Each state has its own rules governing the cancellation of automobile insurance policies. You should check Part F of your personal auto policy (PAP) regarding termination and cancellation conditions. This section will address when, how, and for what reasons coverage under your personal auto policy can be terminated. You should also check any applicable endorsements regarding cancellation.

If you fail to pay your premium on time, your insurance company has the right–after providing you with at least 10 days notice–to cancel the policy. The notice of cancellation, mailed to the named insured shown on the Declarations page of the policy, will inform you of the date and time the cancellation will take effect. Even if you’re only a day late with your premium payment, your state may allow your insurance company to cancel your insurance policy, and the company won’t necessarily reinstate you once it gets your money. Furthermore, once your policy has been canceled, you may find yourself paying more money for a comparable policy or having trouble finding insurance at all. For our clients, sometimes we can be of help in this situation by dealing with the insurance company for them.

That being said, some insurance companies will 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. Other companies may state in the cancellation notice that if payment is received by your insurance agent prior to the effective cancellation date shown, your coverage will be considered “reinstated.” It may also be possible for you to reinstate coverage after the effective cancellation date by paying the overdue premium and perhaps an additional sum. (However, it is likely that you will not be covered for any accidents between the effective date of cancellation and the date of reinstatement.)

In any event, you must look to state law and your automobile insurance policy to learn whether your policy will be canceled. Feel free to call us to ask for assistance.