurance through this company after, either, making it necessary to shop around for insurance at another provider.
If your policy is canceled for missing a payment, and you need to purchase a new policy, the best way to save money is to do some comparison-shopping. State Insurance has free quote tools that allow you to find the best prices for car insurance available. In some cases, a person may need to apply with a company that specializes in high-risk drivers. Some of the most prominent and well-known companies cater to this demographic, and professionals recommend getting quotes from at least three companies.
Once you have car insurance that allows you to drive legally in your state, you are ready to move on to some of the other situations that happen when a person has their auto insurance policy canceled due to nonpayment. If you owe your old car insurance company money, they could send it to a debt collection agency. If they do this, your credit score could be affected, and creditors will start to contact you to collect in the payment. Paying this off before that happens can be a good idea.
You will receive a legally required notice that your car insurance policy is canceled from your insurance company if it gets canceled. This notice could come via mail, email, or phone call. As soon as this happens, you will want to check on how long you have until the date you no longer have coverage. In most cases, this is between 15 and 20 days. During this time, you will be able to drive your vehicle legally. After the cancellation date, however, you will not be able to operate your motor vehicle legally, and there could be consequences if you are caught or in an accident. Unless you have purchased a new plan.
Make sure you have a valid car insurance policy that meets the minimum requirements in your state at all times to avoid the financial difficulties being in a car crash can bring. State Insurance gives top rates available on plans that suit your needs.
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