What Happens When You Are Late with Your Auto Insurance Payment?
Everyone has to deal with monthly bills, especially if you own one or more vehicles. There are times, especially when money is tight due to unforeseen illnesses or the loss of a job, that you may not have the income to pay your bills on time. While it’s smart to have an emergency fund or savings account, those can be depleted rather quickly if you are trying to support a family. A missed car insurance payment may not seem like a big deal, but there may be repercussions if you continually pay late.
What Happens If I Miss a Car Insurance Payment?
A late car insurance payment normally isn’t that big of a deal if you pay within your grace period. Grace periods are in place for times when your budget and payment schedules don’t match up. In many cases, your insurance agency doesn’t consider your payment late until your grace period ends. It’s always the best idea to pay your insurance on the date that it’s due. Most insurance companies will send out a reminder that you’ve missed a payment, just in case it was an oversight on your part.
Does Paying Car Insurance Late Have Repercussions?
One missed auto insurance payment normally will not have long term repercussions, especially if you talk to your agent about it. Each insurance company handles this type of issue differently, so making it a habit is not a good idea. If you continually miss payments, either in sequence or sporadically throughout the year, your account may be red-flagged, causing your premiums to go up or an increase to your deductible. If you are having financial problems, your best plan of action is to talk to your insurance agent to find out what your options are.
What Are the Most Common Penalties?
Non-renewals are one of the most common penalties, aside from possible late fees. Most insurance companies will overlook one missed auto insurance payment. If you continue to miss payments, late fees will be assessed. This can start to add up over time and, if too many payments are late, your company may choose not to renew your policy when it expires. If you receive a non-renewal letter or are told your policy has been flagged as a non-renewal, you will either have to negotiate a new policy or find a different company altogether. If you choose to negotiate a new policy, you can expect much higher premiums as well as higher late fees.
Will My Insurance Company Work with Me?
Your insurance company values your business, and most do understand the difficulties their clients face when hard times hit close to home. Paying your auto insurance payment in a timely fashion is always encouraged. If you are forced to miss a payment, the first thing you should do is contact your insurance agent. They may have a program or payment option that you can use to get back on track.
Don’t get caught in a never-ending cycle of late auto insurance payments. Do you have questions or concerns about your insurance policy? Contact the experts at Remland Insurance in Orange, California. If you are paying your car insurance late, they may be able to assist you in paying it on time in the future. They can also make suggestions and offer insights into how to prevent late payments in the future. Instead of stressing over the problem, call one of our agents to find a solution!