What Happens If You Are Late Paying Your Insurance Premium?
Yikes! What happens when you miss an insurance payment? Will your policy be canceled? You should check your personal auto policy section regarding termination and cancellation conditions. It will explain when, how, and for what reasons your personal insurance coverage will be terminated.
Every state has its own rules regarding policy cancellation of your automobile insurance. If you neglect to pay your premium in a timely manner, your insurance company has the right to cancel the policy after giving you at least 10 days notice. The notice of cancellation will be mailed to the policy holder with the date and time that the cancellation will take effect. Even if you are only one day late with your payment, you run the risk of cancellation.
That being said, some insurance companies may not immediately issue a cancellation notice. You may simply receive an overdue notice, asking you to pay the past-due premium plus a late fee. If you policy is cancelled it may be possible to have your coverage “reinstated” by paying the overdue premium and, in some cases, an additional sum.
Contact Insurance Doctor if you have questions about the cancellation policy on your automobile insurance policy.